Trademark Properties Inc. v. a & E Television Networks

422 F. App'x 199
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 11, 2011
Docket09-1825
StatusUnpublished
Cited by1 cases

This text of 422 F. App'x 199 (Trademark Properties Inc. v. a & E Television Networks) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trademark Properties Inc. v. a & E Television Networks, 422 F. App'x 199 (4th Cir. 2011).

Opinions

BALDOCK, Senior Circuit Judge:

Plaintiff Richard C. Davis approached Defendant A & E Television Networks with the concept that he maintains became the reality television series “Flip This House.”1 This dispute arises out of the parties’ disagreement over an alleged oral agreement to split equally net revenues of the show. Plaintiff sued Defendant in state court for breach of that oral contract in 2006, demanding approximately $7.5 million in damages, ie., half of the net revenues from the three seasons that had completed filming prior to trial.2 Defendant successfully removed the case to federal court on the basis of diversity jurisdiction. After five days of trial in South Carolina federal district court, a jury returned a verdict awarding Plaintiff a little over $4 million, essentially half of the first season’s net revenues. The district court subsequently denied Defendant’s motions for judgment as a matter of law and a new trial pursuant to Fed.R.Civ.P. 50(b) and Fed.R.Civ.P. 59, respectively. Defendant argues we should reverse and direct judgment in its favor because the evidence was legally insufficient to support a finding of an oral contract under New York law or, alternatively, order a new trial because of claimed errors in jury instructions and evidentiary rulings. We exercise our appellate jurisdiction provided by 28 U.S.C. § 1291. After careful review of the record submitted on appeal, we affirm the district court’s denial of Defendant’s motions for judgment as a matter of law and a new trial.

I.

We review the district court’s denial of Defendant’s Rule 50(b) motion for a judgment as a matter of law de novo. Sloas v. CSX Transp. Inc., 616 F.3d 380, 392 (4th Cir.2010). In conducting that review, we ask “ ‘whether there was a legally sufficient evidentiary basis for a reasonable jury, viewing the evidence in the light most favorable to the prevailing party, to find for that party. If reasonable minds could differ about the verdict, we are obliged to affirm.’ ” King v. McMillan, 594 F.3d 301, 312 (4th Cir.2010) (quoting ABT Bldg. Prods. Corp. v. Nat’l Union Fire Ins. Co., 472 F.3d 99, 113 (4th Cir.2006)) (internal citations omitted); see also Fed.R.Civ.P. 50(a)(1) (providing a court may grant a party judgment as a matter of law if “a reasonable jury would not have a legally sufficient evidentiary basis to find for” the nonmoving party). We review the entire record, “disregard[ing] all evidence favorable to the moving party that the jury is not required to believe.” Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 151, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000).

II.

Given that standard of review, we have gleaned and so present the following facts necessary to explain our holding. Plaintiff is a South Carolina real estate broker who buys underpriced properties to renovate and sell, engaging in a process we are told is commonly known as “flipping.” In 2003, [202]*202Plaintiff conceived of the idea of a television show to document the flipping process and later developed a pilot episode of the show. In 2004, Plaintiff submitted the pilot to multiple television networks, including Defendant. Defendant’s vice president directed him to deal with Charles Nordlander, director of lifestyle programming for Defendant.

After Nordlander viewed the pilot, the two spoke over the phone for a little less than an hour on June 3, 2004 about turning the show into a series. Essentially, Plaintiff proposed that he would assume all of the financial risk relating to the purchase and resale of the real estate but that they would otherwise equally split the net revenues of the television show. In response to Plaintiffs offer, Plaintiff maintains Nordlander said “Okay, okay, I get it.” Thus, Plaintiff argues that by the end of this June 3 telephone conversation he and Defendant, via Nordlander, had entered into an oral contract to produce a television series based on Plaintiffs pilot and to share all resulting net revenues equally, subject to approval by Defendant’s board of directors.

Plaintiff testified that Nordlander arranged a conference call shortly thereafter during which Plaintiff confirmed the terms of the contract with three other representatives of Defendant. Nordlander also arranged a meeting in New York on June 14 between a production company, Departure Films, and Plaintiff. With Departure Films on board, filming for the pilot began in August 2004. In March 2005, Defendant’s Senior Vice President e-mailed Plaintiff that “[t]he board approved the money for our series.” Plaintiff and Departure Films then began filming season one.

The parties never reduced any oral agreement to writing. Nonetheless, they filmed thirteen episodes of “Flip this House.” By all accounts, the show was a commercial success. But, as must be the case since the parties came knocking on the Court’s door, their business relationship fell apart in 2006. The parties could not resolve the matter of Plaintiffs compensation. Defendant offered to pay Plaintiff an appearance fee per episode and a five percent share of incremental revenue attributable to the show. Plaintiff rejected that offer and signed a talent agreement with another television network. Defendant went on to produce three more seasons of “Flip this House” without Plaintiffs participation. Defendant never paid Plaintiff any money, let alone half of the series’ net revenue, for his role in its production. At trial, Defendant denied ever entering into any contract with Plaintiff.

III.

We start by setting forth the principles of contract law relevant to Defendant’s claim that it is entitled to judgment as a matter of law. “[Bjecause the matter is before us in diversity, we are bound by the applicable state substantive law.” Benner v. Nationwide Mut. Ins. Co., 93 F.3d 1228, 1234 (4th Cir.1996). And, because neither party contests the district court’s ruling that New York law controls, we apply the laws of New York.

Absent prohibition by the statute of frauds, oral contracts are just as binding as written contracts under New York law.3 Stein v. Gelfand, 476 F.Supp.2d 427, 431 (S.D.N.Y.2007). To establish Defendant breached their oral contract, Plaintiff must, of course, first prove that they formed such a contract. Cleveland Wreck[203]*203ing Co. v. Hercules Constr. Corp., 23 F.Supp.2d 287, 292 (E.D.N.Y.1998). “ ‘To form a valid contract under New York law, there must be an offer, acceptance, consideration, mutual assent and intent to be bound.’ ” Register.com, Inc. v. Verio, Inc., 356 F.3d 393

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422 F. App'x 199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trademark-properties-inc-v-a-e-television-networks-ca4-2011.