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Sprint Nextel Corp. v. Simple Cell Inc.

Citations: 248 F. Supp. 3d 663; 2017 U.S. Dist. LEXIS 50136Docket: Civil No. CCB-13-617

Court: District Court, D. Maryland; March 31, 2017; Federal District Court

Narrative Opinion Summary

The case involves Sprint Nextel Corporation and Sprint Communications Company, LP (Sprint) against multiple defendants, including Wireless Buybacks LLC and Simple Cell, Inc., alleging that the defendants unlawfully obtained and resold Sprint devices. Sprint sought partial summary judgment on claims including breach of contract, conversion, and tortious interference, while defendants filed cross motions for summary judgment. The court granted Sprint's motion in part, denied the defendants’ motions, and upheld a temporary restraining order (TRO) against Wireless Buybacks. Key issues included the admissibility of Sprint's spreadsheets as business records, which the court rejected, and the alleged breach of contract by Wireless Buybacks for unpaid service charges and termination fees. The court found Wireless Buybacks liable for breach but reserved judgment on damages due to disputes. Claims of tortious interference and civil conspiracy were denied summary judgment due to factual disputes and lack of evidence of independent tortious injury. Additionally, the court addressed procedural objections on evidence admissibility and the scope of new claims introduced in replies. The outcome left several matters unresolved, necessitating further proceedings to address outstanding factual and legal questions.

Legal Issues Addressed

Admissibility of Business Records under Federal Rule of Evidence 803(6)

Application: Sprint's spreadsheets summarizing phone data failed to meet the criteria for business records due to insufficient evidence about the data's collection and maintenance, leading to their exclusion.

Reasoning: The two spreadsheets in question do not meet the business records standard, as they are seen as summaries rather than direct business records.

Civil Conspiracy in Maryland

Application: Sprint's allegations of conspiracy involving Wireless Buybacks and others were denied summary judgment due to insufficient evidence of an independent tortious injury.

Reasoning: Civil conspiracy cannot independently support a damage award without a separate tortious injury to the plaintiff, as established in Lloyd v. Gen. Motors Corp.

Contract Breach and Waiver

Application: Wireless Buybacks' argument that Sprint waived its right to damages by canceling contracts without demanding payment was rejected due to a non-waiver clause in the contract.

Reasoning: The legal principle of waiver requires clear intent, which the defendants fail to demonstrate.

Summary Judgment Standard under Federal Rule of Civil Procedure 56(a)

Application: The court evaluated whether there were genuine disputes of material fact that could impact the outcome of the case, denying summary judgment when such disputes existed.

Reasoning: The legal standard for summary judgment under Federal Rule of Civil Procedure 56(a) requires that the movant demonstrates no genuine dispute of material fact exists, warranting judgment as a matter of law.

Temporary Restraining Order (TRO) Relief Considerations

Application: The court denied Wireless Buybacks' request for relief from the TRO, emphasizing the necessity for Sprint to confirm phones are not classified as 'stolen' under the TRO's terms.

Reasoning: Wireless Buybacks, LLC seeks relief from a previously issued temporary restraining order (TRO).

Tortious Interference with Contract

Application: Sprint's claim against Wireless Buybacks for tortious interference was partially supported by evidence, but factual disputes required further examination.

Reasoning: The elements of tortious interference with contract include: (1) the existence of a contract between the plaintiff and a third party, (2) the defendant’s knowledge of that contract, (3) intentional interference by the defendant, (4) breach by the third party, and (5) resulting damages to the plaintiff.