In Re Worldcom, Inc.

361 B.R. 675 (2007)

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Nature of the Case

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Facts

In 1995, Jordan and MCI entered into an endorsement agreement. MCI got a ten-year license to use Jordan’s name, likeness, and personal services from September 1995 to August 2005. Jordan could endorse other products but not the same as those offered by MCI. Annual compensation was $2 million per year. Jordan was to be treated as an independent contractor and that Jordan was to be available for four days not to exceed four hours per day to produce television commercials, etc. All content was to be submitted to Jordan for his approval. In 2002, MCI filed for chapter 11. Jordan eventually filed a $8 million claim for the payments that were due from 2002-2005. MCI does not object to $4 million but rejects the remaining $4 million. MCI asserts that Jordan did not mitigate his damages and filed for summary judgment. Jordan claims he was a lost volume seller and thus mitigation does not apply, there was no evidence that he could have entered into substantially similar endorsement agreements, he acted reasonably when he decided not to pursue other endorsements after MCI’s rejection of the agreement.