Jefferson-Pilot Communications Co. v. Phoenix City Broadcasting, Ltd.

421 S.E.2d 295, 205 Ga. App. 57, 92 Fulton County D. Rep. 1186, 1992 Ga. App. LEXIS 1068
CourtCourt of Appeals of Georgia
DecidedJune 24, 1992
DocketA92A0547, A92A0548, A92A0549
StatusPublished
Cited by28 cases

This text of 421 S.E.2d 295 (Jefferson-Pilot Communications Co. v. Phoenix City Broadcasting, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson-Pilot Communications Co. v. Phoenix City Broadcasting, Ltd., 421 S.E.2d 295, 205 Ga. App. 57, 92 Fulton County D. Rep. 1186, 1992 Ga. App. LEXIS 1068 (Ga. Ct. App. 1992).

Opinions

McMurray, Presiding Judge.

These appeals are taken from the verdict and judgment in a multi-faceted litigation arising from a contract for the purchase and sale of a radio station. In 1980, Michael R. Hollis learned that the Federal Communications Commission (“FCC”) was accepting applications for a permit to build and operate a 50,000-watt radio station in the Atlanta area. Hollis formed a corporation, Phoenix City Broadcasting Company of Atlanta, Inc., which in turn formed a limited partnership, Phoenix City Broadcasting, Ltd. of Atlanta. The permit to build the radio station was granted to this partnership in 1985.

Soon after the grant of the construction permit, the partnership entered into negotiations for the sale of the radio station to Jefferson-[58]*58Pilot Communications Company (“Jefferson-Pilot”). On April 9, 1987, Jefferson-Pilot and the partnership entered into an “Asset Purchase Agreement” concerning the sale and purchase of the radio station. This agreement reflected the restrictive effect of regulations of the Federal Communications Commission which prohibited the owner of a broadcast property from deriving a profit on the sale of an unbuilt station. The Asset Purchase Agreement provided that the partnership would have the transmitter facility constructed according to plans and specifications approved by Jefferson Pilot, and contemplated a transfer of the broadcast license after the station was completed and the partnership received program test authority. Upon satisfaction of a number of conditions precedent, including FCC approval of an assignment of the partnership’s authorization for the station, Jefferson-Pilot was to purchase the radio station. The purchase price Jefferson-Pilot agreed to pay included reimbursement of pre-approved costs of construction, $1,500,000 cash and $500,000 worth of advertising time to the partnership. Although not a part of the purchase price for the assets, the agreement provided that on the closing date Jefferson-Pilot and Hollis would enter into a non-compete and consulting agreement under which Hollis would be paid $1,000,000 in cash over four years.

The partnership obtained financing for the construction of the station through H. J. Russell and Company, which later brought in The First National Bank of Atlanta (“First Atlanta”) as a participating lender. H. J. Russell and Company assigned its rights under the loan documents to First Atlanta. The partnership, Jefferson-Pilot, H. J. Russell and Company, and First Atlanta executed an “Acknowledgement, Consent and Estoppel” in which the partnership and Jefferson-Pilot agreed to notify First Atlanta of any collateral default under the Asset Purchase Agreement, and agreed that under such circumstances First Atlanta could exercisé any of the rights of the partnership under the Asset Purchase Agreement.

The partnership and Hollis employed Paul L. Whitney to oversee certain aspects of construction of the radio station. On July 31, 1987, Jefferson-Pilot paid $15,818 to Whitney, who was close to leaving the project due to non-payment.

During the course of construction of the radio station a disagreement developed between Jefferson-Pilot and the partnership concerning which party was to be responsible for certain of the construction costs. Jefferson:Pilot offered a lower purchase price than that stated in the Asset Purchase Agreement as a settlement of the issue and on May 20, 1988, sent a letter to H. J. Russell and Company and First Atlanta describing the friction between the parties.

On April 7, 1988, the new radio station began broadcasting and on April 18, 1988, a joint application for transfer of ownership was [59]*59filed with the FCC. Nonetheless, the disagreement as to construction costs had not been resolved and the potential audience of the new station had declined, when on July 7, 1988, Jefferson-Pilot notified the partnership that it was terminating the Asset Purchase Agreement.

The partnership succeeded in subsequently selling the radio station to another buyer at a lower price. Meanwhile, this litigation began when Jefferson-Pilot filed a breach of contract action in the State Court of Fulton County seeking return of $150,000 in earnest money advances. Jefferson-Pilot named the partnership and Phoenix City Broadcasting Company of Atlanta, Inc. as defendants. The partnership filed a counterclaim for breach of contract and tortious interference with contractual relationships, and Hollis filed an action against Jefferson-Pilot for tortious interference and breach of contract. These actions were consolidated and transferred to the superior court for trial.

The breach of contract claims raised by the partnership and Hollis were predicated on the termination of the Asset Purchase Agreement, while the tortious interference claims were predicated on the payment to Whitney and on the May 20, 1988, letter from Jefferson-Pilot to H. J. Russell and Company and First Atlanta.

On the trial of the case, the jury returned a verdict in favor of Jefferson-Pilot on its breach of contract claim to recover the $150,000 earnest money from the partnership and Phoenix City Broadcasting Company of Atlanta, Inc., and on the partnership’s counterclaim for breach of contract. On the tortious interference of contract claims against Jefferson-Pilot, the jury returned a verdict in favor of Hollis, awarding no damages, and in favor of the partnership, awarding damages in the amount of $1,150,000.

Three appeals are taken from the judgment entered on this verdict. In Case No. A92A0547, Jefferson-Pilot enumerates as error the denial of its motions for judgment notwithstanding the verdict and motion for directed verdict against the partnership on the issue of tortious interference with a contract. In Case No. A92A0548, the partnership and Phoenix City Broadcasting Company of Atlanta, Inc. appeal the denial of their motion for judgment notwithstanding the verdict and motion for directed verdict in regard to Jefferson-Pilot’s breach of contract claim, and in regard to the partnership’s breach of contract claim against Jefferson-Pilot, as well as the trial court’s failure to appropriately consider the partnership’s motion for the trial court to determine the award of damages, or, in the alternative to order a new trial as to damages only on its tortious interference claim against Jefferson-Pilot. Hollis appeals in Case No. A92A0549, enumerating as error the trial court’s refusal to grant his motion for judgment notwithstanding the verdict on his breach of contract claim [60]*60against Jefferson-Pilot, refusal to give a requested charge to the jury, grant of Jefferson-Pilot’s motion for judgment notwithstanding the verdict on his tortious interference claim, and denial of Hollis’ motion for the trial court to determine damages or, in the alternative, for the order of a new trial. Held:

1. In Case No. A92A0547, Jefferson-Pilot relies upon the proposition that a claim for tortious interference with contractual relations is viable only when the interference is done by one who is a stranger to the contract. Piedmont Cotton Mills v. H. W. Ivey Constr. Co., 109 Ga. App. 876, 879 (137 SE2d 528). See also Jet Air v. Nat. Union Fire Ins. Co., 189 Ga. App. 399 (375 SE2d 873) and Sheppard v. Post, 142 Ga. App. 646, 647 (1) (236 SE2d 680). While Hollis and the partnership contend that Jefferson-Pilot was a stranger to the contracts between the partnership and its lenders, and to the contract between Whitney and the partnership, the record shows otherwise.

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Bluebook (online)
421 S.E.2d 295, 205 Ga. App. 57, 92 Fulton County D. Rep. 1186, 1992 Ga. App. LEXIS 1068, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-pilot-communications-co-v-phoenix-city-broadcasting-ltd-gactapp-1992.