Reier Broadcasting Company, Inc. v. Kramer

Summary

The Supreme Court of Montana affirmed the denial of Reier Broadcasting's request for injunctive relief against Michael Kramer under an employment agreement containing an exclusivity clause. The court held that Montana Code § 27-19-103(5) prohibits injunctive enforcement of a negative covenant in a personal-services contract when specific performance of the contract would not be available. A dissent would have permitted consideration of a preliminary injunction and argued that the parties were estopped from challenging the contract's enforceability.

Holdings

1. Montana Code Annotated § 27-19-103(5) prohibits the use of injunctive relief to enforce negative covenants contained in personal-services contracts when the underlying personal-services obligation cannot be specifically enforced.
2. Reier Broadcasting was not entitled to enjoin Kramer from performing services for Clear Channel or other competitors during the life of the employment agreement.

Questions Presented

1. Whether Montana Code Annotated § 27-19-103(5) prohibits injunctive relief enforcing a negative covenant in a personal-services contract when the underlying personal-services obligation cannot be specifically enforced.
2. Whether Reier Broadcasting was entitled to an injunction preventing Kramer from performing services for Clear Channel or other competitors during the remaining term of the employment agreement.

Disposition

affirmed