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Case Citation
Legal Case Name

IN RE WORLDCOM, INC. Case Brief

United States Bankruptcy Court, S.D. New York2007
361 B.R. 675 Contracts Bankruptcy Law Entertainment Law

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: Michael Jordan’s damage claim for a rejected endorsement deal was not capped as an “employment contract.” However, the court found he failed to mitigate damages because he intentionally withdrew from the endorsement market, rejecting his “lost volume seller” argument.

Legal Significance: The case clarifies the “lost volume seller” doctrine for personal services, holding that the seller must prove not only the capacity but also the subjective intent to enter into additional contracts, independent of the breach, to be excused from the duty to mitigate.

IN RE WORLDCOM, INC. Law School Study Guide

Use this case brief structure for your own legal analysis. Focus on the IRAC methodology to excel in law school exams and cold calls.

Case Facts & Court Holding

Key Facts & Case Background

Michael Jordan entered into a ten-year endorsement agreement with WorldCom, Inc. (MCI) for an annual compensation of $2 million. In 2002, WorldCom filed for Chapter 11 bankruptcy and, in 2003, rejected the agreement with two years remaining. Jordan filed a claim for the unpaid $4 million for the final two years. WorldCom objected, arguing Jordan failed to mitigate his damages. The undisputed evidence, including testimony from Jordan’s agent and financial advisor, established that at the time of the rejection, Jordan had implemented a business strategy of not accepting new endorsements. This decision was based on a desire to avoid diluting his brand and to cultivate an image more suitable for his primary goal of becoming a majority owner of an NBA franchise. Jordan countered that he was a “lost volume seller” because he had the capacity to take on numerous endorsements simultaneously, and thus had no duty to mitigate. He argued any new deal would have been an additional opportunity, not a replacement for the lost MCI contract.

Court Holding & Legal Precedent

Issue: Is a celebrity endorser who has the capacity to perform additional contracts, but who subjectively intends to reduce their endorsement activities for unrelated business reasons, considered a “lost volume seller” excused from the duty to mitigate damages following a breach of contract?

No. Jordan was not a lost volume seller because he failed to Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat

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IRAC Legal Analysis

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IRAC (Issue, Rule, Analysis, Conclusion) is the exact format professors want to see in your exam answers. Our exclusive Flash-to-Full briefs combine holding, analysis, and rule statements formatted to match what A+ students produce in exams. These structured briefs help reinforce the essential legal reasoning patterns expected in law school.

Legal Issue

Is a celebrity endorser who has the capacity to perform additional contracts, but who subjectively intends to reduce their endorsement activities for unrelated business reasons, considered a “lost volume seller” excused from the duty to mitigate damages following a breach of contract?

Conclusion

This case establishes a significant limitation on the lost volume seller doctrine Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehe

Legal Rule

To qualify as a "lost volume seller" excused from the duty to Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui

Legal Analysis

The court's analysis focused on the requirements of the lost volume seller Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cu

Flash-to-Full Case Opinions

Flash Summary

  • Holding 1: Michael Jordan was an independent contractor, not an employee,
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cup

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