Justia Contracts Opinion Summaries

A 1988 consent order settled a suit brought by plaintiff against past and then present members of the rock band known as Lynyrd Skynyrd, seeking to clarify each party's rights with respect to the use of the name "Lynyrd Skynyrd" and their rights to make films about the band and their own lives.In this case, the Second Circuit vacated the district court's judgment and vacated its permanent injunction prohibiting distribution of a film about the band and other related activities, holding that the terms of the consent order were inconsistent, or at lease insufficiently precise, to support an injunction. The court reasoned that, even though the injunction has allegedly been imposed as a result of private contract rather than government censorship, it nonetheless restrained the viewing of an expressive work prior to its public availability, and courts should always be hesitant to approve such an injunction. The court held that the injunction restricted the actions of an entity that was not a party to the contract that was alleged to be the source of the restriction; Cleopatra in this case. Furthermore, the film told a story about the history of the band, as well as the experience of Artimus Pyle with the band. The court held that provisions of a consent decree that both prohibit a movie about such a history and also permit a movie about such an experience were sufficiently inconsistent, or at least insufficiently specific, to support an injunction. View "Ronnie Van Zant, Inc. v. Cleopatra Records, Inc." on Justia Law

The Ninth Circuit reversed the district court's grant of summary judgment for Paramount in an action under section 301 of the Labor Management Relations Act. AFM filed suit alleging breach of Article 3 of the Basic Theatrical Motion Picture Agreement, a collective bargaining agreement, in connection with the motion picture, Same Kind of Different As Me, which was scored in Slovakia.The panel held that the district court misinterpreted Article 3 to apply only if a signatory producer employs the cast and crew shooting the picture; Article 3 functions as a work preservation provision that dictates when a signatory has to hire those musicians; and Article 3 applied when a signatory studio produces a motion picture and has authority over the hiring and employment of scoring musicians. The panel held that there was a disputed question of fact as to whether Paramount produced the movie and had sufficient authority over the hiring of scoring musicians such that Article 3 applied. Finally, the panel rejected Paramount's affirmative defense that Article 3 violated the National Labor Relations Act's "hot cargo" prohibition and reversed two of the district court's evidentiary rulings. View "American Federation of Musicians of the United States and Canada v. Paramount Pictures Corp." on Justia Law

Rooftops sells tickets to view Cubs games and other events at Wrigley Field from the roofs of buildings it controls. Chicago has an ordinance allowing the rooftop businesses. Before the 2002 season, the Cubs installed a windscreen above the outfield bleachers, obstructing the views from rooftop businesses and sued Rooftops, claiming misappropriation of Cubs’ property by charging fees to watch games.The parties settled by entering into the License Agreement running through 2023. Rooftops agreed to pay the Cubs 17% of their gross revenues in exchange for views into Wrigley Field. The Agreement contemplated Wrigley Field's expansion. In 2013, the Cubs released a mock‐up of its proposed renovation, showing that rooftop businesses would be largely blocked by the construction. The city approved the plan over objections. Rooftops claimed that Cubs’ representatives used the threat of blocking views and other “strong-arm tactics” as leverage to force a sale, and sued, alleging: attempted monopolization; false and misleading commercial representations, defamation, false light, and breach of the non‐disparagement provision; and breach of contract. The court denied Rooftops’ motion for a preliminary injunction. The Seventh CIrcuit affirmed its dismissal of monopolization claims because Major League Baseball’s antitrust exemption applies; Rooftops failed to establish a plausible relevant market; and the Cubs cannot be limited by antitrust law from distributing their own product. The contract's plain language did not limit expansions to Wrigley Field's seating capacity. View "Right Field Rooftops, LLC v. Chicago Cubs Baseball Club, LLC" on Justia Law

In 2010, the Indianapolis Colts NFL professional football team established an online marketplace for owners of season tickets to transfer their season ticket rights upon payment of a fee equal to 30 percent of the sale price of the tickets. Frager bought 94 season tickets in 2015, believing that he would be able to renew those season tickets in 2016. The Colts refused to give him season tickets for 2016. He sued, claiming conversion. The Seventh Circuit affirmed the dismissal of the suit. A season-ticket holder has no right to future season tickets unless the Colts sold them that right in the first place, and the Colts ticket contract forecloses that possibility. Frager had a reasonable expectation that he would be able to renew his season tickets for 2016. The fact that purchasers of season tickets are willing to pay a 30 percent transfer fee in the online marketplace indicates that the expectation of renewal added to the salable value of season tickets, but given the wording of his contract with the Colts it was merely “a speculation on a chance, not a legal right.” View "Frager v. Indianapolis Colts, Inc." on Justia Law

Champion Pro filed suit against Impact Sports and others, principally alleging that Impact Sports engaged in deceptive and unfair practices in violation of the North Carolina Unfair and Deceptive Practices Act (UDTPA), N.C. Gen. Stat. 75–1.1, by their recruitment of a football player, Robert Quinn. The court affirmed the district court's denial in part of Champion Pro's motion for sanctions based on the alleged spoliation of evidence and grant of Impact Sports motion for summary judgment on all claims. The court agreed with the district court that Champion Pro's allegations, even when assumed to be true, are insufficient to establish a violation of the UDTPA. Likewise, Champion Pro's civil conspiracy claim fails as a matter of law. Finally, Champion Pro's claim that the district court erred in failing to award sanctions in the form of an adverse jury instruction is moot. Accordingly, the court affirmed the judgment. View "Champion Pro Consulting Group v. Impact Sports Football" on Justia Law

