Qwest Communications International, Inc. Qwest Communications Corporation And SP Construction Services, Inc./ AT&T Corp. AT&T Communications of the Southwest, Inc. CK Directional Drilling v. AT&T Corp. AT&T Communications of the Southwest, Inc./Qwest Communications International Inc. Qwest Communications Corporation SP Construction Services, Inc. C&S Directional Boring Company, Inc. CK Directional Drilling
This case involves an appeal from a judgment awarding economic and exemplary damages to AT&T for fiber-optic cable damage caused by Qwest and its subcontractors, CK Directional Drilling and C&S Directional Boring Company, Inc. The core dispute arose from three instances in 1997 where AT&T's cables were severed during Qwest's fiber-optic network construction. Qwest, CK, and AT&T all appealed the district court's final judgment, challenging various aspects, including malice findings, the validity of a Rule 11 agreement, damage calculations, and vicarious liability. The appellate court affirmed the findings of malice against Qwest and C&S, and Qwest's liability for its subcontractors' actions. However, it reversed the breach-of-contract damages awarded to AT&T due to insufficient evidence and upheld the district court's calculation of exemplary damages and prejudgment interest.