In an opinion today, Judge Engelmayer granted in part and denied in part the summary judgment motion of SESAC, a company that, similar to BMI and ASCAP, offers the blanket music licenses that allow TV stations to broadcast programs that contain copyrighted music. The TV station plaintiffs allege that the SESAC charges exorbitant prices for “all or nothing” licenses. Judge Engelmayer rejected the plaintiffs’ claims that there was an unlawful conspiracy among the over 20,000 composers and musicians (referred to as “affiliates”) who licensed their music through SESAC, but held that the plaintiffs’ claims could proceed regarding the smaller subset of affiliates who, in exchange for large upfront payments, signed “supplemental” agreements that would discourage them from directly licensing their works. These affiliates were generally the “key” composers whose music was too ubiquitous for TV stations to avoid. As Judge Engelmayer explained:
Continue Reading In Antitrust Challenge to Blanket Music License Program, Judge Engelmayer Allows Narrowed Claims to Proceed
Judge Engelmayer
Judge Engelmayer Rejects Challenge to New York City Discounting Tolls For Certain Residents
The New York City transit system offers residents of Staten Island, the Rockaways, and Broad Channel discounts on the tolls they pay to cross their local bridges, and, in an opinion yesterday, Judge Engelmayer rejected various constitutional challenges to the policy from commuters who don’t get the discounts. For example, he concluded that the policy did not discriminate against interstate commerce:
Continue Reading Judge Engelmayer Rejects Challenge to New York City Discounting Tolls For Certain Residents
Parties May Now E-File Letters to Judges
Judge Engelmayer Denies Motion to Serve by Facebook
Judge Engelemayer Dismisses Putative Class Action Against S&P on SLUSA, Other Grounds
In an opinion issued today, Judge Engelmayer dismissed a putative class action lawsuit brought against rating agency Standard & Poor’s for allegedly fraudulent misstatements contained in its ratings of Fannie Mae preferred stock. The plaintiffs had alleged that S&P’s high ratings of the stock had induced them to buy. Judge Engelmayer dismissed the plaintiffs’ state law securities fraud, common law fraud and negligent misrepresentation claims under SLUSA.
Continue Reading Judge Engelemayer Dismisses Putative Class Action Against S&P on SLUSA, Other Grounds
Judge Engelmayer Rules Chesapeake Can Redeem $1 Billion in Notes Early
Judge Engelmayer yesterday ruled, following a bench trial, that Chesapeake Energy could redeem over $1 billion in notes. The central question was whether Chesapeake was required to complete the redemption in a specified contractual window — effectively requiring the process to begin beforehand — or whether notice in the timeframe would suffice. (For our prior post on the case, click here.) As Judge Engelmayer observed, “[l]ots of money turns on this dispute. Because the 2019 Notes bear an attractive interest rate of 6.775%, redeeming them at par plus interest is, in today’s low-interest-rate environment, far more advantageous to Chesapeake than its other contractual options.” Judge Engelmayer ruled in Chesapeake’s favor, even though the contract language was not perfectly clear: “The Court is . . . presented with a choice between two constructions offered of [the contract provision in dispute]. One (Chesapeake’s) is imperfect but reasonable. The other (BNY Mellon’s) is incoherent and unreasonable. There are no other reasonable constructions . . . .” Judge Engelmayer was also convinced by the extrinsic evidence:
Continue Reading Judge Engelmayer Rules Chesapeake Can Redeem $1 Billion in Notes Early