Turner Broadcasting System, Inc. v. McDavid
Georgia Court of Appeals
693 S.E.2d 873 (2010)
After lengthy negotiations, Turner Broadcasting (defendant) reached an oral agreement with McDavid (plaintiff) to sell the Atlanta Hawks, Atlanta Thrashers, and Philips Arena operating rights, repeatedly assuring McDavid the deal was done even through a later restructuring, but on the very day the parties finalized remaining written terms and agreed to meet for signing, Turner instead signed a competing deal with Atlanta Spirit and informed McDavid days later that the deal was off; McDavid sued for breach, presenting expert testimony valuing the assets between $647 million and $656 million, and the jury awarded him $281 million. Turner appealed.
Whether damages for breaching a contract to sell an asset are usually determined by the difference between the contract price and the fair market value of the assets at the time the contract was breached.