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Contracts Keyed to Dawson
In re WorldCom, Inc.
Citation:
361 Bankr. 675.Facts
MCI entered into a 10 year endorsement agreement with Jordan licensing it to use his name, likeness, “other attributes,” and services to promote its telecommunications products and services. Additionally, Jordan made himself available 4 days a year for 4 hours per day to produce advertisements and for promotional appearances. Jordan received a $5 million signing bonus and was compensated $2 million annually. From 1995 to 2000, Jordan appeared in a number of ads for MCI. In 2002, MCI filed for Chapter 11 Bankruptcy and Jordan subsequently filed a Claim for $8 million in the bankruptcy (compensation for the remaining 4 years of the agreement). MCI argued that Jordan had a duty to mitigate his damages and his Claim should be reduced to $4 million. Jordan filed a motion for summary judgment arguing that MCI’s objections should be dismissed because (1) Jordan was a “lost volume seller“, (2) there is no evidence he could enter into a substantially similar agreement, and (3) he acted reasonably by not pursuing other endorsements.
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