Torain v. Clear Channel Broadcasting, Inc.

651 F. Supp. 2d 125, 2009 U.S. Dist. LEXIS 84617, 2009 WL 2777177
CourtDistrict Court, S.D. New York
DecidedSeptember 1, 2009
Docket06 Civ. 7012(PKL)
StatusPublished
Cited by6 cases

This text of 651 F. Supp. 2d 125 (Torain v. Clear Channel Broadcasting, Inc.) 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
Torain v. Clear Channel Broadcasting, Inc., 651 F. Supp. 2d 125, 2009 U.S. Dist. LEXIS 84617, 2009 WL 2777177 (S.D.N.Y. 2009).

Opinion

OPINION AND ORDER

LEISURE, District Judge.

In this diversity case, plaintiff Troi To-rain (“Torain”) brings suit against Clear Channel Broadcasting, Inc. (“Clear Channel”) for breach of contract, breach of implied covenant of good faith and fair dealing, and violations of New York Labor Law. Clear Channel asserts counterclaims against Torain, alleging breach of contract and contractual indemnification. Currently pending before the Court is (i) Clear Channel’s motion for summary judgment seeking dismissal of Torain’s complaint; (ii) Clear Channel’s motion for summary judgment on its contractual indemnity claim; and (iii) Torain’s motion for summary judgment seeking dismissal of Clear Channel’s contractual indemnity claim. For the reasons set forth below, Clear Channel’s motion for summary judgment on plaintiffs complaint is GRANTED, and the parties’ motions for summary judgment on Clear Channel’s contractual indemnity claim are DENIED.

BACKGROUND

I. Torain’s Employment and Termination with Clear Channel

Torain is a radio host/personality, professionally known as “Star.” (Decl. of Troi Torain in Opp’n to Clear Channel’s Mots. For Summary Judgment, sworn to on Nov. 2, 2007, (“Torain Deck”) ¶ 1.) The parties agree that Torain was considered an edgy and provocative on-air radio personality when he was hired by Clear Channel to host his morning show “Star & Buc Wild” on Clear Channel’s radio stations. {Id. ¶ 2; Def.’s Mem. 3.) 1 In connection with *131 Torain’s employment with Clear Channel, on or about March 25, 2004, Torain and Clear Channel entered into a written contract (the “Employment Agreement” or the “contract”). 2

Pursuant to the Employment Agreement, Torain was to be employed by Clear channel from March 29, 2004 to March 28, 2007. (Employment Agreement § 3.) However, Torain’s employment with Clear Channel ended on May 10, 2006 when Clear Channel terminated Torain for his on-air statements about Raashaun Casey, his wife, Gia Casey, and their four year-old daughter. {See Todd Decl. Ex. E.) Raashaun Casey was also a radio personality, with a radio show broadcasted on another radio station opposite Torain’s program. {See Def.’s Mem. 1 n. 2; Aff. of Gia Casey in Support of Def. Clear Channel Broadcasting Inc.’s Mots. For Summary Judgment, sworn to on Sept. 27, 2007 (“Casey Aff.”) ¶¶3-5.) The Court deems it unnecessary to detail all of the comments Torain made about the Caseys during the relevant time period. It suffices to say that Torain made sexually *132 explicit comments and racial slurs regarding Mr. and Mrs. Casey, as well as on-air comments concerning sexual relations with the Caseys’ daughter, who was four years old at the time. The parties do not dispute the substance of Torain’s comments about the Caseys and their daughter. Rather, the parties primarily dispute whether such statements rise to the level of a terminable offense under the cause provisions in the Employment Agreement. The parties also disagree as to which provisions in the Employment Agreement this Court can consider in determining whether Torain’s termination violated the Employment Agreement. While Clear Channel contends that it had grounds to terminate Torain under numerous provisions of the Employment Agreement (see Def.’s Mem. 5-6), plaintiff and plaintiffs manager, Wyatt Cheek, aver that the parties’ negotiations and pre-contract discussions make clear that many of the provisions Clear Channel now relies upon were inapplicable to on-air statements. (See Decl. of Wyatt Cheek in Opp’n to Clear Channel’s Mots, for Summary Judgment, sworn to on Nov. 2, 2007 (“Cheek Deck”) ¶¶ 7-11, 24-28; Torain Deck ¶¶6-7, 13.). Plaintiff also contends that Clear Channel did not have grounds to terminate Torain for cause based upon the precontract statements of John Hogan, Clear Channel’s CEO, to Congress as to Clear Channel’s indecency policies and procedures. (See Cheek Deck ¶¶ 10-12, 14; Torain Deck ¶¶ 10-13.)

Section 6 of the Employment Agreement governs the circumstances under which the Employment Agreement, and thus To-rain’s employment, could be terminated. Pursuant to the contract, if Torain was terminated without cause, Clear Channel would be obligated to pay Torain’s salary and benefits through the date of termination, plus “an amount equal to the remainder of [Torain’s] base salary ... through and including March 28, 2007 ... only if [Torain] agrees to and signs a general release prepared by [Clear Channel].” (Employment Agreement § 6(e).) However, if the termination was with cause, To-rain is only entitled to unpaid earned base salary and any benefits earned through the termination date. (Id. § 6(d).)

Section 6(c) of the Employment Agreement defines the circumstances that can constitute a for cause termination. The provisions of Section 6(c) relevant to this dispute include:

(i) failure, neglect, refusal, or nonperformance, at any time, of [Torain’s] duties or obligations set forth in this Agreement or a breach by [Torain] (confirmed in writing) of this Agreement, as determined by the Company in its sole discretion;
(iii) willful misconduct, or violation of any Company policy provided that [To-rain] had prior written notice (made known to [Torain] on the Clear Channel Resource Center Website or otherwise);
(iv) an act(s) or failures to act which in any manner threatens the qualification of [Clear Channel] or its affiliates to maintain a broadcast license issued by the FCC, or which results in a violation of any rule or regulation of the Federal Communications Commissions including but not limited to any utterance on the air that is obscene, indecent, or profane as determined and acknowledged in writing by [Clear Channel] or a court, upon review of a ruling from the FCC;
(v) making disparaging oral or written statements regarding [Clear Channel] or any affiliated company and including, without limitation, its or their officers, shareholders or management team, clients, sponsors or advertisers, or [Torain] acting in a tortious manner toward another employee, listener, client, sponsor or advertiser;
(vii) any conduct, on or off duty, which in the opinion of [Clear Channel], *133 reflects unfavorably upon [Clear Channel] (including any radio or television broadcasting station owned or operated by [Clear Channel], its parent or subsidiary corporations or their advertisers) provided [Torain] is aware of such affiliation, brings [Torain] into disrepute or causes scandal or discredits [Clear Channel];

(Id. § 6(c).)

Also relevant to the instant dispute is Section 7(b) of the Employment Agreement, which provides:

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651 F. Supp. 2d 125, 2009 U.S. Dist. LEXIS 84617, 2009 WL 2777177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/torain-v-clear-channel-broadcasting-inc-nysd-2009.