In order to raise money, and also as a service to its residents, Capital City decided to attempt to hire Rock of Ages, a popular rock and roll band to perform at Capital City's Downtown Auditorium. The Auditorium booking office contacted the band's agent and began negotiations for the concert. As part of the negotiations, the band's manager was flown in to Capital City to examine the facilities at the Auditorium to determine whether they were suitable for the band. Captial City's expenses in bringing the manager to Capital city and paying for his food and lodging while he was in town amounted to $500.

A deal was ultimately concluded for the band to play at the Auditorium on July 15, 1986. Under the terms of the contract the band was required to perform two (2) shows lasting one and one-half hours each; one from 7:30 to 9:00 and another from 10:00 to 11:30, with a ten minute break during each show. The band was required to provide its own sound system, but the city was required to provide a crew to assist in assembling the system in the auditorium.

The contract provided, as well, for payment to the band of $100,000 or 50% of the profits from the show, whichever was greater.

Shortly thereafter, and before any public announcement had been made about the concert, Suburban Auditorium, Inc, located in the suburbs surrounding Capital City, contacted Rock of Ages' manager about having the band perform in Suburban Auditorium. Since Suburban began the discussions by indicating that it thought that it would be able to guarantee the band a $300,000 minimum from the concert, the manager listened and didn't tell the representative from Suburban about the deal that had already been made with Captial City. Because of the large sum involved, the band's manager decided, on behalf of the band, to enter into the contract with Suburban to perform at Suburban Auditorium on July 15, 1986 even though it would mean that the band would be unable to perform their contractual obligations with Captial City. Therefore, Rock of Ages entered into a contract with Suburban for the performance.

The first indication that anything was amis occurred when, in mid- June, Downtown began its advertising campaign for the concert. Downtown initiated its media blitz by contracting for a weeklong series of one-page ads in the local Capital City Courier newspaper for a price of $30,000. In addition, Downtown paid a total of $10,000 for the preparation of a series of radio and television ads, designed to attract attention to the impending concert, and contracted with the local radio and television stations for time in which to air the advertisements at an additional cost of $60,000.

Captial City's ad campaign began on June 20. Immediately, of course, officials of Suburban Colisium contacted both Downtown and the band to inquire about the situation. It was at this point that Downtown iscovered that the band had entered into a separate contract that would make its performance at Downtown Auditorium impossible. The band, attracted by the promise of a higher profit from the Suburban concert insisted that it would perform at Suburban on July 15, instead of performing at Downtown Auditorium

Downtown immediately attempted to convince Suburban to cancel its performance with the band, but Suburban, fearful of becoming liable to the band for lost profits, refused.

Because of the publicity for the concert paid for by Downtwon, Suburban realized that it would not have to engage in nearly as extensive an advertising campaign as it had originally planned on. Therefore, Suburban only spent half of the $100,000 it had budgeted for publicity to promote the concert.

ASSUME THAT YOU REPRESENT CAPTIAL CITY. DRAFT A LETTER, TO BE SENT TO THE BAND'S ATTORNEY, WHICH ANALYZES THE CITY'S POTENTIAL REMEDIAL RIGHTS AGAINST THE BAND BECAUSE OF ITS REFUSAL TO PERFORM AT DOWNTOWN COLISIUM ON JULY 15.