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Flight Concepts Limited Partnership v. Boeing Co.

38 F.3d 1152 (1994)

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Flight Concepts Limited Partnership v. Boeing Co.

United States Court of Appeals for the Tenth Circuit

38 F.3d 1152 (1994)

Facts

Flight Concepts Limited Partnership, Russell O’Quinn, Gilman Hill, and the Skyfox Corporation (the group) (plaintiffs) designed the Skyfox military airplane (Skyfox) and contracted with the Boeing Company (Boeing) (defendant) to produce and market the Skyfox in return for paying the group a royalty for each Skyfox sold. Boeing assured the group that nothing in the contract ran counter to the group’s interests. Relying on that representation, O’Quinn signed the contract without reading it. In fact, the contract (1) relieved Boeing of the obligation to produce any Skyfoxes, (2) denied the existence of any joint venture or other fiduciary relationship between the parties, and (3) denied the existence of any promises or representations not contained in the contract itself. Unbeknownst to the group, Boeing had no plans to produce or sell Skyfoxes because it was working on a competing airplane. The group sued Boeing for fraudulent inducement and breach of fiduciary duty. The trial court granted summary judgment for Boeing. The group appealed to the Tenth Circuit.

Rule of Law

Issue

Holding and Reasoning (Mechem, J.)

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