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Advertising Specialty Institute v. Hall-Erickson, Inc.

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ARGUED SEPTEMBER 21, 2009

Before CUDAHY, WOOD, and TINDER, Circuit Judges.

In 2001, Advertising Specialty Institute (ASI) and The Motivation Show entered into a contract that purported to form a “strategic alliance” to “promote the professional use of promotional products and distributors.” The parties agreed to provide “ASI with the right of first refusal concerning any activity, alliance, or opportunity concerning the promotional product/advertising specialty industry.” The present dispute arises from The Motivation Show’s co-locating a trade show in Chicago with Promotional Products Association International (PPAI), which is ASI’s close competitor. The district court found that, in doing so, the defendants (collectively, “The Motivation Show”) breached their contract with ASI by failing to honor the latter’s right of first refusal. However, in light of ASI’s failure to prove damages with reasonable certainty, the court awarded nominal damages in the amount of one dollar. ASI contends that the district court committed clear error in finding insufficient proof of damages. The Motivation Show cross-appeals the district court’s liability determination. For the reasons that follow, we affirm the holding of the district court in all respects.

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