Jacobs Broadcast Group, Inc. v. Jeff Beck Broadcasting Group, LLC

160 So. 3d 345, 2014 WL 3890964, 2014 Ala. Civ. App. LEXIS 138
CourtCourt of Civil Appeals of Alabama
DecidedAugust 8, 2014
Docket2120772
StatusPublished
Cited by4 cases

This text of 160 So. 3d 345 (Jacobs Broadcast Group, Inc. v. Jeff Beck Broadcasting Group, LLC) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobs Broadcast Group, Inc. v. Jeff Beck Broadcasting Group, LLC, 160 So. 3d 345, 2014 WL 3890964, 2014 Ala. Civ. App. LEXIS 138 (Ala. Ct. App. 2014).

Opinions

THOMAS, Judge.

In September 2012, Jacobs Broadcast Group, Inc. (“Jacobs”), sold four radio stations (“the stations”) to Jeff Beck Broadcasting Group, LLC (“Beck”). The contract memorializing that sale contained a noncompetition agreement prohibiting Jacobs from competing with Beck for a period of three years. The noncompetition agreement provided, in pertinent part:

“B. In conjunction with the Sale Agreement, as an inducement to [Beck] entering into the Sale Agreement and as a condition to the consummation of the Acquisition, [Jacobs] has agreed that it and its principals will refrain from competing with [Beck] as described herein-below for a stated period of time in order that [Beck] may obtain the contemplated benefits from the acquisition and the goodwill associated therewith.
“NOW, THEREFORE, in consideration of the mutual promises made in the Agreement and the consideration to be received by [Jacobs] in connection with the Sale Agreement transaction and for other good and valuable consideration, the simultaneous receipt and adequacy of which are hereby acknowledged, [Beck] and [Jacobs] (collectively referred to as ‘Parties’) hereby agree as follows:
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“2. [Jacobs] agrees that, during the term of this Agreement, neither it nor any of its principals will engage in any undertaking or enterprise in competition with [Beck]. For purposes of this agreement, the term ‘compétition’ shall be defined to include engaging, participating or investing in or assisting, whether as a principal, officer, director,' trustee, employee, agent or consultant, or in any other capacity, directly or indirectly, in the conduct or operation of any radio broadcast station, in the sale of advertising or promotional services or in any activity which is similar to that in which the Stations are or have been engaged, within the geographical area covered by the Stations’ primary service contours, [348]*348as defined by the [Federal Communications] Commission’s Rules.

Years before the sale of the stations, Jacobs had applied to the Federal Communications Commission (“the FCC”) for a translator construction permit (“the permit”). The record reflects that such a permit issued by the FCC allows its owner to build and operate a facility capable of converting AM signals to the FM frequency band for broadcast. Jacobs had not been awarded the permit at the time it sold the stations to Beck, and it could therefore not sell the permit to Beck at that time. When Jacobs received notice that it had been awarded the permit, it contacted Beck and offered to sell Beck the permit. Beck declined to purchase the permit. Jacobs then contacted a competing radio station serving the Calhoun County area and offered to sell it the permit. -

On May 1, 2013, Beck filed a complaint in the Calhoun Circuit Court seeking a temporary restraining order (“TRO”), a preliminary injunction, and a permanent injunction restraining Jacobs from selling or transferring the permit, because, Beck contended, Jacobs’s sale of the permit would violate the noncompetition agreement.1 Beck also filed a verified motion for a TRO, which the trial court granted on May 10, 2013.2 On May 13, 2013, the trial court entered an order setting a hearing on the matter for May 21, 2013.

Jacobs filed a motion to dismiss Beck’s complaint and a motion to dissolve the TRO on May 14, 2013. On that same day, the trial court reset the May 21, 2013, hearing for May 15, 2013, stating in its order that it would consider Jacobs’s motion to dissolve at the May 15, 2013, hearing. Both parties appeared at the hearing on May 15, 2013, at which time the trial court stated that it would consider both the motion to dissolve and Beck’s request for a preliminary injunction. Counsel for Jacobs objected, arguing that a preliminary injunction “can’t be issued without notice” and that it was not “prepared to go against the preliminary injunction” because it did not have its “FCC expert here to testify regarding [the permit].” Counsel for Beck argued that the TRO would expire after 10 days and that it should be entitled to put on evidence regarding the elements required to establish a right to a preliminary injunction at the May 15, 2013, hearing because of the need for the hearing on the preliminary injunction to be held before the expiration of the TRO. The trial court overruled Jacobs’s objection, noting specifically that 5 days of the 10-day period during which the TRO would remain effective had already elapsed.

After taking the testimony of James Jacobs and Jeff Beck, the principal owners of Jacobs and Beck, respectively, the trial court concluded the hearing; from the bench, the trial court ordered the par[349]*349ties to submit post-hearing briefs by May 17, 2013. On May 22, 2013, the trial court entered an order issuing a preliminary injunction, in which it specifically enjoined Jacobs from selling the permit pending trial of the matter or pending further order of the court.3 Jacobs timely appealed from the order issuing the preliminary injunction. See Rule 4(a)(1)(A), Ala. R.App. P. (providing that a party, may appeal “any interlocutory order granting, continuing, modifying, refusing, or dissolving an injunction, or refusing to dissolve or to modify an injunction” by filing a notice of appeal within 14 days of the entry of that order).

Our supreme court has set out the standard of review governing the appeal of an order granting a preliminary injunction as follows:

“‘The decision to grant or to deny a preliminary injunction is within the trial court’s sound discretion. In reviewing an order granting a preliminary injunction, the Court determines whether the trial court exceeded that discretion.’ SouthTrust Bank of Alabama, N.A. v. Webb-Stiles Co., 931 So.2d 706, 709 (Ala.2005).
“A preliminary injunction should be issued only when the party seeking an injunction demonstrates:
“ ‘ “(1) that without the injunction the [party] would suffer irreparable injury; (2) that the [party] has no adequate remedy at law; (3) that the [party] has at least a reasonable chance of success on the ultimate merits of his case; and (4) that the hardship imposed on the [party opposing the preliminary injunction] by the injunction would not unreasonably outweigh the benefit accruing to the [party seeking the injunction].” ’
“Ormco Corp. v. Johns, 869 So.2d 1109, 1113 (Ala.2003)(quoting Perley v. Tapscan, Inc., 646 So.2d 585, 587 (Ala.1994)).
“To the extent that the trial court’s issuance of a preliminary injunction is grounded only in questions of law based on undisputed facts, our longstanding rule that we review an injunction solely to determine whether the trial court exceeded its discretion should not apply. We find the rule applied by the United State Supreme Court in similar situations to be persuasive: ‘We review the District Court’s legal rulings de novo and its ultimate decision to issue the preliminary injunction for abuse of discretion.’ Gonzales v. O Centro Espirita Beneficente Uniao do Vegetal, 546 U.S. 418, 428, 126 S.Ct. 1211, 163 L.Ed.2d 1017 (2006)....”

Holiday Isle, LLC v. Adkins, 12 So.3d 1173, 1175-76 (Ala.2008).

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Bluebook (online)
160 So. 3d 345, 2014 WL 3890964, 2014 Ala. Civ. App. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-broadcast-group-inc-v-jeff-beck-broadcasting-group-llc-alacivapp-2014.