Cingular Wireless bought out its rival AT&T Wireless in 2004 for some $41 billion. According to court

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Cingular Wireless bought out its rival AT&T Wireless in 2004 for some $41 billion. According to court filings, Cingular then launched an aggressive program to halve the broadcast tower rental amounts paid under contracts with more than 15,000 landlords. One such landlord, the City of Parma, Ohio, whose rent was $4,000 per month, subsequently brought a class action suit on behalf of tower owners for anticipatory breach of their contracts. Parma alleged that Cingular’s buyout of AT&T necessitated that the wireless corporation reduce its expenses by some $900 million a year. Reducing tower rentals would provide a large part of the necessary revenue savings. As a consequence, Cingular threatened that, should landlords not allow the halving of their rentals they would be left out of the network it was forming by consolidating the coverage areas from its and AT&T’s towers. Was the threat an anticipatory breach? Why or why not? (Parma, City of, v. Cingular Wireless L.L.C., No. 05-4107, 6th Cir. Sept. 8, 2006)

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