Custom Courts, Inc., et al. v. Connor Sport Court International, LLC, et al.

Summary

The United States District Court for the District of Utah denied Plaintiffs’ motion for a temporary restraining order and preliminary injunction against Connor Sport Court International, LLC. The court concluded that Plaintiffs had not demonstrated a likelihood of success on their breach-of-contract claims because they failed to show substantial performance of contractual obligations requiring meetings to address performance shortfalls. The court therefore denied preliminary relief without addressing the remaining preliminary-injunction factors.

Holdings

1. Plaintiffs failed to demonstrate a likelihood of success on the merits because they did not show that they had substantially performed their contractual obligations.
2. The requirement that distributors meet with Connor Sport Court to discuss performance shortfalls and corrective actions was a covenant creating a contractual duty to perform, not an uncertain condition precedent.
3. Plaintiffs' counsel's July 3 letter canceling scheduled individual meetings and proposing only a collective meeting likely constituted an anticipatory breach or otherwise demonstrated nonperformance of the contractual meeting covenants.
4. The court did not need to address irreparable harm, the balance of equities, or the public interest after plaintiffs failed to establish a likelihood of success on the merits.

Questions Presented

1. Whether plaintiffs demonstrated a likelihood of success on their breach-of-contract claims sufficient to obtain a temporary restraining order or preliminary injunction.
2. Whether plaintiffs showed substantial performance of contractual covenants requiring them to meet with Connor Sport Court to discuss performance shortfalls and corrective actions.
3. Whether plaintiffs' cancellation of scheduled individual meetings and proposal of a collective meeting constituted or supported an anticipatory breach or failure to perform their contractual obligations.

Disposition

denied