Simulnet East Associates v. Ramada Hotel Operating Company
Published: Jan. 3, 1998 | Result Date: Jul. 31, 1997 | Filing Date: Jan. 1, 1900 |Case number: CVS89604PMP – $18,943,200
Court
USDC Nevada
Attorneys
Plaintiff
Defendant
Facts
Plaintiffs Simulnet East Associates (Simulnet) is a company which at one time supplied satellite television and in-room movie services to hotels, including various Ramada Hotels. Defendant Ramada Hotel Operating Company and Simulnet were parties to a number of contracts with a five-year initial term and a right of first refusal for a second term wherein Simulnet agreed to provide satellite television and in-room services to various Ramada hotels. In 1989, Simulnet sued Ramada based on breach of contract and breach of the implied covenant of good faith and tortious interference with contractual relations theories of recovery. Simulnet contended that Ramada breached some of the contracts by failing to pay monies due and owing Simulnet under those contracts, failing to buy out the contracts for the hotel properties Ramada sold, and by failing to give Simulnet the right of first refusal to bid on a second term of the contracts. Ramada denied that it breached the contracts and contended that Simulnet was in default because it had failed to perform its obligations to deliver television and movies under the contracts. Simulnet contended that Ramada's breach of the contracts caused the foreseeable financial ruin of Simulnet. Simulnet ceased providing service to Ramada properties in late 1989 and eventually ceased all operations in May 1990. The case was set to be tried before a jury in August 1992, but after four days of pretrial conferences with visiting Judge Mary Johnson Lowe, Simulnet's claims were dismissed in their entirety based upon the fact that there was a prevailing party attorney fees provision in the contracts and, Simulnet, having ceased business operations, could not post a bond in the amount of $500,000 for defendants' attorney fees. Simulnet appealed the dismissal to the Ninth Circuit Court of Appeals, and in Simulnet East Associates v. Ramada Hotel Operating Company, 37 F.3d 573 (1994), the Ninth Circuit determined that the imposition of the security bond was an abuse of discretion and reversed and remanded the case for trial which commenced on March 27, 1995. The last trial lasted ten days. The jury awarded $10,497 in compensatory damages. Following trial, Simulnet moved for attorney fees and prejudgment interest on the jury verdict amount. Prejudgment interest in the amount of $5,816,988 and attorney fees in the amount of $322,078 was awarded Simulnet bringing the total amended judgment to $16,431,563. Interest continued to accrue on the amended judgment which was filed on June 9, 1995. Ramada appealed the jury determination and the District Court's determination on post trial motions to the Ninth Circuit Court of Appeals.
Settlement Discussions
Ramada had made an offer of judgment in the amount of $79,000 in 1992. Ramada increased its offer of settlement to $100,000 just prior to closing arguments.
Damages
The plaintiff asked the jury for $10.75 million. Defendant's counsel suggested that a defense verdict be returned, or in the alternative, an award of $79,000 for the accounts receivable balance he made, at most.
Result
On July 31, 1997, the Ninth Circuit issued a Memorandum Decision affirming the jury's determination and district court's post trial motions determination. On Aug. 14, 1997, a satisfaction of judgment in the amount of $18,943,166.25 was entered which represented Ramada's full payment to Simulnet of the amended judgment plus all post judgment interest in the amount of $2,833,681.25.
Other Information
The verdict was satisfied approximately seven years and four months after the case was filed.
Deliberation
3+ hours
Poll
8-0
Length
10 days
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