Opinion ID: 156355
Heading Depth: 2
Heading Rank: 4

Heading: Jury Instructions on Silence and Duty to Disclose

Text: 85 Conoco alleges that the court erred in giving Jury Instructions 28 and 32 on Duty to Disclose 19 and Silence, 20 respectively. It also argues that the jury's finding against Conoco based on these instructions cannot support the tort damages. Conoco properly objected to these Instructions. Appellant's App. Vol. III at 1128-32, Vol. IV at 1458. 86 The determination of the substance of a jury instruction in a diversity case is a matter of state law, but the grant or denial of tendered instructions is governed by federal law and rules. The admission or exclusion of a particular jury instruction is within the sound discretion of the trial court. We review the trial court's conclusions on legal issues de novo, however, and need not defer to its decisions on questions of law. 87 City of Wichita v. United States Gypsum Co., 72 F.3d 1491, 1494-95 (10th Cir.1996) (citations omitted). 88 In addition, in reviewing jury instructions we consider them as a whole and ask whether they accurately stated the governing law and provided the jury with an ample understanding of the issues and the applicable standards. Brown v. Wal-Mart Stores, Inc., 11 F.3d 1559, 1564 (10th Cir.1993). The paramount questions are whether the jury was misled and whether the instructions provided an understanding of the issues and explained the jury's duty to determine those issues. Estate of Korf v. A.O. Smith Harvestore Prods., Inc., 917 F.2d 480, 484 (10th Cir.1990). Therefore, we will reverse the district court only if an erroneous instruction is prejudicial in light of the record as a whole. Mason v. Texaco, Inc., 862 F.2d 242, 246 (10th Cir.1988). 89 Conoco argues that even though the district court did not state its reason for refusing to submit Okland's constructive fraud claim to the jury, it did so because it did not believe there was a fiduciary relationship between Okland and Conoco. Consequently, contends Conoco, the court should not have instructed the jury as to silence and misstated the duty to disclose because silence by one party does not permit a finding of fraud or deceit in the absence of a fiduciary relationship. 90 Under Oklahoma law,  '[i]n determining whether there is a duty to speak, consideration must be given to the situation of the parties and matters with which they are dealing.'  Thrifty Rent-A-Car Sys., Inc. v. Brown Flight Rental One Corp., 24 F.3d 1190, 1195 (10th Cir.1994) (quoting Silk v. Phillips Petroleum Co., 760 P.2d 174, 179 (Okla.1988)). Those considerations may require either (1) an absolute positive duty to speak based on a fiduciary or similar duty, or (2) a duty to speak arising from a partial disclosure. See Thrifty Rent-A-Car Sys., 24 F.3d at 1195. The second duty is imposed because the speaker is  'under a duty to say nothing or to tell the whole truth. One conveying a false impression by the disclosure of some facts and the concealment of others is guilty of fraud, even though his statement is true as far as it goes, since such concealment is in effect a false representation that what is disclosed is the whole truth.'  21 Id. (quoting Deardorf v. Rosenbusch, 201 Okla. 420, 206 P.2d 996, 998 (1949)); see also Varn v. Maloney, 516 P.2d 1328, 1332 (Okla.1973); Ragland v. Shattuck Nat'l Bank, 36 F.3d 983, 991-92 (10th Cir.1994); Okla. Stat. tit. 76, § 3 (Deceit may be found, inter alia, by the suppression of a fact by one who is bound to disclose it, or who gives information of other facts which are likely to mislead for want of communication of that fact.). So even in the absence of a fiduciary or similar relationship, the duty to speak often arises. See Ragland, 36 F.3d at 991-92; Uptegraft v. Dome Petroleum Corp., 764 P.2d 1350, 1353-54 (Okla.1988). 91 Considering the evidence presented in this case, the district court properly instructed the jury that it could consider the situation of the parties and the subject of the matters with which they are dealing and find that Conoco breached its duty to disclose under those circumstances. Submission of Instructions 28 and 32 was therefore not error. 92 Substantial evidence also supported the jury's finding of deceit by concealment or nondisclosure and the damages it awarded thereon. The jury clearly heard evidence of the circumstances of the parties, of the subject matter of the contracts, and of Conoco's intent to deceive and to commit fraud. The district court's denial of Conoco's motion for judgment as a matter of law was not error.V. Admission of Damage Exhibits 93 Conoco sought to introduce Exhibit 182 and to inquire about it during its cross-examination of Steven Wetwiska, the President of Okland. Okland objected to the exhibit based on relevance because it said the well and its associated contract (No. 3536) were not involved in the case. Appellant's App. Vol. III at 801. The court sustained the objection. Later in the trial, Okland offered several damage summaries as exhibits that included Contract No. 3536 in the damage calculations. Id. Vol. I at 370-73, Vol. II at 660-61, Vol. III at 1039-48. Conoco objected, arguing that because Okland previously had contended the contract was not involved in the case, Okland's exhibits should not be admitted. Id. Vol. III at 1039-40. Okland's expert, Richard Metz, testified that the well was included in the calculations because Conoco had included it in its own calculations, and Mr. Metz had then used the Conoco figures as to the amount of the damages on that well. Id. at 1040. The court overruled the objections and allowed the exhibits into evidence. 94 On appeal, Conoco contends that once Okland argued the contract was not relevant, it should have been precluded from taking an inconsistent position later by introducing exhibits containing that contract. Conoco does not claim that Contract No. 3536 was irrelevant or that it was not at issue in this case. Nor did Conoco seek at trial to reexamine Mr. Wetwiska as to that particular contract. In addition, exhibits introduced by Conoco later in the trial included Contract No. 3536 in them. See, e.g., Appellee's Supplemental App. at 238. 95 We review the district court's evidentiary rulings for abuse of discretion. Cartier v. Jackson, 59 F.3d 1046, 1048 (10th Cir.1995). Conoco alleges that the court abused its discretion by failing to employ the doctrines of judicial estoppel and preclusion against inconsistent positions in judicial proceedings to exclude Okland's damage exhibits. 96 In a diversity case, we look to state law to determine whether and how to apply these doctrines. Tri-State Generation & Transmission Ass'n v. Shoshone River Power, Inc., 874 F.2d 1346, 1363 (10th Cir.1989); Ellis v. Arkansas Louisiana Gas Co., 609 F.2d 436, 440 (10th Cir.1979) (applying Oklahoma law). Under Oklahoma law, a party who knowingly and deliberately assumes a particular position is estopped from assuming an inconsistent position to the prejudice of the adverse party. Judicial estoppel applies only to prevent the advancement of inconsistent positions vis-a-vis matters of fact. Parker v. Elam, 829 P.2d 677, 680 (Okla.1992) (footnote omitted). 97 We find no evidence in the record to suggest that Okland knowingly and deliberately assumed contradictory positions as to the relevance of Contract No. 3536. More important, we find no evidence of prejudice to Conoco. When Okland objected to Conoco's exhibit based on relevance, Conoco's counsel responded: This is simply one of the series of instruments signed by the parties, and we're just trying to establish the sequence of events. Appellant's App. Vol. III at 801. Conoco does not show us how the exclusion of Contract No. 3536 has harmed it, nor did it ever seek to recall Mr. Wetwiska or ask the district court to admit the exhibit after the court allowed Okland's exhibits into evidence. Accordingly, this is not a case in which the doctrines should apply, and the district court did not abuse its discretion in admitting Okland's damage exhibits. 98