## Facts

- Reier Broadcasting Company, Inc. owned several radio stations and previously held exclusive rights to broadcast Montana State University (MSU) athletic events.
- Reier and MSU’s head football coach, Michael Kramer, entered a personal-services employment contract under which Reier paid Kramer annually in exchange for Kramer’s on-air services, including appearing on a weekly coach’s show during football season and recording commercials.
- The contract included an exclusivity clause prohibiting Kramer from performing on, or allowing his name to be used with, any other radio or television station or program without Reier’s prior written consent.
- MSU later sought competitive bids for its athletics broadcast package; the request for proposals required bidder-provided interviews and a coach’s show featuring Kramer.
- MSU awarded the broadcast contract to another broadcaster and directed Kramer to provide interviews and related services for the successful bidder despite Kramer’s exclusivity clause with Reier.
- Reier sued Kramer for injunctive relief to enforce the exclusivity clause; the district court issued a temporary restraining order but denied a preliminary injunction based on a Montana statute barring injunctions to prevent breach of a contract that cannot be specifically enforced.
- The district court also denied Reier’s motion for relief from judgment, and Reier appealed.

## Issues

1. Whether Montana’s statutory prohibition on injunctions “to prevent the breach of a contract, the performance of which would not be specifically enforced” applies to a negative covenant in a personal-services employment contract.
2. Whether Reier could obtain injunctive relief preventing Kramer from providing comparable broadcasting services to another station during the contract term.

## Decision

- The Montana Supreme Court affirmed the district court’s denial of injunctive relief and denial of post-judgment relief.
- The court held the statute applies to negative covenants within personal-services contracts.
- Because personal-services contracts are not specifically enforceable, an injunction enforcing an exclusivity clause that restrains the employee from working elsewhere is barred.

## Legal Principles

- Specific performance is unavailable for personal-services contracts; courts will not compel an individual to perform personal labor or services.
- A statutory bar on injunctions to prevent breach of a contract not specifically enforceable extends to injunctions enforcing negative covenants in such contracts.
- Equity will not indirectly accomplish specific performance of personal services by issuing a negative injunction that effectively coerces continued performance or prevents the individual from performing the services for others during the contract term.

## Conclusion

Montana law bars injunctive enforcement of an exclusivity clause in a personal-services employment contract when the underlying agreement cannot be specifically enforced, leaving the promisee to pursue remedies other than an injunction.


Reier Broad. Co. v. Kramer, 2003 MT 165, 316 Mont. 301, 72 P.3d 944 (Mont. 2003)