Strickland Tower v. AT&T Communications

CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 4, 1997
Docket96-5150
StatusPublished

This text of Strickland Tower v. AT&T Communications (Strickland Tower v. AT&T Communications) 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
Strickland Tower v. AT&T Communications, (10th Cir. 1997).

Opinion

UNITED STATES COURT OF APPEALS Tenth Circuit Byron White United States Courthouse 1823 Stout Street Denver, Colorado 80294 (303) 844-3157 Patrick J. Fisher, Jr. Elisabeth A. Shumaker Clerk Chief Deputy Clerk

November 25, 1997

TO: All recipients of the captioned opinion

RE: 96-5150 & 96-5167, Strickland v. AT&T Filed November 4, 1997

Please be advised of the following correction to the captioned decision:

In the attorney designation section on the first page of the opinion, counsel are reversed. In fact, Mr. Neff and Mr. Brune appeared for Defendant-Appellant; Mr. Hoster and Ms. Eden appeared for Plaintiff-Appellee.

Please make the appropriate correction.

Very truly yours,

Patrick Fisher, Clerk

Susie Tidwell Deputy Clerk F I L E D United States Court of Appeals Tenth Circuit PUBLISH NOV 4 1997 UNITED STATES COURT OF APPEALS PATRICK FISHER Clerk TENTH CIRCUIT

STRICKLAND TOWER MAINTENANCE, INC., an Oklahoma Corporation,

Plaintiff-Appelle, Cross- Appellant, v. No. 96-5150 & 96-5167 AT&T COMMUNICATIONS, INC., a Delaware Corporation,

Defendant-Appellant, Cross- Appellee.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA (D. Ct. No. 94-CV-1015)

Craig W. Hoster (Barbara J. Eden with him on the briefs), Baker & Hoster, Tulsa, Oklahoma, appearing for Plaintiff-Appellee.

Jonathan C. Neff (Kenneth L. Brune with him on the briefs), Brune & Neff, P.C., Tulsa, Oklahoma, appearing for Defendant-Appellant.

Before PORFILIO, ANDERSON, and TACHA, Circuit Judges.

TACHA, Circuit Judge.

Defendant AT&T Communications, Inc. appeals from an adverse jury verdict and award of attorney’s fees in this contract action. Plaintiff Strickland

Tower Management (“STM”) cross appeals for, among other things, prejudgment

interest on its damages. We take jurisdiction of this matter pursuant to 28 U.S.C.

§ 1291. We now affirm in part and reverse in part.

Background

For 25 years preceding this dispute, STM performed services for AT&T on

a number of different contracts. These contracts were STM’s largest source of

revenue. From 1988-91, payments from AT&T constituted 90 percent of STM’s

total income.

In the summer or fall of 1990, STM and AT&T discussed the possibility of

STM’s overseeing the burying of a 46-mile-long fiber-optic cable in the St. Louis,

Missouri area. As part of its work on the project--known as the Florissant-

Hillsboro Lightguide Project--STM would be required to provide many services,

including oversight of the project’s construction crews. During the preliminary

discussions, an AT&T representative informed STM that STM could use

“recorders” instead of “inspectors” to supervise the crews. Recorders are a less

skilled, and consequently less expensive, class of laborers than inspectors. STM

relied on AT&T’s comment about recorders in submitting its proposal for the

project.

In December of 1990, the parties signed a contract for STM’s services on

-2- the Lightguide Project. The contract set STM’s compensation at 23.5 percent of

the “total project cost.” The contract did not define “total project cost” but did

place responsibility for calculating the total cost with AT&T. The contract also

contained an incentive; STM would receive an additional 1 percent of the total

project cost if STM kept that cost at less than 2 percent above the “bid price.”

In 1991, after the project had begun, AT&T representatives met with STM

authorities. At that meeting, AT&T declared that they wanted inspectors to be

used on the job, not recorders. AT&T also demanded that an AT&T

representative manage the project from that time forward. This demand

conflicted with the terms of the contract, which gave STM management

responsibility over the project. According to Clyde Strickland, owner of STM,

AT&T assured STM at the meeting that STM would receive future work to cover

any losses resulting from the proposed changes. 1 STM officials interpreted this

comment as a threat that if STM did not make the changes, AT&T would not give

them future work. STM then agreed to the changes.

