Trademark Properties Incorporated v. A&E Television Networks

422 Fed.Appx. 199 (2011)

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Nature of the Case

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Facts

P is a real estate broker who buys underpriced properties to renovate and sell, engaging in a process commonly known as 'flipping.' P got the bright idea of a television show to document the flipping process. He developed a pilot episode of the show. P submitted the pilot to multiple television networks. D's vice president directed him to deal with Charles Nordlander, director of lifestyle programming for D. P and Nordlander spoke over the phone for a little less than an hour on June 3, 2004, about turning the show into a series. P 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. P claims that Nordlander said 'Okay, okay, I get it.' P argues that by the end of this June 3 telephone conversation he and d, via Nordlander, had entered into an oral contract to produce a television series based on P's pilot and to share all resulting net revenues equally, subject to approval by D's board of directors. Nordlander arranged a conference call shortly thereafter during which P confirmed the terms of the contract with three other representatives of D. Nordlander also arranged a meeting in New York between a production company, Departure Films, and P. With Departure Films on board, filming for the pilot began in August 2004. D's Senior Vice President e-mailed Plaintiff that '[t]he board approved the money for our series.' P and Departure Films then began filming season one. The parties never reduced any oral agreement to writing. They filmed thirteen episodes of 'Flip this House.' The show was a commercial success. The parties could not resolve the matter of P's compensation. D offered to pay P an appearance fee per episode and a five percent share of incremental revenue attributable to the show. P 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 P's participation. D never paid P any money, let alone half of the series' net revenue. D denied ever entering into any contract with P. P sued D for breach of that oral contract demanding approximately $7.5 million in damages. A jury returned a verdict awarding P a little over $4 million, essentially half of the first season's net revenues. The court denied D'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. D appealed.