Opinion ID: 162593
Heading Depth: 3
Heading Rank: 3

Heading: Alleged Threat

Text: 43 In their appellate brief, Lantec and Lantec Brazil argue a threat made by Tom Pesut immediately following the Las Vegas meeting raised a clear disputed fact about Novell's intention to repudiate the [Original Equipment Manufacturer] Agreement[s]. According to a portion of an affidavit submitted by Marcello Thoillier, Mr. Pesut, a Novell executive, said if the Lantec companies opposed the Novell/WordPerfect merger Novell would immediately sever its relationship with these companies and put them out of business. Lantec and Lantec Brazil argue the alleged threat belied the notion that Novell intended to continue doing business with Lantec. 44 The district court did not consider whether the alleged threat created a material issue of fact. Instead, the district court struck the portion of Mr. Thoillier's affidavit pertaining to the threat because the court found it was an attempt to create a sham issue of fact. The court noted Mr. Thoillier was extensively deposed over a period of several days on the same subject matters which form the bases for his affidavit. The court determined the relevant allegation conflicts with Mr. Thoillier's prior deposition testimony regarding the meeting. 45 We review a district court's decision to exclude evidence at the summary judgment stage for abuse of discretion. Sports Racing Servs., Inc. v. Sports Car Club, 131 F.3d 874, 894 (10th Cir.1997). Under this standard we will not disturb the district court's decision unless [we have] a definite and firm conviction that the lower court made a clear error of judgment or exceeded the bounds of permissible choice in the circumstances. United States v. Ortiz, 804 F.2d 1161, 1164 n. 2 (10th Cir.1986.) 46 There is authority for the proposition that in determining whether a material issue of fact exists, an affidavit may not be disregarded because it conflicts with the affiant's prior sworn statements. In assessing conflict under these circumstances, however, courts will disregard a contrary affidavit when they conclude that it constitutes an attempt to create a sham fact issue. 47 Franks v. Nimmo, 796 F.2d 1230, 1237 (10th Cir.1986) (citations omitted). In deciding whether an affidavit is an attempt to create a sham issue of fact, the relevant factors are whether the affiant was cross-examined during his earlier testimony, whether the affiant had access to the pertinent evidence at the time of his earlier testimony or whether the affidavit was based on newly discovered evidence, and whether the earlier testimony reflects confusion which the affidavit attempts to explain. Id. Lantec and Lantec Brazil argue affidavit references to the alleged threat did not directly contradict Mr. Thoillier's deposition testimony. According to their argument, counsel for Novell never asked Mr. Thoillier about his meeting with Mr. Pesut. Instead, Mr. Thoillier's deposition testimony only concerned the May 1994 meeting in Las Vegas with Novell officials and counsel for the Lantec companies and Novell. According to the affidavit, Mr. Pesut's threat came not in the scheduled meeting, but in a private conversation immediately following the meeting. 48 After reviewing the deposition and affidavit, we conclude the district court did not abuse its discretion in ruling parts of the affidavit contradicted Mr. Thoillier's deposition testimony. During the deposition Mr. Thoillier was specifically asked whether Mr Pesut was receptive to a discussion about continuing Novell's association with the Lantec companies. Mr. Thoillier answered he did not recall these exact words. Counsel for Novell then asked whether Novell had communicated that as far as it was concerned, it was prepared to go ahead with the [Original Equipment Manufacturer Agreements]. Mr. Thoillier said it was discussed. Searching for further clarification, counsel for Novell asked to identify the result of the meeting. Mr. Thoillier admitted Lantec and Lantec Brazil were supposed to decide whether they wanted to modify their agreements with Novell and then schedule another meeting with Novell. Nothing in the deposition questioning suggested Mr. Thoillier should limit his answers to discussions occurring when all of the people attending the meeting were present. During his deposition, Mr. Thoillier never mentioned any threats from Mr. Pesut. Consequently, the district court did not abuse its discretion in concluding the portions of the affidavit related to the alleged threat were contradictory. 49 Lantec and Lantec Brazil also argue the relevant portion of the affidavit was not intended to create a sham issue of fact. They point to the deposition testimony of LanCompany's Chief Financial Officer, Ovidio Rovell, who testified Mr. Thoillier told him of Mr. Pesut's alleged threat. Novell conducted Mr. Rovell's deposition before Mr. Thoillier's. Because Mr. Rovell's testimony of Mr. Thoillier's hearsay statements gave Novell prior notice of the alleged threat, Lantec and Lantec Brazil argue the affidavit cannot be viewed as an attempt to fabricate a disputed factual issue. 50 While it is true Novell had notice of the alleged threat, we cannot conclude the district court abused its discretion when other factors suggest the affidavit was intended to create a sham issue of fact. First, Mr. Thoillier was represented by counsel and cross-examined during his deposition. See Franks, 796 F.2d at 1237. Second, because the alleged threat is not newly discovered evidence, there is no question Mr. Thoillier should have known about the alleged threat at the time of the deposition. See id. Third, there is nothing in the deposition testimony reflecting any level of confusion or uncertainty concerning Mr. Thoillier's testimony requiring clarification or explanation. See id. Given these circumstances, we do not have a definite and firm conviction the district court exceeded the bounds of permissible choice in striking the portions of Mr. Thoillier's affidavit related to the alleged threat. Consequently, we will not consider whether the alleged threat would have raised a material issue of fact. 51 In short, we conclude Novell was entitled to summary judgment on the claims involving the Original Equipment Manufacturer Agreements. Mr. Palmeri's telephone message was not definite enough to amount to a repudiation of the Agreements. Even assuming otherwise, the record shows Novell subsequently sent a letter reaffirming the Agreements and acted in accordance with the reaffirmation at a subsequent meeting. Aside from properly stricken portions of an affidavit, Lantec and Lantec Brazil have not directed us to any portion of the record suggesting otherwise. Therefore, we affirm the district court's grant of summary judgment on the breach of the Original Equipment Manufacturer Agreement claims. 52