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BROADCASTING CO. v. FLAIR BROADCASTING CORP.

No. 89-2035.

892 F.2d 372 (1989)

BROADCASTING COMPANY OF THE CAROLINAS; Robert A. Schmid, Plaintiffs-Appellants, v. FLAIR BROADCASTING CORPORATION; John N. Boden; J. Timothy Harrington, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided December 27, 1989.

Attorney(s) appearing for the Case

John Bowman McLeod, Lawrence M. Hunter, Jr. (Haynsworth, Marion, McKay & Guerard, Greenville, S.C., Gordon W. Hatheway, Jr., Pierson, Ball & Dowd, Washington, D.C., on brief), for plaintiffs-appellants.

Mary H. Post (Robert A. Goodsell, Irwin & Post, P.A., Roseland, N.J., Frank H. Gibbes, III, Rainey, Britton, Gibbes & Clarkson, P.A., Greenville, S.C., on brief), for defendants-appellees.

Before ERVIN, Chief Judge, WILKINS, Circuit Judge, and BRITT, Chief Judge for the District Court for the Eastern District of North Carolina, sitting by designation.

ERVIN, Chief Judge:

Plaintiffs brought this diversity suit pursuant to the Declaratory Judgment Act, 28 U.S.C. §§ 2201-2202, claiming that, because defendants had breached a stock purchase agreement, plaintiffs were entitled to draw upon letters of credit provided by defendants as an earnest money deposit, and retain the sum of $500,000 so drawn as liquidated damages as provided in the agreement. Defendants' motion to dismiss this case on the basis of improper...

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