CHICAGO-United States Cellular Corp. released a report confirming that a Washington court Feb. 5 ruled in its favor concerning a limited partnership in Seattle.
U.S. Cellular filed a lawsuit in September claiming U S NewVector Group had breached its duties as a general partner in the Seattle limited partnership by transferring its share of the partnership to AirTouch Cellular. According to Lisa Bowersock of U S West, the transfer is part of a phased merger of U S West and AirTouch’s domestic cellular operations announced in July 1994. The limited partnership consists of U S West with 83 percent, U.S. Cellular with 7 percent, GTE Corp. and Whidbey Island Telephone Co.
The court ruled U S West’s actions were an abdication of its responsibilities as general partner. Bowersock said U S West is planning an appeal, and a motion for a stay of the ruling is in the works. “We believe the court overlooked serious issues,” she said. “It misinterpreted our rights and responsibilities under the partnership agreement.”
U.S. Cellular said the ruling gives the remaining partners the right to buy all of U S West’s partnership interests. Limited partners have 90 days to agree on a new general partner for the Seattle partnership, the company said.
In May, U S West adopted the AirTouch name in Seattle, but AirTouch never took control of the property. Until a final decision is reached, U S West will control the property.
