Judge Harold Baer

Interpreting the parties’ contract in CenturyLink’s favor, district court granted CenturyLink judgment on the pleadings. At later mediation to resolve damages, the parties were invited to brief the court on whether DISH Network could modify “payment standards” in schedule 9.8.1 of their contract so as to unilaterally implement a 60-month cap on certain monthly incentive (MI) payments it owed CenturyLink. Holding that DISH could not unilaterally amend schedule 9.8.1 to impose a 60-month cap, the court ordered DISH to continue paying CenturyLink monthly incentive payments consistent with its July 2012 order. Ruling that prejudgment interest was due from the due dates of missed MI payments, the court found DISH was owed at total of $13.46 million, which included the MI payments, prejudgment interest and mediated attorney fees of $750,000. Among other things the court determined that §12.1(i) of the parties’ contract—which provides that CenturyLink may terminate their contract if DISH changes schedule 9.8.1′s payment procedures in a way materially adverse to Century Link’s reasonably anticipated economic benefits under the contract—acted as a check on DISH’s abuse of its unilateral right to modify schedule 9.8.1.