Murphy Oil USA Inc v. Trivental Inc

438 F.3d 1008, 2006 U.S. App. LEXIS 3663, 2006 WL 350394
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 16, 2006
Docket04-6183, 04-6239
StatusPublished
Cited by23 cases

This text of 438 F.3d 1008 (Murphy Oil USA Inc v. Trivental Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy Oil USA Inc v. Trivental Inc, 438 F.3d 1008, 2006 U.S. App. LEXIS 3663, 2006 WL 350394 (10th Cir. 2006).

Opinions

[1011]*1011PAUL J. KELLY, JR., Circuit Judge.

Defendant-Appellant/Cross-Appellee Trivental, Inc.1 (“Trivental”) appeals from a judgment as a matter of law (“JMOL”) in favor of Plaintiff-Appellee/Cross-Appel-lant Murphy Oil U.S.A., Inc. (“Murphy”) on (1) Murphy’s breach of contract claim; (2) two of Trivental’s breach of contract counterclaims; and (3) Murphy’s breach of fiduciary duty claim. Lawrence Wood, an officer of Trivental, also appeals the district court judgment that he lacked standing to pursue his individual counterclaims. Finally, Trivental appeals the court’s award of attorney’s fees and pre-judgment interest in favor of Murphy.

Murphy cross-appeals from a judgment on a jury verdict in favor of Trivental with regard to a third breach of contract counterclaim. Murphy also cross-appeals the district court judgment denying punitive damages. Finally, Murphy cross-appeals the determination that Murphy was no't entitled to attorney’s fees with regard to Trivental’s counterclaims. Our jurisdiction arises under 28 U.S.C. § 1291, and we affirm in part, and reverse in part.

Background,

Murphy owns and operates gasoline service stations, including those in Wal-Mart locations, throughout portions of the country. Murphy and Trivental entered into a contract (“General Contract”), effective January 1, 2000, whereby Trivental was to perform work as the general contractor for the building of gasoline stations, four of which were relevant to the litigation in this case. Before the construction of any individual gas station, Trivental and Murphy would enter into a particularized contract (“Specific Contract”) that would outline the scope of work, contract price, payment terms, completion date, and other matters not addressed in the General Contract relevant to that particular station. Trivental and Murphy entered into Specific Contracts to build four gas stations, in these locations: New Iberia, Louisiana; Hugo, Tulsa, and Oklahoma City, Oklahoma.

Murphy sued Trivental claiming that Trivental breached its contract by failing to pay its subcontractors for work done on the Oklahoma City gas station. See Aplt. App. at 82. Murphy further argued that Trivental had misappropriated trust funds paid by Murphy, intended for the benefit of the subcontractors, in violation of Okla. Stat. Ann. tit. 42, §§ 152, 153. Trivental counterclaimed, arguing that Murphy had failed to fully compensate Trivental for “extra work” performed and materials supplied at the New Iberia, Hugo, and Tulsa stations. See ApltApp. at 88.

These counterclaims were submitted to the jury. The claims relating to the Tulsa and Hugo stations were decided under Oklahoma law, while the claim relating to the New Iberia station was decided under Louisiana law. Following deliberation, the jury awarded Trivental damages in the following amounts: (1) $37,500 for the Tulsa station, (2) $40,000 for the Hugo station, and (3) $137,500 for the New Iberia station. See Aplee. Br. 5-6.

Over a month later, the district court partially set aside the jury verdict in favor of Trivental, and granted JMOL for Murphy on the counterclaims relating to the two Oklahoma stations, ruling that Triven-tal had accepted negotiated amounts of money and therefore waived any right to pursue the remainder allegedly due on the contract. ApltApp. at 478-9.2 The dis[1012]*1012trict court had not instructed the jury on waiver. See id. at 1634 (“There is no instruction on waiver on breach of contract claims.”). As such, Trivental was awarded $137,500 in damages.

Next, the court entered JMOL on Murphy’s breach of contract claim, awarding Murphy $80,702.06 for actual damages, and an additional $9,074.76 in prejudgment interest. The district court also entered JMOL on Murphy’s breach of fiduciary duty claim, ruling that the managing officers of Trivental, Defendants Wood and Ramey, could be held personally liable for breach of trust. The district court also granted Murphy attorney’s fees in the amount of $77,040.75.

On appeal, Trivental argues that the district court erred in (1) setting aside the jury’s verdict and entering JMOL in favor of Murphy on the Oklahoma stations, (2) reserving the defense of waiver, (3) granting JMOL in favor of Murphy on its breach of fiduciary duty claim, (4) improperly shifting the burden of proof on damages to Trivental, (5) failing to instruct the jury on Trivental’s “first breach” theory, (6) failing to instruct on Trivental’s fraud and constructive fraud claims, and failing to grant it a new trial, (7) holding that Wood lacked standing to proceed on fraud and tortious interference claims, (8) awarding attorney’s fees to Murphy, and (9) awarding prejudgment interest to Murphy. In its cross-appeal, Murphy argues that the district court erred in (1) not granting Murphy JMOL or a new trial or remittitur on Trivental’s contract claim on the New Iberia station, (2) failing to submit Murphy’s laches defense to the jury, (3) not granting Murphy JMOL and awarding it punitive damages on its breach of fiduciary duty claim, and (4) not awarding Murphy attorney’s fees in connection with Triven-tal’s counterclaims.

Discussion

A. Trivental’s Appeal (04-6183)

1. Waiver

Trivental argues that sufficient evidence of Murphy’s breach of contract existed, and therefore the district court erred in setting aside the jury verdict on its counterclaims. Trivental further asserts that the district court erred in granting JMOL on waiver grounds, contending that waiver presents a question of fact for the jury.3 Murphy argues that the court’s ruling was proper because Trivental voluntarily and intentionally accepted partial payment pursuant to a negotiated contract modification and thereby waived its right to claim the remainder.

When a district court sits in diversity, it is required to apply the most recent statement of applicable substantive state law as pronounced by the particular state’s highest court. See Phillips v. New Hampshire Ins. Co., 263 F.3d 1215, 1218 (10th Cir.2001). On appeal, we use the “normal federal standards of appellate review to examine the district court’s decision process.” Id. (internal citations and quotations omitted). Thus, we review a district court’s decision on a motion for judgment as a matter of law de novo, applying Oklahoma law. Tanberg v. Sholtis, 401 F.3d 1151, 1156 (10th Cir.2005). This court applies the same standard as that applied by the district court. See Cummings v. Gen. [1013]*1013Motors, Corp., 365 F.3d 944, 949 (10th Cir.2004).

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Cite This Page — Counsel Stack

Bluebook (online)
438 F.3d 1008, 2006 U.S. App. LEXIS 3663, 2006 WL 350394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-oil-usa-inc-v-trivental-inc-ca10-2006.