DENVER — Jurors unanimously found Tellurian founder Charif Souki breached an agreement he made with an investor and awarded $39 million in damages after deliberating just over three hours in snowy Denver Friday afternoon.
The five-day jury trial commenced Monday in the lawsuit investor Chris Parker filed against Souki, in which Parker claimed Souki made a guarantee regarding his capital of Tellurian shares in a text message.
In the lawsuit, Parker alleged a 2019 text message from Souki constituted a binding contract. It reads: “Please keep this text. I will guaranty [sic] your capital by Dec. 2020. I’ll make up any capital deficiency you have at that date.”
Parker made two breach of contract claims. First, regarding the alleged 2019 text message, and second, on the 2021 draft contract that he testified Souki orally agreed to extend the deadline and add an interest rate. He only prevailed on the 2019 breach of contract claim.
The jurors did not find breach of contract on the alleged 2021 agreement, fraudulent inducement, unjust enrichment or promissory estoppel on either of the alleged 2019 and 2021 agreements.
U.S. District Judge William Martinez made the promissory estoppel and unjust enrichment claims advisory, meaning he will ultimately decide them.
Craig Wenner of Boies Schiller Flexner told the jurors in his closing argument that Souki made a promise to Parker.
“The case is that simple. Hold Mr. Souki to his word,” Wenner said.
He told jurors Souki’s entire world depended on the stock price of Tellurian, and Parker was unaware of that. He argued the guarantee was Souki’s attempt to keep the stock price up and his finances together.
Wenner stressed that Souki did not have anyone testify to his character or why he sent the text to Parker, and reminded the jury that his client, Parker, had several people testify to his character and verified Parker’s understanding of the text.
In his presentation, Wenner showed a line graph depicting three points at which Parker could have sold his shares and made a profit.
Tim McConn of Yetter Coleman, who represents Souki, pointed out in his closing argument that Parker’s testimony, in which the investor said the alleged notice of intent to sell his shares in the filed complaint, was false. He also reminded jurors of opening statements made by counsel for Parker, characterizing the case as one about a broken promise.
“If they start the case with a lie, you should be skeptical of every word they say,” McConn said to the jurors.
He said “actions are what matter” and that Parker had gotten buyer’s remorse and wanted to use a six-month-old text to get Souki to pay his tab.
McConn further noted that Parker already had 26 million shares of Tellurian when he and Souki met in 2018.
“Text messages are casual. Test messages can be misinterpreted. Context matters,” McConn said.
McConn displayed WhatsApp messages from Parker inquiring about a structured product, which Souki testified was the reason for asking how many shares Parker had. The messages were after the alleged 2019 guarantee.
He also said that the number of people who had testified about Parker’s character didn’t make a difference.
“These are not objective people,” McConn said.
Matthew Schwartz of Boies Schiller Flexner argued in rebuttal that the text message wasn’t ambiguous. He told the jurors it was up to them whether they believed the text was a guarantee or if they believed it was about a structured product.
“You should take him at his word and hold him to it,” Schwartz said.
After closing arguments, the eight-member jury was handed the case and had 17 questions to answer.
McConn, while noting it was a partial win for him and his client after defeating most of the claims, said the verdict was disappointing.
“We respect the jury’s decision and are grateful for the court’s time,” McConn said.
McConn said they are determining whether to appeal the case across the street to the U.S. Court of Appeals for the Tenth Circuit.
“We thank the court and the jury for their careful attention. Charif Souki told Chris Parker in black and white that he would guarantee Mr. Parker’s capital investment in Tellurian, and now, as a result of today’s verdict, he will finally have to make good on that promise,” Schwartz said.
Lauren Goldman, Jonathan Schiller, Jeffrey Waldron and Claire Greenberg of Boies Schiller Flexner are representing Parker.
Souki is also represented by Tyler Young, Daniel Nightingale and Ayla Syed of Yetter Coleman and Melissa Romero and Marissa Ronk of Wheeler Trigg O’Donnell.
The case is Christopher Parker, Red Mango Enterprises Ltd. v. Charif Souki, 1:22-cv-165.