CHICAGO (dpa-AFX) - Pendrell Corp. (PCO) said that its subsidiary ICO Global Communications (Operations) Ltd. filed a petition with the California Supreme Court seeking review of a recent decision by the California Court of Appeal that overturned a 2008 Superior Court judgment against Boeing Co.(BA) and one of its subsidiaries.
The judgment had awarded ICO $603 million, including punitive damages, after a jury found Boeing liable for fraud, tortious interference and breach of contract.
Pendrell said ICO's petition details how ICO's constitutional due process rights were violated because two Court of Appeal justices who recused themselves more than two years after the appeal was filed had participated in deliberations for an extended period during which the appellate panel reviewed the record, prepared memoranda about the case, held an oral argument, and began drafting an opinion.
A third justice who was appointed after the two conflicted justices had both withdrawn joined the panel only 12 business days before the panel held a second oral argument.
The petition contends that the Court of Appeal should have been reconstituted with three unbiased justices who had not deliberated with the conflicted justices. No reason for the recusals has been given, although state records reflect that one justice owned as much as $1 million in Boeing stock, and a second justice acquired Boeing stock while the case was pending before the court.
The petition also asked the Supreme Court to correct the Court of Appeal's fundamentally flawed legal conclusions relating to waiver and forfeiture of contract rights, which conflict with existing California case precedent. Those conclusions disregarded evidence supporting the jury's explicit finding that ICO had not waived its breach of contract claim.
On 14th May 2012, ICO Global Communications had said that it was notified that its petition for rehearing filed on May 1 with Division 8 of the California 2nd District Court of Appeal in its litigation with The Boeingand certain of its subsidiaries was denied. The Court also denied ICO's request for publication of the Court's opinion.
In April 2012, Pendrell had announced that the Court of Appeal of the State of California, Second District, has overturned the 2008 California Superior Court jury verdict in the litigation between Pendrell's subsidiary, ICO Global Communications (Operations) Limited , and The Boeing Co. and certain of its subsidiaries. The Court also awarded Boeing its appellate costs.
Pendrell had noted that ICO was awarded $603 million in October, 2008 by a jury following a lengthy trial in California Superior Court. The jury had found that one of Boeing's subsidiaries had committed fraud and breach of contract, and that Boeing had tortiously interfered with ICO's contractual rights in connection with a $2 billion construction and launch agreement for a worldwide satellite communications network.
Judgment on the $603 million verdict was later entered and affirmed by the Superior Court with post-judgment interest of ten percent. Boeing appealed the verdict in early 2009.
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© 2012 AFX News
