Amigo Broadcasting, LP v. Spanish Broadcasting System, Inc.

521 F.3d 472, 27 I.E.R. Cas. (BNA) 758, 2008 U.S. App. LEXIS 5835, 2008 WL 725789
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 19, 2008
Docket06-50748
StatusPublished
Cited by36 cases

This text of 521 F.3d 472 (Amigo Broadcasting, LP v. Spanish Broadcasting System, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amigo Broadcasting, LP v. Spanish Broadcasting System, Inc., 521 F.3d 472, 27 I.E.R. Cas. (BNA) 758, 2008 U.S. App. LEXIS 5835, 2008 WL 725789 (5th Cir. 2008).

Opinion

BENAVIDES, Circuit Judge:

This case stems from the termination of an employment relationship between Appellant Amigo Broadcasting, LP (“Amigo”) and Appellees Joaquin Garza (“Garza”) and Raul Bernal (“Bernal”), and Garza and Bernal’s decision to enter into a new employment relationship with Appellee Spanish Broadcasting System, Inc. (“SBS”). Amigo seeks a reversal of the district court’s grant of judgment as a matter of law in favor of Appellees. Amigo contends that the district court erred in its ruling by finding that: (1) Amigo failed to produce legally sufficient evidence that Garza and Bernal breached their employment agreements with Amigo; (2) Amigo failed to produce legally sufficient evidence that SBS tortiously interfered with Amigo’s employment agreements with Garza and Bernal; and (3) Amigo withdrew its Lanham Act and misappropriation/unfair com *478 petition claims during the hearing on Appellees’ motions for judgment as a matter of law. For the following reasons, we AFFIRM in part and REVERSE and REMAND in part.

I. BACKGROUND

In the early 1990s, Garza created the Spanish-language radio show “El Chulo y La Bola” (“the Show” or “the El Chulo Show”). Garza created and plays the character “El Chulo,” and Bernal plays a variety of other fictional characters. In April 2002, Amigo executed three-year employment agreements (the “Employment Agreements”) with Garza and Bernal, whereby Garza and Bernal agreed to broadcast the Show on Amigo’s Spanish-language radio station, KHHL, in Austin, Texas. Amigo aggressively promoted the Show, and, according to Amigo, it soon became “very successful and consistently achieved high revenues and ratings.”

Additionally, the Show was very successful at stations where it was being syndicated. In order to increase syndication, Amigo contracted with Latin Entertainment Network (“LEN”) to syndicate the Show for a period of three years. Tony Hernandez (“Hernandez”) was the CEO of LEN. In May or June of 2003, Amigo terminated its relationship with LEN and Hernandez, and it took over all syndication of the Show.

Meanwhile, according to SBS, Hernandez was attempting to find a new radio group to do business with. Between February and August 2003, he sent numerous e-mails and letters to SBS, making various business proposals, including one to broadcast the Show from Los Angeles. Raul Alarcon (“Alarcon”), President and Chairman of the Board of SBS, responded to Hernandez in late October/early November of 2003. Thereafter, on November 12, Alarcon, Hernandez, Garza, and Bernal met in SBS’s office in Miami, Florida (the “Miami meeting”).

On or before November 12, Amigo’s then-president Chuck Brooks (“Brooks”) learned about the Miami meeting. In response, Jim Anderson (“Anderson”), Amigo’s CEO, sent SBS a letter on November 12 asking SBS not to interfere with Garza’s and Bernal’s Employment Agreements with Amigo. SBS did not respond to this letter.

On November 18, SBS’s in-house attorney, James Cueva (“Cueva”), began drafting standard employment agreements for Garza and Bernal. Cueva also requested copies of Garza’s and Bernal’s Employment Agreements with Amigo “to see whether the Agreements really existed and, if so, whether they prevented Garza and Bernal from leaving Amigo to work for SBS.” According to SBS, it “concluded that Garza and Bernal could resign from Amigo and that the non-compete clause would not prohibit them from going on-air for SBS in Los Angeles or any other SBS market because SBS and Amigo did not compete in the same markets.”

On November 24, SBS sent employment agreements to Garza and Bernal (the “SBS Employment Agreements”), offering them substantial increases in salaries and bonuses. Garza and Bernal did not perform the Show for Amigo on November 25 and 26. 1 According to Amigo, the day after Garza and Bernal failed to report to work, Bernal informed Amigo that he and Garza had accepted positions with SBS and refused to perform the El Chulo Show. When Brooks contacted Garza, Garza allegedly *479 told Brooks that they did not need him anymore, said “Fuck you,” and hung up the phone. On December 12, Amigo terminated Garza and Bernal effective November 26 and 27, respectively, for “job abandonment.” On December 19, Garza and Bernal signed the SBS Employment Agreements and began broadcasting the Show for SBS in Los Angeles.

Based on the foregoing, Amigo sued Garza, Bernal, SBS, LEN, and Hernandez for breach of contract, misappropriation/unfair competition, conversion, breach of fiduciary duty, constructive trust, invasion of privacy by misappropriation, violation of the Lanham Act, and tortious interference with a contract. LEN and Hernandez ultimately settled with Amigo. A jury trial began on May 2, 2006. At the close of Amigo’s evidence, Appellees filed motions for judgment as a matter of law, which the district court granted. Amigo now appeals, asserting that the district court erred by: (1) dismissing Amigo’s breach of contract claims against Garza and Bernal; (2) dismissing Amigo’s tortious interference claim against SBS; and (3) finding that Amigo withdrew its Lanham Act and misappropriation/unfair competition claims.

II. STANDARD OF REVIEW

We review a district court’s grant of judgment as a matter of law de novo, applying the same legal standard as the district court. Price v. Marathon Cheese Corp., 119 F.3d 330, 333 (5th Cir. 1997). Judgment as a matter of law is appropriate after “a party has been fully heard on an issue during a jury trial and the court finds that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” Fed.R.Civ.P. 50(a). “In evaluating such a motion, the court must consider all of the evidence in the light most favorable to the nonmovant, drawing all factual inferences in favor of the non-moving party, and leaving credibility determinations, the weighing of evidence, and the drawing of legitimate inferences from the facts to the jury.” Price, 119 F.3d at 333. Although the Court “should review the record as a whole, it must disregard all evidence favorable to the moving party that the jury is not required to believe” — that is, the Court “should give credence to the evidence favoring the nonmovant as well as that evidence supporting the moving party that is uncontradicted and unimpeached, at least to the extent that that evidence comes from disinterested witnesses.” Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 151, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) (internal quotations omitted).

III. DISCUSSION

A. Amigo’s Breach Of Contract Claims

Amigo asserts that Garza and Bernal breached their Employment Agreements by: (1) resigning prior to the expiration of the “Initial Term” and (2) allowing SBS to use Garza’s and Bernal’s “names and/or likenesses” for business purposes without Amigo’s consent.

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521 F.3d 472, 27 I.E.R. Cas. (BNA) 758, 2008 U.S. App. LEXIS 5835, 2008 WL 725789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amigo-broadcasting-lp-v-spanish-broadcasting-system-inc-ca5-2008.