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US court asks MEN to pay $ 2.4 mn to ESPN
Sunday, May 2 2004 17:49 Hrs (IST)

New Delhi: In a jolt to Modi Entertainment Networks Ltd (MEN) over a contractual dispute, a US Court has asked it to pay $ 2.4 million to sports channel ESPN.

Rejecting Lalit Modi-controlled MEN's claim for advertising revenues, the Supreme Court of New York allowed the $ 2.4 million counter claim of sports broadcaster towards subscription dues.

"The letter of agreement clearly and unambiguously bases the amount owed to MEN on account of revenue received. But even if parol evidence could be considered to vary, the unambiguous terms of the contracts, the evidence on which MEN relies, fails to support its contention," the jury said in its order passed recently.

MEN's claim was based on the 1995 "side agreement" it had with the ESPN to distribute the sports channel in the country which ended in December 2000.

According to the agreement, ESPN Asia had agreed to pay MEN 50 per cent of all advertising revenue in excess of $ 2.4 million of billed advertising received by the broadcaster during the period from October 16, 1995 to November 16, 1996.

However, ESPN's counter claim was based on the "distribution agreement" and it was undisputed that MEN stopped paying the broadcaster during the last four months.

The jury declined to accept MEN's plea that the sum owed by it was to be paid in Indian Rupees.

When contacted, an MEN official confirmed the jury's order but declined to comment on it and Lalit Modi was not available for comment despite several attempts.

PTI










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