Contracts Keyed to Farnsworth
Contracts Keyed to Knapp
Contracts Keyed to Murphy
Contracts Keyed to Calamari
The Agreement Process
Moral Obligation and Consideration
Promissory Estoppel
Parol Evidence and Interpretation
Capacity of Parties
Avoidance for Misconduct or Mistake
Conditions, Performance and Breach
Impossibility or Impracticability, and Frustration
Enforcement Remedies
Protectors Insurance Service, Inc. v. United States Fidelity & Guaranty Company 132 F.3d 612 (10th Cir. 1998)
Hadley v. Baxendale 156 Eng. Rep. 145 (1854)
Mader v. Stephenson 552 P.2d 1114 (Supreme Court of Wyoming, 1976)
S.J. Groves & Sons Co. v. Warner Co. 576 F.2d 524 (1978)
Gruber v. S-M News Co. 126 F.Supp. 442 (S.D.N.Y. 1954)
Anglia Television v. Reed 3 All E.R. 690 (House of Lords 1971)
Ballard v. El Dorado Tire Co. 512 F2d 901 (5th Cir. 1975)
Chronister Oil Co. v. Unocal Refining and Marketing 34 F.3d 462 (7th Cir. 1994)
National Controls, Inc. v. Commodore Business Machines, Inc. 163 Cal.App.3d 688, 209 Cal.Rptr. 636 (Court of Appeal, First District, Division 3, California 1985)
Donovan v. Bachstadt 91 N.J. 434, 453 A.2d 160 (N.J. 1982)
Jacob & Young, Inc. v. Kent 230 N.Y. 239, 129 N.E 889 (N.Y. 1921)
Emery v. Caledonia Sand and Gravel Co., Inc. 117 N.H. 441, 374 A.2d 929 (Supreme Court of New Hampshire, 1977)
Patton v. Mid-Continent Systems, Inc. 841 F.2d 742 (7th Cir. 1988)
Wassenaar v. Panos 111 Wis.2d 518, 331 N.W. 2d 357, 40 A.L.R.4th 266(Supreme Court of Wisconsin)
Kvassay v. Murray 15 Kan.App. 2d 426, 808 P.2d 896 (Court of Appeals of Kansas 1991)
Lake River Corp. v. Carborundum Co. 769 F.2d 1284 (7th Cir. 1985)
AFLAC, Inc. v. Williams 264 Ga. 351, 444 S.E.2d 314 (1994)
Wedner v. Fidelity Security Systems, Inc. 228 Pa.Super. 67, 307 A2d 429
Oliver v. Campbell 43 Cal.2d 298, 273 P.2d 15 (Supreme Court of California, In Bank. 1954)
Centex Homes Corp. v. Boag 128 N.J. Super. 385, 320 A.2d 194 (N.J. Super. Ch. 1974)
Laclede Gas Co. v. Amoco Oil Co. 522 F. 2d 33
Northern Indiana Public Service Co. v. Carbon County Coal Co. 799 F.2d 265 (7th Cir. 1986)
American Brands, Inc. v. Playgirl, Inc. 498 F.2d 947 (4th Cir. 1974)
Beverly Glen Music, Inc. v. Warner Communications, Inc. 178 Cal. App. 3d 1142, 224 Cal. Rptr. 260 (Court of Appeal, Second District, Division 4, California, 1986)
Schlegal v. Moorhead 170 Mont. 391, 553 P.2d 1009 (Supreme Court of Montana, 1976)
Third Party Beneficiaries
Assignment and Delegation
The Statute of Frauds
Discharge of Contracts
Bargains That Are Illegal or Against Public Policy
Contracts Keyed to Dawson
Contracts Keyed to Ayres
Contracts Keyed to Barnett
Contracts Keyed to Epstein
Contracts Keyed to George
Contracts Keyed to Jimenez
Contracts Keyed to Kuney
Contracts Keyed to Kunz
Contracts Keyed to Blum
Contracts Keyed to Crandall
Contracts Keyed to Burton
Contracts Keyed to Frier
Contracts Keyed to Fuller
Contracts Keyed to Murray
Contracts Keyed to Scott
Contracts Keyed to Summers
Contracts Keyed to McCaulay
Contracts Keyed to McGovern
Contracts > Contracts Keyed to Calamari > Enforcement Remedies
American Brands, Inc. v. Playgirl, Inc.
Citation. 498 F.2d 947 (4th Cir. 1974)
Citation498 F.2d 947 (4th Cir. 1974)
Brief Fact Summary. A dispute arose between a magazine publisher and an advertiser. The advertiser alleged that the publisher breached their contract by not allowing them to advertise on every back cover of the publisher's magazine into perpetuity.
Synopsis of Rule of Law. Equitable relief is only available when a party demonstrates legal remedies are insufficient, there is a probability of success on the merits and the potential of irreparable harm.
Points of Law - Legal Principles in this Case for Law Students.
A party seeking a preliminary injunction must show (1) irreparable harm, and (2) either (a) a likelihood of success on the merits or (b) sufficiently serious questions going to the merits of the case to make them a fair ground for litigation, and a balance of hardships tipping decidedly in its favor.
View Full Point of Law
Facts. The Plaintiff, American Brands, Inc. (the "Plaintiff"), entered into a contract on January 26, 1973 with the Defendant, Playgirl, Inc. (the "Defendant"), to advertise on the back cover of the Defendant's Magazine for a period of 12 months. Certain language in the contract seemed to say that the Plaintiff had the right to advertise on the back cover of the Defendant's magazine for as long as they wanted or into perpetuity, and could cancel the contract whenever they wanted without penalty. The Defendant informed the Plaintiff in two letters dated September 25, 1973 and December 3, 1973, it was against their policy to "afford and advertiser 'a position of protection in perpetuity' " and that it wished to diversify its back cover. The Plaintiff sought injunctory relief from the district court. The district court denied the relief saying that a damage remedy is appropriate and that the Plaintiff could advertise on the back cover of another periodical and calculate damages accordingly.
Issue. Was the district court's denial of a preliminary injunction appropriate?
Held. Yes. First, there is nothing in the record demonstrating that the harm cannot be remedied via damages, i.e. there is a remedy at law. Further, the Plaintiff is obligated to mitigate its damages. There is no indication in the record why the Plaintiff did not attempt to advertise in another magazine. Additionally, nothing in the record shows that the Plaintiff prepared its advertisements specifically for the Defendant's audience. Moreover, the court observes "[i]f it had been shown that such advertising space is not readily available because of commitments to other national advertisers, American might well have established a case for equitable intervention, but the record before us is barren of any such proof." Since they did not make the requisite showing, equitable relief is not appropriate. Second, as the trial court recognized, the Plaintiff has not demonstrated that they will succeed on the merits. Finally, there is not indication that the Plaintiff will suffer irreparable injury to its commercial good will.
Discussion. Equitable relief is only available when legal relief will not resolve a dispute. A preliminary injunction is one of many kinds of equitable relief.
Study Assets: Introduction to Damages and Expectation Damages
Topic Video
Course Big Picture Video
Hundreds of to-the-point Topic videos
Thousands of Real-Exam review questions
Exam Prep Workshop SeriesTM