A&E told to pay Davis
'Flip This House' trial ends with $4 million judgment against network
Cable network A&E sought to portray local real estate investor Richard C. Davis as someone who came to believe wrongly that he and the network had an oral agreement to split the profits from the reality television show "Flip This House."
Davis
But a federal jury didn't buy it, saying Davis' interpretation of the business relationship wasn't so far-fetched.
The 12-member panel unanimously awarded Davis and his James Island-based Trademark Properties Inc. more than $4 million in damages in the breach of contract trial that wrapped up this week.
The jurors spent at least five hours in deliberations before reaching their verdict Wednesday afternoon in a downtown Charleston courtroom.
Davis put his right hand over his eyes and sobbed from his chair upon hearing the decision. His employees and reality TV co-stars Ginger Alexander and Dawn Nosal cried together from the second row behind him Davis' attorney, Frank Cisa, argued in his closing remarks that his client should receive more than $7.5 million in damages from three seasons of "Flip This House." Only the show's first season, in which Davis was credited as a creator, featured him and his Trademark Properties team. After splitting with A&E, the crew joined competing network TLC for the series "The Real Deal."
Previous stories
Attorney: A&E owes $7.5M; Jury deliberation to continue Wednesday, published 11/11/08
Witness denies any 50/50 deal; No such 'Flip This House' conversation ever took place, Norlander tells jury, published 11/08/08
Trial testimony becomes testy; 'You stole my possession,' Davis says to A&E lawyer during 'Flip This House' case, published 11/07/08
Davis ripped in court; James Island native claims A&E violated verbal deal, published 11/06/08
Deal at heart of lawsuit; Davis says he agreed to 50-50 split for 'Flip This House'; A&E says not, published 11/04/08
Before dismissing them, U.S. District Court Judge C. Weston Houck asked the jurors to itemize the damages they awarded Davis.
"To give us just a little idea of how you arrived at that figure," Houck said.
Minutes later they returned with a breakdown: more than $3.9 million, or half the net profit from the first season; and nearly $108,000 in international revenue.
Davis would not comment immediately following the verdict and could not be reached later in the day. Cisa made only brief statements after the trial concluded.
"I'm very pleased with the verdict," Cisa said. "It was a tough case. It's very tough to prove you had an oral contract with a major network."
Attorneys for A&E declined to comment, but a network spokesman said the case is not over.
"We're deeply disappointed in the jury's decision, and we plan to follow the appropriate steps to get the verdict reversed," said Michael Feeney, senior vice president of corporate communications.
The trial began Nov. 3, and jury deliberations began late Monday. Federal court was closed Tuesday for Veterans Day, and deliberations resumed Wednesday.
A&E's attorneys asked Houck to dismiss the case early on, which could conceivably be the basis for a request to reverse the verdict, said Charleston School of Law professor Gerald Finkel.
A&E could argue that Houck should have granted the dismissal at the close of Cisa's evidence, before the case was allowed to go to the jury, Finkel said.
He said the defense has ten days to make such a filing, which is a precursor to an appeal.
Reach Allyson Bird at 937-5594 or abird@postandcourier.com.
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Comments
majorjohnson (anonymous) says...
A verbal deal on a multi-million dollar project? This guy is too stupid to get any money out of this even if the deal was actually made. Jury's are well known to act like government when it comes to handing out peoples money, and I suspect that was the case here. I also suspect the decision will be overturned on appeal.
November 13, 2008 at 7:59 a.m. ( permalink | suggest removal )
jane_doe01 (anonymous) says...
I dont understand how you can do a national tv show and not have anything in writing...or maybe im just the only one with sense. He is lucky that he even got anything for being so stupid.
November 13, 2008 at 8:50 a.m. ( permalink | suggest removal )
mendelsd (anonymous) says...
Davis is a crook who has snowed several local charities out of money!
I can't believe the jury bought into his lies!!!!
November 13, 2008 at 9:27 a.m. ( permalink | suggest removal )
turdblossom (anonymous) says...
Having watched his show and heard some stories about this guy's life behind the camera he comes off as a bit of an arrogant ass. Redneck with a big bank account, what the hell does he need another $4 million for?
November 13, 2008 at 12:12 p.m. ( permalink | suggest removal )
BulldogTLC (anonymous) says...
What does A&E need with another $4 million? He may be arrogant, but that doesn't mean that he should be taken advantage of. From other articles I've read on this same story, he had entered negotiations with an executive who is no longer employed at A&E, so I would assume that they were probably in the process of working out a contract.
November 13, 2008 at 1:05 p.m. ( permalink | suggest removal )
DCartisan (anonymous) says...
