Overview
(October 30, 2023, Washington, DC) – On October 15, 2023, the District Court, Arapahoe County, Colorado granted Steptoe client DISH Network LLC (DISH) a decisive victory in its dispute with Pac-12 Network, LLC (Pac-12) over license fee rebates.
DISH carries the Pac-12 Network on its pay-television platform pursuant to a license agreement with Pac-12. In 2022, Pac-12 sued DISH for breach of contract in Colorado state court, asserting that DISH had improperly calculated rebates due to it based upon Pac-12's shortfalls in airing a guaranteed minimum number of football games during the COVID-19 pandemic. Pac-12 challenged DISH's offset of its claimed rebates pursuant to the "Guaranteed Minimum Events" provision and alleged that DISH owed Pac-12 substantial licensing fees. Pac-12 also sought injunctive relief against DISH to bar DISH from claiming any additional rebates for future contract years.
DISH moved to dismiss Pac-12's Complaint for failure to state a claim upon which relief may be granted. On behalf of DISH, Steptoe argued that the contract, which was incorporated by reference in the Complaint, unambiguously supports DISH’s rebate calculations. While Pac-12 asserted that DISH might only receive one rebate for a shortfall occurring in one year, DISH demonstrated that the contract’s three-year rolling average minimum guarantee provisions allowed it to claim rebates across three years based on the extreme shortfall that occurred in 2020, with a near elimination of varsity football games airing on the Pac-12 network. By decision dated October 15, 2023, the judge endorsed all of Steptoe's arguments, finding that the "Guaranteed Minimum Event" provisions in the contract fully supports DISH's rebate position – that DISH is entitled to rebates across three contract years for Pac-12's failure to satisfy the three-year rolling average minimum guarantee. The court dismissed the complaint with prejudice, and rejected Pac 12’s request for leave to replead.
Steptoe's litigation team was led by partner Elyse D. Echtman, with the assistance of associate Sonja Arndt-Johnson. Pac-12 was represented by Covington & Burling.
About Steptoe
In more than 100 years of practice, Steptoe has earned an international reputation for vigorous representation of clients before governmental agencies, successful advocacy in litigation and arbitration, and creative and practical advice in structuring business transactions. Steptoe has more than 500 lawyers and other professional staff across offices in Beijing, Brussels, Chicago, Hong Kong, London, Los Angeles, New York, San Francisco, and Washington. For more information, visit www.steptoe.com.
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