Shubert Theatrical Company v. Rath
United States Court of Appeals for the Second Circuit
271 Fed. 827 (1921)
Relevant factsFree
Shubert Theatrical Company (plaintiff) contracted with acrobats including Rath (defendant) for exclusive performances for one year, with an option (properly exercised) for a second year; the acrobats refused to perform under the extended option and instead signed with a rival company. Shubert sued to enjoin them from performing for anyone else, the district court granted the injunction, and the defendants appealed, arguing the contract lacked the mutuality required for equitable enforcement.
IssueFree
Whether a covenant for a party's provision of unique services may be negatively enforced by enjoining the party's provision of the services to a third party.