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Contracts Keyed to Whaley
Dick Broadcasting Company, Inc. of Tennessee v. Oak Ridge FM, Inc.
Citation:
Supreme Court of Tennessee, 2013. 395 S.W.3d 653.Facts
Dick Broadcasting Company, Inc. (DBC) (Plaintiff) and its related companies were the licensees for various radio stations. It entered into 3 separate, but related contracts contracts with defendants. Oak Ridge FM, Inc. and ComCon Consultants (Defendants) entered into 3 contracts with DBC relating to DBC’s acquisition of the programming rights and equipment for a radio station licensed by Oak Ridge FM. Only DBC’s contract with Oak Ridge FM, which gave DBC a right of first refusal to purchase the radio station’s assets, contained a clause requiring the written consent of Oak Ridge in the event that DBC wished to assign its rights, interests, and obligations under the agreement to another entity. After the formation of such agreements, DBC entered into an Asset Purchase Agreement with Citadel Broadcasting Company, whereby Citadel acquired most of DBC’s assets, including DBC’s agreements with defendants. Defendants refused to consent to the assignment of its contracts.
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