Opinion ID: 169412
Heading Depth: 2
Heading Rank: 2

Heading: Liability as Joint Venturer

Text: 26 Plaintiffs argue that Anheuser-Busch is liable regardless of whether it served beer directly to Albright because Tumbleweed did, and Anheuser-Busch was in a joint venture with Tumbleweed. In Oklahoma a party may be liable for the torts of its joint venturers. See LeFlore v. Reflections of Tulsa, Inc., 708 P.2d 1068, 1071-72 (Okla.1985). Oklahoma law considers parties to be in a joint venture when three elements are satisfied: (1) joint interest in property, (2) an express or implied agreement to share profits and losses of the venture and (3) action or conduct showing cooperation in the project. Martin v. Chapel, Wilkinson, Riggs, & Abney, 637 P.2d 81, 85 (Okla.1981). The district court found that there was no profit-sharing agreement, and hence no joint venture. We agree. 27 In support of their joint-venture argument, Plaintiffs point to both Anheuser-Busch's provision of beer at the Calf Fry and Anheuser-Busch's involvement in publicity and sponsorship of the event. As we previously stated, although the Agreement between the Promoter and Anheuser-Busch was not facially with Tumbleweed, we assume without deciding that it was actually with Tumbleweed, and we will not distinguish further between Tumbleweed and the Promoter. 28 Nonetheless, there was no joint venture because Anheuser-Busch and Tumbleweed did not share profits with one another. Virtually all products and services provided by one to the other were paid for at market prices. Not only does the Agreement stipulate that the parties have contracted at market rates, but Plaintiffs have not disputed that Anheuser-Busch was paid a market rate for the beer that it sold to Tumbleweed. Anheuser-Busch certainly benefitted from the success of the event by selling more beer, but this is true of any supplier. As a seller of beer, it was simply paid for its product. Separately, Anheuser-Busch paid to be the title sponsor of the Calf Fry. Under Oklahoma law the relationship between Anheuser-Busch and Tumbleweed was therefore not a joint venture. See McGee v. Alexander, 37 P.3d 800, 806 (Okla.2001) (no profit sharing when supplier provided and charged for services at a predetermined rate; there was simply nothing in the summary judgment record indicating Willow Creek was prepared to offer its services at a loss or reap additional profits depending on the success or lack thereof of the Hillcrest event). 29 To support their joint-venture argument, Plaintiffs rely on LeFlore, 708 P.2d 1068. In LeFlore the winner of the Miss Legs of Tulsa contest sued a restaurant for invading her privacy by using her name without her permission to advertise an I love you, Tulsa party at the restaurant. Id. at 1070. The restaurant contended that it was not liable because the advertisement was produced and broadcast solely by a radio station; but the plaintiff responded that the party was a joint venture of the restaurant, the radio station, and a clothing store, so the restaurant shared liability. The radio station advertised and hosted the party; the clothing store presented a fashion show at the party; and the restaurant provided the facility, the staff, and food, but charged patrons half price for beverages. The three enterprises did not impose any charges on one another; and they shared profit in that all benefitted from the publicity surrounding the event, although the restaurant also derived some profit from the half-price beverage sales and sales of club memberships. The Oklahoma Supreme Court upheld the jury's finding that the restaurant had engaged in a joint venture with the radio station and the clothing store. Id. at 1072-73. 30 Plaintiffs argue that just as the businesses in LeFlore were joint venturers because they shared the profits of the I love you, Tulsa publicity, Tumbleweed and Anheuser-Busch both depended on the success of the Calf Fry to generate publicity and thus shared the profits of the event. But Anheuser-Busch's purchase of sponsorship rights does not make it a joint venturer with the seller of those rights. Although both Anheuser-Busch and Tumbleweed stood to benefit if the Calf Fry succeeded, this alignment of interests arose because Tumbleweed sold part of its publicity interest to Anheuser-Busch. The parties did not share that interest. Indeed, the Agreement contained a promise from Tumbleweed to Anheuser-Busch that at least 1500 people would attend each Calf Fry event, thereby shifting the risk of poor attendance to Tumbleweed. To adopt Plaintiffs' argument would be to imagine that Oklahoma law treats as a joint venturer any entity that pays to have its name tied to an event regardless of its control of the activity. Unlike the situation in LeFlore, every significant component of the relationship between Anheuser-Busch and Tumbleweed was bought and sold at market rates. Plaintiffs point to Anheuser-Busch's gratuitous provision of logistical signs at the event, but this reflected only an incidental cost to Anheuser-Busch and is a customary service it provides for its retail accounts. This case is not controlled by LeFlore. III. CONCLUSION 31 For the foregoing reasons we AFFIRM the district court's grant of summary judgment to Anheuser-Busch.