Jam goes to court asking for bond to secure $90 million.
Attorneys for Jam Productions filed a motion in U.S. District Court in Chicago last week seeking a court order for Clear Channel Communications (CCC) to secure the previously awarded $90 million judgment would be paid to Jam.
In March, a Chicago jury awarded more than $90 million to JamSports and Entertainment, a Jam subsidiary, in a suit against CCC subsidiary Clear Channel Entertainment (CCE) and Paradama Productions (dba AMA Pro Racing) regarding promotion of American Motorcycle Assn. (AMA) events.
In court on May 5, Jam attorneys cited a recent negative earnings report issued by Clear Channel, as well as the recent news that CCE chairman/CEO Brian Becker would be stepping down and that CCC would spin off CCE as a separate entity (Billboard, May 14).
“On March 31 [CCC] released an earnings report that showed a dramatic drop in profitability that has triggered a grave concern on our part concerning the company’s financial stability,” Jeffrey Singer, one of the attorney’s for Jam, tells Billboard.biz.
According to Singer, under court rules, when a party wins a judgment for money and the losing party will appeal, the courts have a provision that requires the losing party to secure the obligation to the prevailing party, which can be done through a deposit with the court clerk, a bond from an insurance company, or a letter of credit from a financial institution.
Jam attorneys will be asking the court to change a previous ruling that did not require the bond from CCC. The court will entertain arguments on this motion on May 11 before Judge Matthew Kennelly.
An attorney for CCC could not be immediately reached.