People are saying that Richard is at fault because he did not have a contract, what about A&E? Why would they not have a contract to protect themselves? There is blame to go around all sides in this lawsuit. I bet they have all learned a lesson and will be a lot wiser in future business negotiations.
November 13, 2008 at 1:20 p.m. ( permalink | suggest removal )
turdblossom (anonymous) says...
...he was given a show that ran it's course, and I'm sure he got a pretty penny for doing it...what did he expect to get a 5 year deal like Seinfeld?? This story just smacks of money grubbing litigation.
November 13, 2008 at 1:28 p.m. ( permalink | suggest removal )
Thefutureisnow (anonymous) says...
I met this guy once at a Christmas party. He is a down to Earth, no-nonsense kind of person. I believe Davis when he says there was a oral agreement. What will happen now is the network's lawyers will drag this on as long as they can. He may not see a dime of this money for years to come.
November 13, 2008 at 2 p.m. ( permalink | suggest removal )
strongjohn10856 (anonymous) says...
As someone who works with contracts all the time, it's not at all unusual for an oral agreement to be reached before being finalized on paper, and, in law, an oral agreement is just as binding as one on paper, as this suit shows. Yes, both parties would have been smarter to have gotten it in writing and I'm sure both will be more careful to do so in future.
November 13, 2008 at 2:13 p.m. ( permalink | suggest removal )
turdblossom (anonymous) says...
That said, I can't believe they were willing to give him 4 million for that show; after two or three epsiodes it really got old....'Richard buys delapitated house, Ginger gets pissed at contractors, Richard tells off the contractors (the whole time demonstrating what an awesomely terrific dude he is by filming himself helping someone down on their luck), Ginger goes over budget, house gets finished' . I guess if A&E had bad enough judgement to pay that much for that kind of programming then more fool them!
November 13, 2008 at 2:34 p.m. ( permalink | suggest removal )
BulldogTLC (anonymous) says...
Actually, turd, the way I understand it, he came up with the concept of the show and presented it to A&E. Therefore he was the "idea" behind the show that they have expanded upon since he left and started his own show over on TLC. So it would have been like Sienfeld approaching ABC with an idea for a show, making a few episodes with him , then canning him and hiring someone else to play his role on the show that came up with. I'm glad he got paid.
November 13, 2008 at 2:41 p.m. ( permalink | suggest removal )
turdblossom (anonymous) says...
fair enough Bulldog, but I still think $4 mil is a little excessive.
November 13, 2008 at 2:51 p.m. ( permalink | suggest removal )
HighDef (anonymous) says...
Modern day Bob Vila ! Now he can build the new "world headquarters" for Trademark.
November 13, 2008 at 4:35 p.m. ( permalink | suggest removal )
NativeSC (anonymous) says...
I just find it difficult to believe that a supposed savvy businessman came up with this idea and didn't have anything in writing. It makes no sense at all. As far as him being taken advantage of, he has taken advantage of numerous buyers in this community. What about their cut? I can just see redneck Dawn and homewrecker skank Ginger crying in the courtroom, thinking to themselves, how much of this is mine. Once the appeal takes the next 10 years and the exorbitant lawyer's fees and expenses are subtracted, not much will be left for any of them.
November 13, 2008 at 6:27 p.m. ( permalink | suggest removal )
turdblossom (anonymous) says...
I was trying to be nice, but amen NativeSC; maybe he got screwed on a verbal, but I hardly have any sorry feelings for a guy who makes a huge chunk of change taking advantage of poor homeowners in Charleston who he and his have mercilessly driven the prices up on and forced out of the market; especially on his beloved James Island. On his show he then tries to prove he is not only a super-succesful businessman, but someone who gives back to the community (as long as they are affiliated with James Island High school, buddy's of his, or Clemson university). Bob Geldof you are not!! Why don't you flip some houses on the East side of Charleston before you make life more comfortable for a bunch of affluent sorority girls that your daughter happens to be affiliated with, then you could claim you're some kind of humanitarian!!
November 13, 2008 at 10:22 p.m. ( permalink | suggest removal )
BigSouth (anonymous) says...
Just stumbled onto this article and comments. Are you really raggin' on the guy because he helped his alma maters??? You must not be a charitable crowd. Of course you're going to help causes that are close to your heart... friends, family, something in which you are interested or involved. The guy can't help EVERY hard luck case in Charleston. Man, you guys are tough!
Regarding his flips, I would buy one of his in a heartbeat. This guy does the job right and adds real value to his houses. His is a great story of someone working hard, working smart, and giving back where he can. I wish him great success!
February 21, 2009 at 1:58 p.m. ( permalink | suggest removal )
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