Posted by Lauren Mudrick.
In April 2015, the Entertainment and Sports Performing Network (ESPN) filed a lawsuit in New York Supreme Court against the telecommunications company, Verizon, for breaching a contract. Disney, who owns ESPN, claimed that Verizon made a unilateral decision, with little to no discussion with cable networks, when it released a new cable package called FiOS Custom TV.
The package took channels from basic cable and separated them into smaller specific categories. “ESPN claims that it would have most likely embraced this new innovative package if it were done in compliance with their contractual agreement.” Verizon claims that it is “within the company’s rights under the agreement to give customers these choices, and that this is what the customers want.” 21st Century Fox and NBC Universal joined ESPN in its disagreement with Verizon. These companies too claimed that the FiOS cable package violated their contracts.
A contract is a promise made between parties for which the law recognizes the performance of as a duty, or gives a remedy to the breach of. The said companies had in the past formed a contract with five basic elements: offer, acceptance, consideration, capacity, and legality. With these five elements, the contract is valid unless it is declared voidable or unenforceable. If breached, the courts may rule an equitable remedy for the plaintiff. If Verizon really did go against any element of this contract, ESPN will “be made whole again” by a remedy due from Verizon.
Lauren is a business administration major with a concentration in management at Montclair State University, Class of 2016.