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Arbitron, Inc. v. Tralyn Broadcasting, Inc.
United States Court of Appeals for the Second Circuit
400 F.3d 130 (2005)
Arbitron, Inc. (Arbitron) (plaintiff) entered into an agreement with Tralyn Broadcasting, Inc. (Tralyn) (defendant), under which Arbitron would allow Tralyn’s single radio station to use Arbitron’s listener data reports, and Tralyn would pay Arbitron a monthly licensing fee. The agreement included an escalation clause, under which Arbitron could increase the monthly license fee if Tralyn, or its successors, purchased or began to control additional radio stations. Tralyn was purchased by JMD, Inc. (JMD) (defendant), which controlled additional radio stations. Arbitron increased the monthly license fee to reflect JMD’s additional stations, but JMD refused to pay. Arbitron sued Tralyn and JMD for breach of contract. The district court granted summary judgment for JMD, finding the escalation clause impermissibly vague because it did not provide any basis for determining the new monthly license fee. Arbitron appealed.
Rule of Law
Holding and Reasoning (Calabresi, J.)
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