Remark, LLC v. Adell Broadcasting Corporation

702 F.3d 280, 2012 U.S. App. LEXIS 25739, 2012 WL 6581033
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 18, 2012
Docket11-2349, 11-2442
StatusPublished
Cited by7 cases

This text of 702 F.3d 280 (Remark, LLC v. Adell Broadcasting Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Remark, LLC v. Adell Broadcasting Corporation, 702 F.3d 280, 2012 U.S. App. LEXIS 25739, 2012 WL 6581033 (6th Cir. 2012).

Opinions

SUTTON, J., delivered the opinion of the court, in which GRIFFIN, J., joined, and WHITE, J., joined in the result. WHITE, J. (pp. 285-86), delivered a separate concurring opinion.

OPINION

SUTTON, Circuit Judge.

Remark advertises radio stations with television commercials featuring women lip-syncing radio content. When Adell ran similar ads for television station WADL, Remark threatened to sue. The parties appeared to resolve this initial tempest through a settlement. Adell tried to back out of the settlement, however, prompting Remark to follow through on its threat and to sue to enforce the settlement. The district court determined that Adell had breached the settlement and granted Remark summary judgment. We affirm.

I.

Remark, a California corporation, produced a distinctive series of television commercials for radio stations known by some as the “remarkable mouth” or “hot lips” [282]*282commercials. The commercials begin with a shot of a classically attractive woman. The camera then focuses on the woman’s mouth as she begins lip-syncing content from the advertised station. The camera zooms back, and a male voice says, “You have a remarkable mouth.” The woman responds that the advertised radio station “is a remarkable station.” The camera zooms in once more, and the woman lip-syncs a final segment. R.19 ¶ 9. The United States Copyright Office issued a copyright for a version of this commercial in 1980. U.S. Reg. No. PA 64-936. The original holder of the copyright assigned it to Remark, which registered it with the Copyright Office in 2002.

WADL, a Detroit television station, broadcast two commercials that resemble the copyright. After the commercials aired, Remark sent a cease-and-desist letter to Adell, the producer of the commercials. R.19-8 at 2. After some negotiation, the parties agreed that Adell would pay $50,000 to settle Remark’s claims. Remark drafted a settlement agreement, and Adell produced a revised version, which the parties exchanged through e-mail. Remark’s counsel e-mailed Adell’s counsel saying that Remark “agree[d] to all of your proposed changes” and asking Adell to create “a final version for execution.” R.35 at 3. Adell forwarded a final version. R.19-9 at 3-7. Remark signed and returned the originals to Adell, but Adell never signed the agreement. It instead retained new counsel and for the first time balked at the $50,000 figure, offering to settle for a more “reasonable” — lower— amount. R.26-6 at 3.

Remark filed this lawsuit, claiming among other things that Adell breached the settlement agreement. The district court granted Remark’s motion for summary judgment but denied its request for attorney’s fees. The parties appeal their respective losses.

II.

The question in this case is straightforward: Did the parties settle their dispute? And the standard of review of the district court’s decision is equally straightforward: We give a fresh look to its summary-judgment decision. Gecewicz v. Henry Ford Macomb Hosp. Corp., 683 F.3d 316, 321 (6th Cir.2012).

If parties to a pending or threatened lawsuit settle their dispute, the failure of one party to adhere to the terms of the settlement — a type of contract — gives rise to a breach of contract action. As it turns out, there are two potentially enforceable contracts here. One arises from the parties’ initial e-mails expressing a meeting of the minds about the material terms of a settlement: Remark would drop its copyright (and other) claims for $50,000, and Adell would stop airing “remarkable mouth” commercials. On December 11, 2009, Adell’s counsel e-mailed Remark’s counsel with “proposed revisions to the settlement agreement.” R.35 at 3. On December 14, 2009, Remark’s counsel wrote back, saying, “Because we’d like to get this wrapped up, we will agree to all of your proposed changes.” Id. The former was a written offer, the latter a written acceptance. No one complains that one lawyer or the other lacked authority to bind his client. And no one complains that the December 11 version of the agreement is different from the one Remark ultimately signed. Taken together, the e-mails reflect an agreement with respect to all material terms of the settlement. See Kloian v. Domino’s Pizza, L.L.G., 273 Mich.App. 449, 733 N.W.2d 766, 770-71 (2006).

[283]*283The other agreement arises from the next exchange of e-mails and documents. In the same December 14, 2009 email, Remark asked Adell to create a final version of the agreement for execution. On December 22, 2009, Adell complied and sent Remark a final version of the agreement. Remark signed the agreement that day and returned two copies on January 5, 2010. AdelTs counsel responded, saying it had forwarded the documents to Adell for signature. This last exchange — a settlement document offered by Adell and accepted by a Remark representative’s signature — also constituted a binding offer and an acceptance. Once again, the agreement contained simple terms and basic objectives. The five-page agreement said that Remark would settle its claims for $50,000, and that Adell would take the offending commercials off the air. And once again, no one alleges that the agents of either company lacked authority to bind their principals. Taken together, the emails conveyed an objective meeting of the minds as to each of the material terms, and as such they meet all of the requirements of an enforceable contract under Michigan law. See Kloian, 733 N.W.2d at 770-71.

To all of this, Adell offers one retort: It did not sign the final version of the written settlement agreement. Yet a prior meeting of the minds is not undone by the decision of one party to back out of the last version, even if it is the most formal version, of a settlement agreement. See Scholnick’s Importers-Clothiers, Inc. v. Lent, 130 Mich.App. 104, 343 N.W.2d 249, 253 (1983). The question is whether the parties reached agreement on the material terms of the eontraet/settlement. If they did, the later decision of one party not to sign a formal memorialization of that agreement does not by itself retroactively change the agreement already reached. Id.

The Restatement of Contracts lays out the basic rule and the exception to it. The rule: “Manifestations of assent that are in themselves sufficient to conclude a contract will not be prevented from so operating by the fact that the parties also manifest an intention to prepare and adopt a written memorial thereof.” Restatement (Second) of Contracts § 27. The exception: “[B]ut the circumstances may show that the agreements are preliminary negotiations.” Id.; see Klapp v. United Ins. Grp. Agency, Inc., 468 Mich. 459, 663 N.W.2d 447, 455-56 (2003) (relying on the Restatement of Contracts in resolving a contract dispute); Customized Transp., Inc. v. Bradford, 114 F.3d 1186 (6th Cir. 1997) (unpublished table decision) (applying Michigan law and relying on § 27 to find an enforceable contract notwithstanding failure to execute); cf. Lansing Pavilion v. Eastwood, Nos. 281811 et al., 2009 WL 2424677, at *4, 2009 Mich.App. LEXIS 1666, at *11 (Mich.Ct.App. Aug. 6, 2009) (quoting § 27 cmt. b).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hull v. Gold Sheep, LLC
M.D. Tennessee, 2024
Monica Jackson v. GE
Sixth Circuit, 2022
Reed v. Ezelle Inv. Props. Inc.
353 F. Supp. 3d 1025 (D. Oregon, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
702 F.3d 280, 2012 U.S. App. LEXIS 25739, 2012 WL 6581033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/remark-llc-v-adell-broadcasting-corporation-ca6-2012.