DARGO V. CLEAR CHANNEL COMMUNICATIONS, INC.
2008 WL 2225812 (2008)
NATURE OF THE CASE: Dargo (P) brought suit against Clear Channel (D) alleging promissory
estoppel. D moved to dismiss.
FACTS: P had worked as an on-air radio personality for eight years and was working in a
sales position at WLUP-FM in Chicago, Illinois. Program Director of radio station KDWB in
Minneapolis, Minnesota ('Morris') contacted Pin March of 2007 and began to recruit her for a
morning co-host position. In April of 2007, P and D agreed upon a two-year contract with a
base salary of $60,000 for her first year and a base salary of $63,000 for her second year
with the opportunity to earn additional income through promotional appearances. Morris sent
an offer letter to P via email on April 18, 2007. Morris stated in that email that the
agreed upon two-year employment contract would be forthcoming within a month. P resigned her
position at WLUP-FM and relocated from Chicago to Minneapolis where she signed a one-year
lease for housing. During her employment at KDWB, she received no negative performance
feedback but rather was reassured that everything was going well. P repeatedly inquired
about the status of her two-year contract, and Morris repeatedly told her that the contract
was being drafted and would be ready shortly. In June of 2007, P spoke to Morris, who
assured her that everything was going well and that the contract would be delivered in a day
or two. Morris met with P on June 19, 2007 and terminated her employment effective
immediately. P learned that Clear Channel never intended to enter into a two-year contract
with her and that she actually never had a position at KDWB. D actually wanted to audition P
for a potential position but knowing that she would not agree to relocate without a
guarantee of permanent employment, induced her with the promise of a two-year contract.
Morris and D had no intention to provide such a contract. D informed trade publications that
she was returning to Chicago for 'personal reasons,' knowing that this was false. This
damaged P's reputation and caused her difficulty in finding a new job.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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