Not a Lexis Advance subscriber? Try it out for free.

Rainbow Travel Service, Inc. v. Hilton Hotels Corp.

United States Court of Appeals for the Tenth Circuit

February 16, 1990, Filed

Nos. 88-1730, 88-1731


 [*1235]  BROWN, District Judge.

In the district court, plaintiff Rainbow Travel Service ("Rainbow") won a jury verdict against the defendants for breach of contract and fraud. The defendants-appellants argue that the district court should have dismissed the action for lack of personal jurisdiction. Additionally, appellants contend that the court committed numerous errors in the admission of evidence and in the instructions to the jury. In a cross-appeal, Rainbow argues that it should be awarded prejudgment interest on the damage award. For the reasons set [**2]  forth herein we affirm the judgment of the district court with the exception of the award of damages for breach of contract.

I. Facts.

The Fontainebleau Hilton is a deluxe resort hotel in Miami Beach, Florida. The hotel is operated by the defendant Hilton Hotels, Inc. ("Hilton"), a Delaware corporation, on behalf of the hotel's owner, defendant Hotelerama Associates, Ltd., a Florida limited partnership. Plaintiff Rainbow is a travel agency with its principal place of business in Oklahoma City, Oklahoma.

 [*1236]  There are two Hilton hotel franchises operating in Oklahoma City, Oklahoma. The franchisor of these hotels is Hilton Inns, Inc., which is a wholly owned subsidiary of the defendant Hilton Hotels Corporation. Reservations can be made at any Hilton hotel through these franchises. Also, Hilton maintains an "800 number" in Oklahoma for taking reservations.

In recent years, the Fontainebleau Hilton has advertised in many travel publications, including the Official Hotel and Resort Guide, the Hotel and Travel Index, the Travel Agent's Hotel Sales Guide, and the Directory of Incentive Travel International. These publications are distributed throughout Oklahoma and other [**3]  states. The Fontainebleau advertises in these publications in order to solicit the business of travel agents.

In the spring of 1986, Rainbow began organizing several tour packages for Oklahoma football fans who wanted to attend a University of Oklahoma versus University of Miami football game. The game was scheduled for September 26, 1986, in Miami, Florida. Rainbow initially contacted the Fontainebleau concerning the possibility of reserving hotel rooms for Rainbow's groups. After telephone calls and correspondence between the parties, the Fontainebleau sent Rainbow two contracts which called for the hotel to reserve one hundred and five rooms for Rainbow on the weekend of September 27, 1986. The second of these contracts, which is at issue in this case, provided that forty-five rooms were to be reserved for Rainbow on September 26, 1986. Rainbow executed the agreements and returned them to the Fontainebleau. In June of 1986, the Fontainebleau confirmed Rainbow's reservation by mail and requested prepayment for one night for Rainbow's groups. In response, Rainbow sent a partial payment of over $ 6,000.00. The Fontainebleau sent another confirmation in August and requested the remainder [**4]  of the first night's payment. Rainbow then sent a final customer list and the remainder of the requested payment. The payments were made by checks drawn on Rainbow's account in Oklahoma.

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

896 F.2d 1233 *; 1990 U.S. App. LEXIS 2285 **; 29 Fed. R. Evid. Serv. (Callaghan) 1119

RAINBOW TRAVEL SERVICE, INC., Plaintiff-Appellee/Cross-Appellant, v. HILTON HOTELS CORPORATION and HOTELERAMA ASSOCIATES, LTD., Defendants-Appellants/Cross-Appellees

Prior History:  [**1]   Appeal from the United States District Court for the Western District of Oklahoma, D.C. No. CIV-86-2525-R.


hotel, rooms, reservations, good will, damages, travel, customers, district court, contacts, negotiations, solicitation, letters, personal jurisdiction, breach of contract, dishonored, contracts, driver, present evidence, forum state, percent, resident, partial, guests

Civil Procedure, Jurisdiction, Jurisdictional Sources, Constitutional Sources, General Overview, In Rem & Personal Jurisdiction, In Personam Actions, Standards of Review, Substantial Evidence, Sufficiency of Evidence, Appeals, Contracts Law, Measurement of Damages, Foreseeable Damages, Jury Trials, Jury Instructions, Evidence, Burdens of Proof, Clear & Convincing Proof, Torts, Business Torts, Fraud & Misrepresentation, Trials, Province of Court & Jury, Remedies, Judgment Interest