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Contract Law

Imus Settles With CBS, Seeks New Show

Posted Aug 14, 2007 11:11 AM CDT
By Martha Neil

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Shock jock Don Imus has reportedly agreed to settle a threatened $120 million breach-of-contract suit against CBS Radio for an undisclosed amount, and is in negotiations to return to network radio with ABC.

The confidential settlement agreement includes a clause that requires Imus, who was fired April 12 after making on-air racist remarks disparaging the Rutgers University women's basketball team, not to criticize CBS, according to the Associated Press.

As discussed in an earlier ABAJournal.com post, Imus contended that his firing contravened contractual language that encouraged him to be irreverent and confrontational on-air. Plus, an unusual so-called one-bite clause reportedly required Imus to be warned--once--about bad language before being terminated.

He reportedly signed a five-year contract in 2006 that called for him to be paid nearly $10 million annually, and his threatened lawsuit would have sought reimbursement of the $40 million unpaid balance of the contract.

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