Weiss v. Northwest Broadcasting Inc.

140 F. Supp. 2d 336, 2001 U.S. Dist. LEXIS 8433, 2001 WL 409712
CourtDistrict Court, D. Delaware
DecidedApril 18, 2001
DocketC.A. 99-811 GMS
StatusPublished
Cited by19 cases

This text of 140 F. Supp. 2d 336 (Weiss v. Northwest Broadcasting Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weiss v. Northwest Broadcasting Inc., 140 F. Supp. 2d 336, 2001 U.S. Dist. LEXIS 8433, 2001 WL 409712 (D. Del. 2001).

Opinion

MEMORANDUM AND ORDER

SLEET, District Judge.

In November of 1999, Terrill Weiss (“Weiss”) filed this action alleging that Northwest Broadcasting, Inc. (“North *338 west”) promised and agreed to finance a bid for a Federal Communications Commission (“FCC”) construction permit to build a television station in Houston, Mississippi. Weiss seeks to recover damages for breach of contract, or in the alternative, for losses incurred because of his reasonable reliance upon Northwest’s alleged promises. Northwest timely answered and asserted a counterclaim for breach of contract. Presently before the court is Northwest’s motion for summary judgment wherein it contends that Weiss cannot establish a claim for breach of contract. Because there are no genuine issues of material fact in dispute that prevent the court from ruling that Weiss’ claims fail as a matter of law, the court will grant Northwest’s motion for summary judgment. The follow sections set forth the basis for this decision in greater detail.

I. STANDARD OF REVIEW

Summary judgment is appropriate only if the record shows that there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). See also 2-J Corp. v. Tice, 126 F.3d 539, 540 (3d Cir.1997). The moving party bears the burden of proving that there are no genuine issues of material fact in dispute. See Carter v. Exxon Co., 177 F.3d 197, 202 (3d Cir.1999); Ideal Dairy Farms, Inc. v. John Labatt, Ltd., 90 F.3d 737, 743 (3d Cir.1996). In deciding a motion for summary judgment, all inferences should be drawn in the light most favorable to the non-moving party. See Carter v. Exxon Co., 177 F.3d at 202. In determining if summary judgment is appropriate, the court’s “function is not to weigh the evidence and determine the truth of the matter,” but to determine whether there are genuine issues of material fact in dispute. Id. (citation omitted). “Facts that could alter the outcome are ‘material’, and disputes are ‘genuine’ if evidence exists from which a rational person could conclude that the position of the person with the burden of proof on the disputed issue is correct.” Ideal Dairy Farms, 90 F.3d at 743 (citation omitted).

In particular, in a breach of contract action, the court can grant summary judgment only when “the contract is unambiguous and the moving party is entitled to judgment as a matter of law.” Newport Assocs. Development Co. v. Traveler's Indemnity Co., 162 F.3d 789, 791 (3d Cir.1998) (citing Tamarind Resort Assocs. v. Government of Virgin Islands, 138 F.3d 107, 111 (3d Cir.1998)).

With these standards in mind, the court will turn to the facts that led to this lawsuit.

II. FACTS

This lawsuit arose in connection with a series of agreements made between the parties for procuring a permit to construct a television station. Because the parties dispute whether valid contracts were formed, and if they were, if those contracts were breached, the court will provide a detailed description of the parties’ discussions.

A. Auction for the Channel 45 Permit

Terrill Weiss is the managing member and 30% owner of Trace Broadcasting LLC (“Trace”). Trace is a limited liability company organized under the laws of Mississippi. Trace was formed in 1995 for the purpose of exploring business opportunities in the broadcasting industry, and in particular, it was formed for the purpose of bidding on the application for a construction permit for Channel 45 in Houston, Mississippi. The defendant, Northwest, is a corporation organized under the laws of Delaware with its principle place of business in Michigan. Northwest is in the *339 business of owning and operating televisions stations in various markets throughout the United States.

Some time in January of 1998, Trace along with several other companies, applied to the FCC for a permit to construct Channel 45 in Houston, Mississippi. On January 26, 1998, Weiss, on behalf of Trace, signed an Auction and Settlement Agreement (“Auction Agreement”). This Auction Agreement provided that the applicants would participate in a telephone auction on January 30, 1998. The highest bidder would receive the permit for Channel 45. In order to be eligible to participate in the auction, an applicant had to submit a $25,000 deposit by January 27, 1998. Under the terms of the Auction Agreement, the applicant that submitted the highest bid at the auction was required to tender the full amount of its bid within ten business days after the auction. The amount tendered by the winning applicant, less certain fees and expenses, would then be distributed pro rata to the remaining applicants in return for the dismissal of their applications for the Channel 45 construction permit. If the high bidder failed to tender its full bid amount within ten days, its application for the Channel 45 permit would be dismissed and it would forfeit both its $25,000 security deposit and its right to share in the distribution of the high bid.

The Auction Agreement also contained an anti-white knight provision. Specifically, it stated that “[j]oint bidding ventures, partnerships, consortia, combinations, alliances and any other agreements, arrangements or understandings of any kind relating to any aspect .of the auction ... shall be prohibited.”

Around the same time that Trace began to pursue the Channel 45 permit, Weiss solicited financial partners to finance procuring the permit and building the station on behalf of Trace. Weiss approached a media broker, Bruce Fox (“Fox”), regarding the Channel 45 application. According to the plaintiffs, Fox suggested that Brian Brady (“Brady”), President of Northwest, might be interested in the Channel 45 opportunity.

B. The Parties’ Discussions and the Loan Documents

On or about January 22,1998, Weiss and Brady first discussed the status of the permit application process and the upcoming auction for the FCC permit. As a result of this conversation, Brady, on behalf of Northwest, sent a letter to Trace, in care of Fox, on January 27, 1998 (“the January 27th letter”). The January 27 letter set forth the terms of the agreement that Fox and Brady had negotiated with regard to “Northwest Broadcasting being the white knight for [Weiss].” Northwest agreed to “bid or cause [Trace] to bid up to One Million Dollars” for the Channel 45 permit.

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Bluebook (online)
140 F. Supp. 2d 336, 2001 U.S. Dist. LEXIS 8433, 2001 WL 409712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weiss-v-northwest-broadcasting-inc-ded-2001.