In 2013, the U.S. Soccer Team Players Association disapproved the US Soccer Federation’s proposed tequila poster advertisement, which contained player images. The Federation issued a notice, declaring that the collective bargaining agreement/uniform player agreement (CBA/UPA) did not require Players Association approval for use of player likenesses for six or more players in print creative advertisements by sponsors. The Players Association filed a grievance and demanded arbitration, arguing that the CBA/UPA did require approval, based on the past practice of the parties. The arbitrator issued an award in favor of the Players Association. The district court confirmed the award. The Seventh Circuit reversed. The contractual provisions are clear and unambiguous, establishing that the parties contemplated and anticipated the use of player likenesses for six players or more and agreed only to “request, but not require” a sponsor contribution to the applicable player pool for advertisements of the type at issue. No other terms that contradict this “request, but not require” condition. View "United States Soccer Fed'n Inc. v. United States Nat'l Soccer Ass'n" on Justia Law

Appellants purchased tickets to Super Bowl XLV and were either displaced from their seats, relocated, or had an obstructed view of the field. The majority of the affected ticketholders settled with the NFL. However, appellants in this instance elected to file suit, alleging various claims relating to breach of contract and fraud. Most of appellants’ claims were dismissed before trial, and class certification was denied. Seven individual appellants went to trial against the NFL and prevailed on breach of contract, but not on fraudulent inducement claims. The court concluded that, because appellants have presented no authority supporting that a third-party vendor with limited responsibility is also responsible for the performance of the express ticket terms, appellants’ argument that the Cowboys are liable for their tort claims fails; an inference of fraudulent inducement is untenable; and the economic loss rule bars appellants' claims. The court also concluded that the contract claims failed where the unambiguous term of the contract entitling ticketholders to “a spectator seat for the game” was not breached by an obstructed view of the video board. Furthermore, the fraudulent inducement claims failed because appellants were not fraudulently induced to buy Super Bowl tickets thinking they would see the game on the video board. As to class certification, the court concluded that the district court did not abuse its discretion in refusing to certify the Displaced Class, the Relocated Class, and the Obstructed-View Class. Finally, the court concluded that the district court did not abuse its discretion in declining to give appellants' proposed jury instruction. Accordingly, the court affirmed the judgment. View "Ibe v. Jones" on Justia Law

Plaintiff appealed the trial court's grant of summary judgment in favor of James Cameron and Lightstorm Entertainment, Inc. on claims that defendants fraudulently expressed interest in developing plaintiff’s science fiction story KRZ and used parts of that story in Cameron’s 2009 film Avatar. Avatar is a science fiction film set in the future on Pandora, a moon of a fictional gas giant planet, occupied by an indigenous species of humanoids called Na’vi and by humans affiliated with the Resources Development Administration, and its “Sec-Ops” security force. KRZ takes place in the future mostly on Europa, an ice-covered moon of Jupiter. KRZ tells the story of a corporate assassin who works for the Malloc super-corporation, which harvests organisms from ocean vents beneath Europa’s icy surface. To do so, the corporation uses humans as well as organic-bionic hybrid robots called “KRY’s,” which have “Y’s” on their foreheads and “limitation chips” that block emotions and free will. KRZ is a robot with a smaller limitation chip than KRY’s and is self-aware and self-motivated. The court concluded that plaintiff's contract and fiduciary duty claims failed because there was no similarity between the projects as a matter of law; plaintiff's fraud claims fail because he has not offered evidence raising a triable issue of material fact; and plaintiff's appeal of the trial court's denial of his motion for discovery sanctions is moot. Accordingly, the court affirmed the judgment. View "Ryder v. Lightstorm Enter." on Justia Law

The adult children and heirs of songwriter Terry Gilkyson, a member of the band The Easy Riders, filed suit against Disney, alleging that Disney had breached its contractual obligation to pay royalties in connection with the licensing or other disposition of the mechanical reproduction rights to Gilkyson’s songs. The trial court dismissed the lawsuit after sustaining Disney’s demurrer to the first amended complaint without leave to amend, ruling the Gilkyson heirs’ causes of action were barred by the applicable statutes of limitations. The court concluded that the trial court erred in sustaining the demurrer pursuant to the statute-of-limitations bar where the continuous doctrine applies to plaintiffs' contract claims. In this case, Disney’s obligation to pay royalties based on its licensing or other disposition of the mechanical reproduction rights to Gilkyson’s songs was unquestionably a continuing one. While portions of the Gilkyson heirs’ contract claim are undoubtedly time-barred, the action is timely as to those breaches occurring within the four-year limitations period preceding the filing of the original lawsuit. Accordingly, the court reversed and remanded with directions. View "Gilkyson v. Disney Enter." on Justia Law

The Institute filed the underlying complaint, alleging claims for unjust enrichment, right of publicity, and misappropriation under Michigan common law for Target’s sales of all items using the name and likeness of Rosa Parks. The district court dismissed the complaint. The court concluded that Target's use of Rosa Parks’s name and likeness in the books, movie, and plaque is necessary to chronicling and discussing the history of the Civil Rights Movement. These matters are quintessentially embraced and protected by Michigan’s qualified privilege. Michigan law does not make discussion of these topics of public concern contingent on paying a fee. Therefore, all six books, the movie, and the plaque are protected under Michigan’s qualified privilege protecting matters of public interest. Accordingly, the court affirmed the judgment. View "Rosa and Raymond Parks Inst. for Self Dev. v. Target Corp." on Justia Law