Swanson Broadcasting, Inc. v. Clear Channel Communications, Inc.

752 S.W.2d 165, 1988 Tex. App. LEXIS 1666, 1988 WL 72053
CourtCourt of Appeals of Texas
DecidedMay 25, 1988
Docket04-88-00102-CV
StatusPublished
Cited by6 cases

This text of 752 S.W.2d 165 (Swanson Broadcasting, Inc. v. Clear Channel Communications, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swanson Broadcasting, Inc. v. Clear Channel Communications, Inc., 752 S.W.2d 165, 1988 Tex. App. LEXIS 1666, 1988 WL 72053 (Tex. Ct. App. 1988).

Opinion

OPINION

BUTTS, Justice.

This is an appeal from a temporary injunction enjoining appellants from using KAJA’s direct mail pieces (flyers) in their radio promotion (radio station contest) until final judgment is entered.

Clear Channel and Swanson operate competitive radio stations KAJA and KCYY, respectively, in San Antonio. It is undisputed that the radio stations compete for listeners and advertising dollars. The radio stations depend upon advertisers who buy commercial time on the air. More commercial air time is purchased from those stations with proven large listening audiences. Advertisers place their commercials with those stations which pull high ratings. *167 In evidence are the Birch and Arbitron surveys which reflect station-by-station ratings based on the size of the listening audience (market share). Those survey companies conducted “sweeps” of all San Antonio radio stations January through March, 1988. The general manager of KCYY testified that their chief competition was KAJA and that KCYY had adapted the same format as KAJA.

In January, 1988, KAJA purchased advertising space in 300,000 direct mail flyers sent to San Antonio households by an advertising company (ADVO). The flyers featured four KAJA “checks” each bearing serial numbers and marked in amounts ranging from $97.00 to $10,000.00. The numbered “checks” were part of a KAJA radio sweepstakes contest designed to increase the KAJA listening audience during the “sweeps” period, encouraging them to listen at specified times to determine whether they held winning numbers entitling them to cash prizes. In January KCYY began its own contest. Initially, KCYY’s contest specifically referred to and was based entirely upon the KAJA flyer. The KCYY contest used the same 9-digit serial numbers on the KAJA flyer and listeners could win a “Y100 dollar bill” if they held that other radio station’s flyer with that number.

The KAJA contest was entitled “Texas Pay-off.” The registration of the mark has been applied for with the State of Texas. The KCYY contest was entitled “The TNT Morning Pay-off”. In advertising their contest KCYY referred to “flyers mailed out by the other radio station” and awarded their prizes if the listener presented a radio station flyer with the 9-digit number called on KCYY. KCYY expended no money on flyers and mailed no flyers of its own. KAJA provided evidence that its efforts and money created the promotion, including the flyers. It is undisputed that KCYY expended no efforts and money to create its promotion or flyers used.

KAJA filed suit, and a temporary restraining order was issued after a hearing, prohibiting KCYY “from broadcasting any part of plaintiff’s official ‘Texas Pay-off’ promotion, including but not limited to check or serial numbers....” Subsequent to the temporary restraining order, KCYY changed its contest to use a three digit randomly generated number. Listeners could win if they held any type of material received in the mail having a serial number which contained the announced number. In advertising the revised version of the contest KCYY changed the name of their contest to “Y100 Serial Sweepstakes” and made no specific references to KAJA’s radio station flyers or to “the other radio station”.

A temporary injunction hearing was conducted on February 8 and 9, 1988. The trial court entered a temporary injunction prohibiting appellants “from using KJ97’s direct mail pieces ... in their promotion to redeem prizes until judgment in this cause is entered by this court.”

Appellant raises nine points of error alleging that the trial court erred in granting a temporary injunction prohibiting redemption of the flyers because: 1. appellee does not own and has no legal right to control the use of the flyers; 2. appellee’s cause of action for “misappropriation” is preempted by federal statute and the supremacy clause of the United States Constitution; 3. the trial court misapplied the law of “misappropriation” to establish facts, and therefore abused its discretion; 4. there is no evidence to support the order of the trial court in enjoining that redemption; 5. there is insufficient evidence to support the order of the trial court enjoining the redemption; 6. the pleadings and evidence show that the appellants had a legal right to redeem the flyers in issue; 7. the pleadings and evidence show that the appellee had an adequate remedy at law; 8. the pleadings and evidence show that appellee does not have a probable right to relief upon a trial on the merits of this cause because appellee does not own and has no legal right to control the flyers at issue and its cause of action for “misappropriation” is preempted by Federal statute and the Supremacy Clause of the United States Constitution; and 9. appellee failed to show probable, irreparable injury pending a trial on the merits of this cause.

*168 The scope of appellate review of an order granting a temporary injunction is limited to the ultimate question whether the trial court abused its discretion in issuing the injunction. Nicholson v. National Motor Club of Texas, Inc., 498 S.W.2d 264, 267 (Tex.Civ.App.—Tyler 1973, writ ref’d n.r.e.); Norrell v. National Motor Club of Texas, Inc., 498 S.W.2d 257, 263 (Tex.Civ.App.—Tyler 1973, writ ref’d n.r.e.); Langford v. Kraft, 498 S.W.2d 42, 48 (Tex.Civ.App.—Beaumont 1973, writ dism’d). The appeal of an order granting or denying a temporary injunction is an appeal from an interlocutory order. Accordingly, the merits of the underlying cause are not presented for appellate review. Consideration on appeal is strictly limited to the question whether the court clearly abused its discretion. Davis v. Huey, 571 S.W.2d 859, 861-62 (Tex.1978). Those points raised by appellant which are more appropriate to a review of the cause on the merits will, therefore, not be addressed.

In determining whether there has been abuse of discretion in granting or denying temporary injunction, the court of appeals must draw all legitimate inferences from evidence in the light most favorable to the trial court’s judgment. David v. Bache Halsey Stuart Shields, Inc., 630 S.W.2d 754, 757, (Tex.App.—Houston [1st Dist.] 1982, no writ); Hartwell’s Office World v. Systex Corporation, 598 S.W.2d 636, 638-639 (Tex.Civ.App.—Houston [14th Dist.] 1980, writ ref’d n.r.e.). The grant of a temporary injunction is an abuse of discretion where the evidence fails to establish a reasonable basis for deciding the applicant has a probable right of recovery. Jobe v. Watkins, 458 S.W.2d 945, 948 (Tex.Civ.App.—Fort Worth 1970, writ ref’d n.r.e.).

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

Related

W.G. Pettigrew Distributing Co. v. Borden, Inc.
976 F. Supp. 1043 (S.D. Texas, 1996)
Ichiban Records, Inc. v. Rap-A-Lot Records, Inc.
933 S.W.2d 546 (Court of Appeals of Texas, 1996)
Randall County Commissioners Court v. Sherrod
854 S.W.2d 914 (Court of Appeals of Texas, 1993)
James v. Wall
783 S.W.2d 615 (Court of Appeals of Texas, 1989)
Swanson Broadcasting, Inc. v. Clear Channel Communications, Inc.
762 S.W.2d 360 (Court of Appeals of Texas, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
752 S.W.2d 165, 1988 Tex. App. LEXIS 1666, 1988 WL 72053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swanson-broadcasting-inc-v-clear-channel-communications-inc-texapp-1988.