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Contracts Keyed to Dawson
Karma International v. Indianapolis Motor Speedway
Citation:
938 F.3d 921 (2019)Facts
In early 2016, Karma International, a licensee of Maxim magazine, negotiated with Indianapolis Motor Speedway to host a Maxim-branded party during the 100th running of the Indianapolis 500. The March 2016 agreement required the Speedway to provide “marketing support via social channels and dedicated e-mail to database,” while Karma promised to promote race-weekend activities with a “banner ad on Maxim.com” and marketing support via Maxim social channels. The Speedway sent four promotional emails in May 2016 to various segments of its database. Karma, however, never ran the promised banner advertisement on Maxim.com nor used Maxim’s social media to promote race events. The Maxim party took place as scheduled but was financially unsuccessful, with Karma spending $635,855.71 but generating only $215,690.39 in revenue. Of the 1,787 attendees, only 92 purchased full-price tickets. Karma sued the Speedway, claiming it failed to promote the party as agreed and seeking $817,500 in damages based on alleged conversations with Speedway officials who suggested the party would generate $1 million in gross revenue.
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