8th Circuit Rejects Daredevil's ZTE Fraud Suit
The 8th U.S. Circuit Court of Appeals upheld dismissal of a claim by Daredevil against ZTE, after a Florida arbiter addressed a lawsuit charging “breach of contract, fraud, and unjust enrichment.” Daredevil had sued subsidiary ZTE USA in Florida and…
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an “arbitrator ultimately denied each of Daredevil’s claims,” said an order posted Friday in docket 19-3769. Daredevil then reopened the case in the Eastern District of Missouri, which was denied by a lower court citing the Florida arbitration. “The district court correctly concluded that claim preclusion applies here,” the 8th circuit ruled: “Daredevil’s current and previous claims share identity of the parties and identity of the cause of action.” ZTE didn’t comment. Daredevil had contracted with ZTE in several areas to provide gear and technology as it sought to build a wireless network, but over time “the parties’ business relationship broke down,” which led to allegations of “breach of contract, rescission, and unjust enrichment,” the court said. Deredevil alleged that because of ZTE's action in Missouri, it couldn't develop the St. Louis market.