Mizlou Television Network, Inc. v. National Broadcasting Co.

603 F. Supp. 677, 1984 U.S. Dist. LEXIS 21588
CourtDistrict Court, District of Columbia
DecidedNovember 30, 1984
Docket84-1613
StatusPublished
Cited by19 cases

This text of 603 F. Supp. 677 (Mizlou Television Network, Inc. v. National Broadcasting Co.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mizlou Television Network, Inc. v. National Broadcasting Co., 603 F. Supp. 677, 1984 U.S. Dist. LEXIS 21588 (D.D.C. 1984).

Opinion

MEMORANDUM OPINION AND ORDER

JOYCE HENS GREEN, District Judge.

This action involves a dispute over rights to televise the 1984 Florida Citrus Bowl (formerly the Tangerine Bowl), a college football game to be played on December 22 of this year. Plaintiff Mizlou Television Network, Inc. (“Mizlou”) raises various federal antitrust and pendent state law claims in connection with the decision of defendant Florida Citrus Sports Association to grant the broadcast rights for this year’s Citrus Bowl to defendant National Broadcasting Company. For the reasons that follow, all of plaintiff’s claims against each defendant must be dismissed.

Procedural Posture

Plaintiff filed this action on May 23, 1984, alleging a “contract, combination and conspiracy in restraint of trade” in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1 (Complaint ¶ 7), an attempt to monopolize and a conspiracy to monopolize (Complaint 118) and perhaps monopolization (Complaint ¶ 14), all in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2, a contract “to substantially lessen competition or tend to create a monopoly” in violation of Section 3 of the Clayton Act, 15 U.S.C. § 14, and breach of contract and tortious interference with contract (Complaint, ¶¶ 13, 14). Named as defendants to the complaint are:

(1) National Broadcasting Company (“NBC”).

(2) Arthur Watson, President, NBC Sports.

(3) Jeffrey Cokin, Director of Sports Contract Negotiations, NBC Sports.

(4) Florida Citrus Sports Association, Inc. (“FCSA”).

(5) Sam Hines, member of the FCSA Executive Committee.

(6) Charles Rohe, member of the FCSA Executive Committee.

(7) Vernon Hinely, member of the FCSA Executive Committee.

(8) Florida Citrus Commission.

On July 9, 1984, the NBC defendants (NBC, Watson and Cokin), the FCSA defendants (FCSA, Hines, Rohe and Hinely) and the Florida Citrus Commission filed separate motions to dismiss under Federal Rule of Civil Procedure 12(b). Three weeks after those motions ripened, plaintiff filed its October 1,1984 “motion for declaratory relief” seeking an expedited hearing and resolution of “the issue of rights to televising the bowl game.” Plaintiff’s Motion at 3. At the oral hearing on all motions held November 2, 1984, plaintiff confirmed that it seeks immediate consideration of its pendent state law claims, but acknowledged that it did not expect the antitrust claims to be decided on the merits before the December 22 Citrus Bowl game.

Plaintiff’s sudden demand for expedition is somewhat puzzling. Mizlou’s chief executive learned of the FCSA’s agreement with NBC in August 1983 at the latest, yet *679 devoted fully eight months to “soulsearching” before deciding to bring this action. 1 Once in court, plaintiff stipulated to extensions of filing deadlines requested by defendants and sought an extension of its own. Furthermore, plaintiffs complaint on its face seeks monetary relief only — there is no request in that pleading that the Court enjoin any conduct by any defendant before any fixed date.

More fundamentally, even if plaintiff's subsequent pleadings are viewed as amending the complaint to state a claim for injunctive relief, the merits of plaintiffs state law claims cannot be considered without first addressing issues raised by defendants in their motions to dismiss. Defendants assert, among other things, that defendant Florida Citrus Commission is immune from suit in this Court, that this Court lacks personal jurisdiction over six of the eight defendants, and that plaintiffs allegations fail to state an actionable claim under applicable state law or the federal antitrust statutes, the foundation of this Court’s pendent jurisdiction over plaintiff’s state law claims. Until those issues are resolved, consideration of the merits of the pendent claims would be premature. See Financial General Bankshares, Inc. v. Metzger, 680 F.2d 768, 773 (D.C.Cir.1982) (if federal claims are dismissed at an early stage of litigation, pendent state claims should be dismissed as well).

Factual Background

Upon consideration of defendants’ motions to dismiss for jurisdictional and pleading deficiencies, the Court must accept as true the factual allegations set forth in the complaint. See Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974). Those allegations, supplemented by documents introduced by plaintiff at the November 2, 1984 hearing, state the following:

Mizlou and FCSA, the successor corporation of the Tangerine Sports Association, Inc. (“TSA”), are parties to a contract entitled “Tangerine Bowl Television Rights Agreement” and dated November 12, 1980. Pursuant to that agreement, TSA granted to Mizlou the exclusive broadcast television rights to the 1980, 1981, 1982 and 1983 Tangerine/Citrus Bowls. Clause 15 of the Mizlou/TSA contract provided that TSA/FCSA could offer the right to cover the 1984, 1985 and 1986 games to competing broadcasters, but reserved to Mizlou the opportunity to match or better the offers of third parties under certain circumstances. 2

By letter dated August 9, 1983, defendant FCSA, through defendant Hines, informed Mizlou of existing offers (including one by defendant NBC) made to FCSA for future television coverage of the Citrus Bowl, beginning in 1984. Defendant’s letter stated that FCSA was submitting the list of offers “as required by [its] contract with Mizlou which runs through the 1983 game,” and further stated that “by previous agreement Mizlou has ten (10) days in which to exercise first right of refusal.” *680 PX-2. On August 17, 1984, plaintiff responded that it had “elect[ed] to exercise [its] option to renew the agreement on the same terms and conditions offered by NBC Television Network” and stated its intention to submit to FCSA a formal agreement covering all points in the NBC offer. PX-3. Through its attorney, FCSA conveyed by telegram the following reply (PX-1):

On behalf of Florida Citrus Sports Association, Inc., we hereby advise you that the 10-day period within which you requested an opportunity to respond to other offers has now expired. It is our opinion that paragraph 15 of your contract with TSA does not confer upon you a right of first refusal under these circumstances. Nonetheless, pursuant to subsequent correspondence, it was thought to be appropriate to inform you, of the NBC offer. In our opinion, your offer does not match the value of the NBC offer. Since 10 days have passed since you have been informed of the NBC offer, it is our opinion that Florida Citrus Sports Association has no further obligations to Mizlou for 1984 and thereafter.

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Cite This Page — Counsel Stack

Bluebook (online)
603 F. Supp. 677, 1984 U.S. Dist. LEXIS 21588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mizlou-television-network-inc-v-national-broadcasting-co-dcd-1984.