The parties met in Tulsa in August 1992 after STM had completed the

project. There, AT&T informed STM that the total project cost was $6,514,891.

AT&T subsequently compensated STM based on that figure. Later, STM

1 An AT&T representative, Mr. David Seals, denied that he ever made such an offer to Strickland and STM. We find this factual dispute irrelevant to AT&T’s appeal; thus, we assume that AT&T made the statement.

-3- discovered an internal AT&T accounting record, known as the “FD-10,” which

indicated that the total cost of the Lightguide Project was actually $7,229,874.

AT&T accounts for the difference between the figure it gave at the Tulsa meeting

and the higher one in the FD-10 by noting that the FD-10 includes many of

AT&T’s internal expenses that the parties did not intend to include in the

contract’s “total project costs.”

STM filed suit against AT&T based on a variety of contract, fraud, and tort

claims. The district court granted AT&T summary judgment on all but three of

STM’s claims, which went to trial. First, STM asserted that AT&T committed

actual fraud by misrepresenting the “total project cost.” Second, STM asserted

that AT&T breached the written contract by paying STM 23.5 percent of

$6,514,891 rather than 23.5 percent of $7,229,874, the real “total project cost.”

Finally, STM asserted that AT&T used economic duress to force STM to agree to

use inspectors and hand control over the project to AT&T.

The jury found against STM on actual fraud but awarded it $470,601 in

restitutionary damages on the economic duress claim and $172,973 for AT&T’s

breach of the written contract. The district court then denied AT&T’s motion for

judgment as a matter of law on economic duress and breach of contract. The

district court also granted STM $118,690 in attorney’s fees relating to the breach

of contract claim but denied STM’s request for prejudgment interest.

-4- AT&T presents three major issues on appeal and STM raises one major

issue on cross appeal. AT&T appeals the district court’s refusal to grant it

judgment as a matter of law on STM’s claims of economic duress and breach of

written contract. Also, if we do not grant AT&T judgment as a matter of law for

breach of contract, AT&T urges this court to reverse the award of attorney’s fees

related to that claim. In its cross appeal, STM asks us to award it prejudgment

interest on the jury verdicts for economic duress and breach of contract. The

parties presented several additional arguments in their appeals. We address those

arguments after discussing the four issues noted above.

Discussion

The district court applied Oklahoma law to this case and neither party

challenges that finding on appeal. Therefore, we accept the view of the district

court that Oklahoma law applies. See Jordan v. Bowen, 808 F.2d 733, 736 (10th

Cir. 1987) (“Appellants who fail to argue [an] issue in their brief are deemed to

have waived [it] on appeal.”).

I. AT&T’s Appeals for Judgment as a Matter of Law

A. Standard of Review

First, we address AT&T’s appeal of the district court’s denial of judgment

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pat Bell and Hazel Bell v. United States
380 F.2d 682 (Tenth Circuit, 1967)
United States v. Federal Insurance Company
634 F.2d 1050 (Tenth Circuit, 1980)
Mcnickle v. Bankers Life And Casualty Company
888 F.2d 678 (Tenth Circuit, 1989)
Gracia v. Lee
976 F.2d 1344 (Tenth Circuit, 1992)
Mason v. Oklahoma Turnpike Authority
115 F.3d 1442 (Tenth Circuit, 1997)
Withrow v. Red Eagle Oil Co.
755 P.2d 622 (Supreme Court of Oklahoma, 1988)
Burrows Construction Co. v. Independent School District No. 2
1985 OK 57 (Supreme Court of Oklahoma, 1985)
Wilkerson Motor Co., Inc. v. Johnson
1978 OK 12 (Supreme Court of Oklahoma, 1978)
Russell v. Flanagan
1975 OK 173 (Supreme Court of Oklahoma, 1975)
Thompson v. Independent School District No. 94 of Garfield County
886 P.2d 996 (Supreme Court of Oklahoma, 1994)
Centric Corp. v. Morrison-Knudsen Co.
1986 OK 83 (Supreme Court of Oklahoma, 1986)
Sinclair Refining Co. v. Roberts
1949 OK 103 (Supreme Court of Oklahoma, 1949)

Cite This Page — Counsel Stack

Bluebook (online)
Strickland Tower v. AT&T Communications, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strickland-tower-v-att-communications-ca10-1997.