Contracts Keyed to Murray
Arbitron, Inc. v. Tralyn Broadcasting, Inc.
Facts
Arbitron, Inc. (Plaintiff) entered into an agreement with Tralyn Broadcasting, Inc. (Defendant), under which Plaintiff would allow Tralyn’s single radio station to use Plaintiff’s listener data reports, and Tralyn would pay Plaintiff a monthly licensing fee. The agreement included an escalation clause, under which Plaintiff could increase the monthly license fee if Tralyn, or its successors, purchased or began to control additional radio stations. Tralyn was purchased by JMD, Inc. (Defendant), which controlled additional radio stations. Plaintiff increased the monthly license fee to reflect JMD’s additional stations, but JMD refused to pay. Plaintiff sued Tralyn and JMD for breach of contract. The district court granted summary judgment for JMD, finding the escalation clause impermissibly vague because it did not provide any basis for determining the new monthly license fee. Plaintiff appealed.
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