Broadcasting Rights International Corp. v. Societe Du Tour De France

675 F. Supp. 1439, 1987 U.S. Dist. LEXIS 11361, 1987 WL 24844
CourtDistrict Court, S.D. New York
DecidedDecember 9, 1987
Docket87 Civ. 7485 (RWS)
StatusPublished
Cited by24 cases

This text of 675 F. Supp. 1439 (Broadcasting Rights International Corp. v. Societe Du Tour De France) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broadcasting Rights International Corp. v. Societe Du Tour De France, 675 F. Supp. 1439, 1987 U.S. Dist. LEXIS 11361, 1987 WL 24844 (S.D.N.Y. 1987).

Opinion

OPINION

SWEET, District Judge.

Broadcasting Rights International Corp. (“BRIC”) commenced this action seeking damages and injunctive relief from defendant Societe du Tour de France, S.A.R.L. (“STDF”) arising out of STDF’s alleged interference with BRIC’s contract with CBS Sports (“CBS”). BRIC sought a temporary restraining order and a preliminary injunction, and STDF has moved for an order dismissing the complaint for lack of personal jurisdiction or on the ground of forum non conveniens. Argument was heard on November 25, 1987. Although personal jurisdiction exists over STDF, for the reasons set forth below, the complaint is dismissed conditionally on the ground of forum non conveniens.

THE COMPLAINT

BRIC contends that STDF’s wrongful conduct has destroyed its existing and prospective business relationships. Thus, in its complaint BRIC has asserted two primary claims against STDF: (1) a claim for tortious interference with contractual and pre-contractual relations and (2) a claim for declaratory judgment as to the enforceability and validity of its contracts with STDF.

FACTS

BRIC is a Florida corporation whose three shareholders are French citizens and whose principal shareholder and president is Philippe Riquois. BRIC has no office, no telephone number and no employees in the state of New York. On his frequent business trips to New York, Riquois utilizes the offices of his attorneys here. BRIC also holds more than $2 million in two separate bank accounts in New York.

STDF is a company organized under French law that was created in 1973 to *1441 organize and administer the Tour de France (the “Tour”), an internationally renowned bicycle race held each July in France. The sole shareholder of STDF is a French entity known as “Les Editions Amaury,” a newspaper group that also owns Le Parisién and L’Equipe, two French newspapers that originally co-sponsored the Tour in 1902. The principal co-managers of STDF were Jacques Goddet and Felix Levitan, although it appears that beginning in 1981, Levitan took the lead role in managing the company. STDF has no office, no telephone number, no bank account, and no employees, agents or representatives in the state of New York.

This dispute arises from various contracts that Levitan and Riquois entered into on behalf of STDF and BRIC, respectively.

THE RELATIONSHIP BETWEEN BRIC AND STDF

Despite its long history and international stature, the Tour, as recently as 1979, had only minimal media exposure in the United States and other countries outside Western Europe. In 1980, BRIC took its first steps to promote the Tour outside France, as a result of informal agreements which BRIC alleges it reached with STDF granting BRIC exclusive broadcast rights to the Tour, and with BRIC’s assistance, in 1980 CBS broadcast five minutes of the Tour in the United States. In 1981 and 1982, NBC broadcast portions of the Tour using footage that BRIC had helped to obtain from a French television network. As evidence of its informal agreements with STDF, BRIC has submitted a document dated June 4, 1984 that is described as a rider (“1984 Rider Agreement”) to a contract dated January 5, 1983 between BRIC and STDF. 1

In 1983, CBS broadcast twenty-seven minutes of the Tour of America, a bicycle race in the United States that was sponsored by World Tour Cycling, a partnership that BRIC had formed with Capital Sports, an American company specializing in the organization and marketing of athletic events. Although STDF declined BRIC’s request that it provide financial support for the Tour of America, STDF did agree to provide technical assistance in return for payment of 120,000 French francs. When its partnership with Capital Sports dissolved, BRIC assumed responsibility for losses amounting to more than $500,000 that had resulted from the Tour of America.

The 1984 Rider Agreement reconfirms STDF’s prior grant of “the exclusive rights to produce, transmit, negotiate and sell all the programs, films or broadcasts of its choice ... concerning the bicycle events organized by [STDF]” and extends those rights to “all the present and future events which [STDF] will organize or direct, directly or indirectly, in all countries of the world, whatever the sport concerned.” The 1984 Rider Agreement also provides that prior to the annual payment of 70% of the broadcasting revenues to STDF, BRIC is authorized to deduct a total of $838,000 to cover losses and expenses it had accrued since 1979 in its efforts to promote the Tour and bicycle racing in the United States, in particular the 1983 Tour of America.

On April 7, 1985, BRIC entered into an agreement with CBS (“CBS Agreement”) that granted CBS the American broadcast rights to the Tour and another bicycle race sponsored by STDF for the years 1985, 1986, 1987, and 1988 and obligated the parties to negotiate in good faith for extensions after 1988. BRIC asserts that it had obtained from STDF the exclusive rights to sell broadcast rights to the Tour in the series of informal agreements referred to above.

Finally, BRIC has submitted an agreement between BRIC and STDF dated July 4, 1985 (“Master Agreement”) which sum *1442 marizes the various formal and informal agreements that STDF had allegedly entered into with BRIC over the previous six years. The Master Agreement establishes BRIC’s exclusive rights to sell the broadcast rights to the Tour for a five year period from June 4, 1984 to June 3, 1989. 2 This agreement reaffirms BRIC’s right to deduct the lump sum payment that was provided in the 1984 Rider Agreement to cover past losses and expenses. BRIC contends that the Master Agreement, as extended, established its control over the worldwide broadcasting and trademark rights for the Tour and enabled it to renegotiate with CBS for an extension of the CBS Agreement.

STDF’S INTERFERENCE WITH BRIC’S CONTRACTUAL RELATIONS

In March 1987, the board of directors of STDF fired Levitan after charging him with secretly contracting to permit STDF corporate funds to be used to cover BRIC’s losses from the 1983 Tour of America. STDF claims that its officials, other than Levitan, discovered the existence of the Master Agreement for the first time in March when they obtained a court order permitting them to open and inspect Levi-tan’s personal safe in his office. STDF claims that it then obtained a copy of the CBS Agreement from CBS Sports. STDF contends that Levitan sought to keep these two agreements secret from other officials of STDF and for that reason did not place copies of them in STDF’s regular files.

On April 14, 1987, STDF informed Ri-quois by letter that STDF considered the agreements between STDF and BRIC to be “null and void,” that it was thereby terminating those agreements, and that BRIC was no longer “qualified to claim to represent” STDF vis-a-vis other parties. On April 15, 1987, STDF sent identical letters to CBS and to Channel Four Television in London, England stating that BRIC was “no longer commissioned by [STDF] to represent it” and that STDF would nonetheless honor the rights that the networks had acquired pursuant to previous negotiations with BRIC.

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Bluebook (online)
675 F. Supp. 1439, 1987 U.S. Dist. LEXIS 11361, 1987 WL 24844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broadcasting-rights-international-corp-v-societe-du-tour-de-france-nysd-1987.