American Broadcasting-Paramount Theatres, Inc. v. American Mfrs. Mutual Insurance Co – Case Brief Summary (New York)

In American Broadcasting-Paramount Theatres, Inc. v. American Mfrs. Mutual Insurance Co., 42 Misc 2d 939, 249 N.Y.S.2d 481 [NY Sup Ct 1963], aff'd, 20 AD2d 890, 251 N.Y.S.2d 906 [1st Dept 1964]), defendants breached a contract in which they agreed to sponsor a television program on 130 stations on plaintiff's television network.

Defendants asserted, as an affirmative defense, that the contract was unenforceable because it was part of an "illegal tie-in," as plaintiff had required defendant "to sponsor the show on 35 stations they did not want in order to get the sponsorship on 95 stations that defendants did want" (Id. at 942).

Supreme Court found that the contract was valid on its face and did not create a restraint forbidden by the Sherman Act and, as a result, defendant's antitrust affirmative defense was insufficient (Id.).