Our client, an entertainment management company, encountered a huge indemnification claim, including liquidated damages, costs for program re-production, substitute guest expenses, sponsor compensation, etc., and a termination notice from the counterparty due to its affiliated artist’s breach of the broadcasting appearance and advertising contract executed between our client and a broadcasting production company.
Our firm significantly reduced the amount of claimed damages and successfully reached a mutually acceptable settlement by contending the grossly unfavorable liquidated damages provision against our client and unreasonably determined substitute guest expenses and sponsor compensation, which was to be offset against the unpaid appearance fees.
