Justia Contracts Opinion Summaries

In 2004, Harmon contracted to provide Chicago Bulls rookie Gordon with financial and consulting services for the “duration of [his] playing career,” but outlining a compensation arrangement only for the length of Gordon’s rookie contract with the Bulls, which ended in 2008. In 2007, Gordon became dissatisfied with Harmon’s services, based in part on what he viewed to be a breach of a fiduciary duty relating to a bad investment, and prematurely terminated the agreement. Gordon sued first, claiming Harmon had breached a promissory note between the parties and had breached his fiduciary duties. Harmon asserted counterclaims for breach of the agreement and tortious interference with prospective business advantage. The district court dismissed Harmon’s counterclaims. Harmon refiled his breach of contract claim in Illinois state court and also alleged malicious prosecution, abuse of process, and tortious interference with prospective business advantage. After Gordon removed the case to federal court, the district court ruled in favor of Gordon, concluding that the parties had intended their agreement to last only for the length of Gordon’s rookie contract. The Seventh Circuit affirmed. View "Harmon v. Gordon" on Justia Law

Remark produced a distinctive series of television commercials for radio stations known as the “remarkable mouth” or “hot lips” commercials. The U.S. Copyright Office issued a copyright for a version of this commercial in 1980. The original holder of the copyright assigned it to Remark, which registered it with the Copyright Office in 2002. WADL, a Detroit television station, broadcast two commercials that resemble the copyright. After the commercials aired, Remark sent a cease-and-desist letter to the producer, Adell. After some negotiation, the parties agreed that $50,000 would settle Remark’s claims. Remark drafted an agreement, and Adell produced a revised version. Remark’s counsel e-mailed Adell’s counsel saying that Remark agreed to the changes. Adell forwarded a final version. Remark signed and returned the originals, but Adell never signed the agreement. It instead retained new counsel and for the first time balked at the $50,000 figure, offering to settle for a more “reasonable” amount. Remark filed suit. The district court granted Remark summary judgment but denied its request for attorney’s fees. The Sixth Circuit affirmed. View "Remark, LLC v. Adell Broad. Corp." on Justia Law

Retro Television Network appealed the district court's dismissal of its claims against appellees, Luken and Retro Television, under Rule 12(b)(6). In 2005, Equity entered into an intellectual property agreement (IPA) with Retro Television Network. Retro Television Network subsequently sued appellees seeking royalty payments and an accounting under the IPA. Because Retro Television Network failed to allege any facts that would make Luken liable for Equity's obligations under the IPA, the district court properly dismissed its claims against Luken. The court also held that the district court did not abuse its discretion in awarding attorneys' fees. View "Retro Television Network, Inc. v. Luken Communications LLC, et al" on Justia Law

In 2005, Forest Park formulated a concept for a television show called "Housecall," in which a doctor, after being expelled from the medical community for treating patients who could not pay, moved to Malibu, California, and became a concierge doctor to the rich and famous. Forest Park created character biographies, themes, and storylines, which it mailed to Sepiol, who worked for USA Network. Initial discussions failed. A little less than four years later, USA Network produced and aired a television show called "Royal Pains," in which a doctor, after being expelled from the medical community for treating patients who could not pay, became a concierge doctor to the rich and famous in the Hamptons. Forest Park sued USA Network for breach of contract. The district court held that the claim was preempted by the Copyright Act, 17 U.S.C.101, and dismissed. The Second Circuit reversed. Forest Park adequately alleged the breach of a contract that included an implied promise to pay; the claim is based on rights that are not the equivalent of those protected by the Copyright Act and is not preempted.

When a dispute arose regarding certain services Janice Karman, plaintiff, provided in connection with the movie, "Alvin and the Chipmunks, The Squeakquel," plaintiffs (Karman and Bagdasarian Productions) filed this action. Fox moved to stay the case and to refer the dispute to a referee as the parties' Purchase/Producer Agreement-Literary Material provided. The district court granted the motion and plaintiffs brought this interlocutory appeal to contest the reference. The court concluded that the district court's order was not final, plaintiffs have not been put "out of court" by the order, and the collateral order doctrine was inapplicable because the decision to refer could be reviewed and, if incorrect, later remedied by the court. As such, the appeal was premature and the court lacked jurisdiction over it under 28 U.S.C. 1291.

Plaintiff, Jeremy Mayfield, a professional race car driver, appealed the district court's dismissal of his complaint against NASCAR for conduct arising out of a positive drug test. Plaintiff filed suit against defendants, asserting claims for defamation, violation of North Carolina's disability statute, unfair and deceptive trade practices, breach of contract, and negligence, when one of the defendants, Brian France, held a press conference where he indicated that plaintiff had been suspended because he took a "performance enhancing" or "recreational" drug. The court found that the district court properly dismissed the case and there was no abuse of discretion in denying plaintiff's motions to reconsider and to amend. Accordingly, the court affirmed the judgment.

This appeal stemmed from an action filed by nine professional football players and one prospective football player (Players) against the National Football League and its 32 separately-owned clubs (NFL or League). On March 11, 2011, a collective bargaining agreement between the League and a union representing professional football players expired and the League made known that if a new agreement was not reached before the expiration date, then it would implement a lockout of players, during which athletes would not be paid or permitted to use club facilities. The Players, aware of the League's strategy, opted to terminate the union's status as their collective bargaining agent as of 4:00 p.m. on March 11, just before the agreement expired. Later that day, the Players filed an action in the district court alleging that the lockout planned by the League would constitute a group boycott and price-fixing agreement that would violate Section 1 of the Sherman Antitrust Act, 15 U.S.C. 1, and alleging other violations of the antitrust laws and state common law. The League proceeded with its planned lockout on March 12, 2011 and the Players moved for a preliminary injunction in the district court, urging the court to enjoin the lockout as an unlawful group boycott that was causing irreparable harm to the Players. The district court granted a preliminary injunction and the League appealed. The court held that the injunction did not conform to provisions of the Norris-LaGuardia Act (Act), 29 U.S.C. 101 et seq., where Section 4(a) of the Act deprived a federal court of power to issue an injunction prohibiting a party to a labor dispute from implementing a lockout of its employees. Therefore, the court vacated the district court's order and declined to reach the other points raised by the League on appeal.

Plaintiffs sued defendants alleging copyright infringement, breach of implied contract, breach of confidence, and several other causes of actions where defendants produced a television series on the Sci-Fi Channel based on plaintiffs' materials. At issue was whether the district court properly dismissed plaintiff's contractual claims on the basis that the claims were preempted by copyright law. The court reversed and held that copyright law did not preempt a breach of implied contract claim where plaintiffs alleged a bilateral expectation that they would be compensated for use of the idea, the essential element of a Desny v. Wilder claim that separated it from preempted claims for the use of copyrighted material. The court also held that the breach of confidence claim was not preempted by copyright law where the claim protected the duty of trust or confidential relationship between the parties, an extra element that made it qualitatively different from a copyright claim. The court also held that the complaint sufficiently alleged facts to make out a claim for breach of implied contract and breach of confidence.