Details

Autor(en) / Beteiligte

• Donath, Bob

Titel

JUDGE BACKS SOLE LIABILITY CONCEPT, RULES IN FAVOR OF STOKELY VS. CBS

Ist Teil von

• Advertising age, 1977-10, Vol.48 (41), p.1

Ort / Verlag

Chicago: Crain Communications, Incorporated

Erscheinungsjahr

1977

Link zum Volltext

Beschreibungen/Notizen

• A FEDERAL DISTRICT COURT JUDGE RULED LAST WEEK THAT CBS INC., THE LARGEST CREDITOR OF THE ONCE POWERFUL BUT NOW DEFUNCT LENNEN & NEWELL AGENCY, HAS NO RIGHT TO DEMAND ABOUT $400,000 IN MEDIA PAYMENTS FROM CLIENT STOKELY-VAN CAMP. CBS SUED STOKELY IN 1972 FOR TIME L&N BOUGHT ON THE CLIENT'S BEHALF IN 1970-1971. AT THAT POINT, THE GIANT AGENCY HAD ALREADY DECLARED BANKRUPTCY. CBS CLAIMED THAT ITS CONTRACTS SPECIFIED THAT STOKELY SHOULD MAKE GOOD ON THE AGENCY'S DEBT EVEN THOUGH STOKELY HAD ALREADY PAID THE AGENCY. STOKELY ARGUED THAT L&N HAD ASSUMED SOLE LIABILITY FOR MEDIA PAYMENT AND THAT CBS HURT ITS CASE BY EXTENDING CREDIT TO THE AGENCY EVEN WHEN THE NETWORK KNEW THAT L&N WAS IN BAD FINANCIAL SHAPE. THE COURT ESSENTIALLY UPHELD STOKELY'S DEFENSE, NOTING THAT THE NETWORK FAILED TO TELL STOKELY ABOUT L&N'S FINANCIAL WOES AND SLOW PAYMENT PRACTICES.