United States District Court, D. Delaware
For VICI Racing LLC, Plaintiff: Christopher D. Loizides, LEAD ATTORNEY, Loizides & Associates, Wilmington, DE; Joseph P. Klock, Jr., Juan Carlos Antorcha, PRO HAC VICE.
For T-Mobile USA Inc., Defendant: Peter J. Walsh, Jr, LEAD ATTORNEY, Jennifer Catherine Wasson, Potter Anderson & Corroon, LLP, Wilmington, DE; Gavin W. Skok, John D. Lowery, PRO HAC VICE.
For T-Mobile USA Inc., Counter Claimant: Peter J. Walsh, Jr, LEAD ATTORNEY, Potter Anderson & Corroon, LLP Wilmington, DE.
For VICI Racing LLC, Counter Defendant: Christopher D. Loizides, Loizides & Associates, Wilmington, DE.
Sue L. Robinson, United States District Judge.
At Wilmington this 8th day of April, 2015, on remand from the United States Court of Appeals for the Third Circuit, having considered the parties' briefs on remand and the papers submitted therewith; the court issues its decision based on the following reasoning:
Plaintiff VICI Racing, LLC (" plaintiff'), a Florida corporation with its principal place of business in Miami, Florida, filed this suit on September 30, 2010 against defendant T-Mobile USA, Inc. (" defendant" ), a Delaware corporation with its principal place of business in Bellevue, Washington. (D.I. 1) Plaintiff claimed damages totaling $14,000,000 for the alleged breach of contract relating to a sponsorship agreement (" the Agreement" ) for a sports car racing team. ( Id. ) The Agreement provided for a $1 million payment in 2009 and $7 million payments in each of years 2010 and 2011. VICI Racing, LLC v. T-Mobile USA, Inc., 921 F.Supp.2d 317, 324 (D. Del. 2013). Following a bench trial, the court found that defendant breached the Agreement. Id. at 334. Specifically, the court concluded that plaintiff " was counting on the $7 million to pay some of the expenses incurred in the 2009 racing season . . . [and] was preparing for the 2010 season." Id. The court declined to award plaintiff the second $7 million payment, as plaintiff did not mitigate the damages and such payment would provide plaintiff with an unfair windfall. Id. The court entered judgment for the plaintiff and awarded damages of $7 million and reasonable attorney fees and costs, pursuant to the attorney fees provision in the Agreement. Id. at 334-35.
2. On March 1, 2013, defendant appealed the damages award to the Third Circuit and plaintiff cross-appealed, seeking the second payment of $7 million. On August 13, 2014, the Third Circuit affirmed the court's award of the first $7 million payment and reversed the court's denial of the second $7 million payment, remanding the case for further consideration of the 2011 damages issue. VICI Racing, LLC v. T-Mobile USA, Inc., 763 F.3d 273, 304 (3d Cir. 2014). Specifically, the court should
" consider, in the first instance, upon applying the appropriate burden of proof whether to award VICI the additional $7 million or a lesser sum based on a proper measure of expectation damages, including the deduction of actual costs avoided," but " shall not consider any evidence or argument that [plaintiff] failed to mitigate damages . . . ." Id.