Opinion ID: 156355
Heading Depth: 3
Heading Rank: 3

Heading: Sufficiency of the Evidence to Support the Liability Verdict for Fraud and Deceit

Text: 19 Conoco also challenges the sufficiency of the evidence to support the jury's finding of liability on the fraud and deceit claims. Review of the adequacy of the jury's verdict is limited to determining whether the record--viewed in the light most favorable to the prevailing party--contains substantial evidence to support the jury's decision. Thunder Basin Coal Co. v. Southwestern Pub. Serv. Co., 104 F.3d 1205, 1212 (10th Cir.1997) (quotations omitted); see also Rainbow Travel Serv., Inc. v. Hilton Hotels Corp., 896 F.2d 1233, 1239 (10th Cir.1990). 20 After reviewing the record, we conclude that when viewed in the light most favorable to Okland, the record contains substantial evidence upon which a reasonable jury could have found Conoco liable in tort. Okland introduced evidence at trial showing that the monthly statements sent to Okland by Conoco indicated no deduction for PRC's. Appellant's App. Vol. I at 191-199, Vol. III at 722-29. These statements had been changed from an earlier format, allegedly to hide the new PRC exclusions. Id. Vol. III at 722-29. David Nicks, a Conoco representative, admitted that the statements did not reflect the PRC deduction or the failure to pay the tax reimbursement. Id. Vol. IV at 1446-47. 21 The jury also viewed letters sent by Conoco indicating the price to be paid to Okland, but not disclosing the PRC deductions. See, e.g., Appellee's Supplemental App. at 77-83. These documents implied that Okland would receive a percentage of the full resale price when in reality, Conoco only gave Okland a percentage of the resale price minus ten cents. Id. Richard Metz, an expert witness for Okland, testified that a Conoco interoffice memorandum, which indicated the PRC deduction was to be taken, along with other documents, showed the PRC deduction was profit and not a reimbursement for Conoco. Id. at 87; Appellant's App. Vol. III at 1029-31. Okland also presented evidence that Conoco's representative fraudulently induced Okland to enter into the contracts by concealing the fact that PRC's had been and would in the future be deducted from the resale price. Id. Vol. III at 713-21. Conoco also admitted deducting PRC's on a contract that did not permit such deductions. Id. Vol. IV at 1263, Vol. III at 1031-32. 22 Furthermore, even though Conoco argued that FERC Order 94 formed the basis of authorization under the contracts to exclude PRC's from the price Conoco paid to Okland, id. Vol. IV at 1156-57, 1238-39, Okland presented testimony, including the deposition testimony of a Conoco representative, that the order could not have authorized such an exclusion. Id. Vol. III at 980-81, 989-90; Appellee's Supplemental App. at 170-71. In fact, Okland's evidence showed that Conoco may not have complied with the requirements of FERC Order 94, which compliance was a prerequisite to any FERC authorization of a PRC. See, e.g., Appellant's App. Vol. III at 924-35, 982-84, 1037-38, Vol. IV at 1237-45. 23 Okland's evidence also tended to show that the Tailgate Purchasers had not authorized the PRC exclusions, even though Conoco had included some self-serving language in a few of those contracts, possibly in an attempt to use such an authorization as a defense in any subsequent litigation. See id. Vol. III at 1018-21, Vol. IV at 1246-50; Appellee's Supplemental App. at 108-09, 223-26. The jury, assessing the credibility of the witnesses, was entitled to draw inferences from all this evidence that Conoco's conduct constituted fraud and deceit. The fact that Conoco presented contrary evidence at trial, and urgently reargues the evidence on appeal, cannot overcome the proposition that the jury is the sole trier of the facts, and we cannot disturb their prerogative when there is evidence to support the verdict. There is here. 24 Because the jury's verdict as to the tort claims was based on substantial evidence, and punitive damages are allowable in tort actions, the district court's submission to the jury of punitive damages based on Okland's tort claims was not error.