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Contracts Keyed to Knapp
Reier Broadcasting Company, Inc. v. Kramer
Facts
A broadcasting company, Reier Broadcasting Company, Inc. (Reier) (P), had exclusive rights to broadcast certain university athletic events until 2003. The company also entered into an employment contract for exclusive rights with Kramer (D), who was the university’s head football coach. The employment contract with Kramer (D) was to terminate in 2004 and also provided that Kramer (D) was not to provide similar services to any other broadcaster.On the expiration of the contract between the university and Reier (P) in 2002, the university sought bids from other broadcasters. Part of the requirements the university specified in its advert was that the successful offeror to broadcast interviews and conduct a commentary program with Kramer (D). This particular clause was noticed by Reier (P) and this contravened the Reier-Kramer’s employment agreement. Request to change the proposal was turned down by the university, who later awarded the contract to Clear Channel Communication (Clear Channel) and directed Kramer (D) to provide interviews to Clear Channel despite the exclusivity clause in his contract with Reier (P).A temporary restraining order (TRO) and injunction was filed against Kramer (D) by Reier (P) to prevent Kramer (D) from providing services to Clear Channel. The prayer of Reier (P) on the temporary restraining order was granted but his prayer for the conversion to an injunction was denied by the court on the ground that the state statute prohibited the issuance of an injunction to prevent the breach of a contract, the performance of which would not be specifically enforced. The move of Reier (P) to change or amend the court’s judgment was denied but the state’s highest court granted review.
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