How saying ‘OK, OK’ cost firm $4 million
An appellate court recently has found that the creator of a TV show reasonably interpreted a producer’s informal statement “OK, OK, I get it,” as an acceptance of his offer and that an agreement the parties reached was not indefinite as to the categories included in determining net royalties. The case turned on comments made during negotiations by Richard C. Davis, founder of Trademark Properties Inc., a company specializing in buying, remodeling and selling houses for profit. He discussed whether his business could be the fodder for a reality television series with Charlie Nordlander, an A&E Executive. Their negotiations led the parties to agree to jointly develop and produce the television series “Flip This House.” The parties agree specifics of their agreement were never written down. Still, the series pilot and thirteen episodes of Flip This House were filmed. Then Davis and A&E disputed how to divide the show’s net revenues. And from there sprang a lawsuit. Davis claimed he and A&E should split all net revenues 50-50; A&E denied it had agreed to the terms claimed by Davis. He filed a state-court action against A&E for breach of oral contract. A&E got the action moved to federal court. A jury found in Davis’ favor, awarding $4 million in damages for half of all net revenues from the show. A&E appealed to the Fourth Circuit Court of Appeals, contending the evidence was insufficient to support a finding of a...
Read More
Recent Comments