The Georgia Court of Appeals has upheld a $281 million judgment that Turner Broadcasting System must pay to a Texas car dealer who wanted to buy the Hawks and Thrashers from the company in 2003.
The ruling, issued today, said the lower court was correct in awarding the amount to David McDavid, a businessman who accused Atlanta-based Turner of cheating him out of buying the professional basketball and hockey teams as well as the operating rights to Philips Arena.
"We are pleased but not surprised," Lamar "Mickey" Mixson, an attorney representing McDavid, told the AJC. "The jury affirmed that in Georgia, a man's word is his bond."
Turner has the right to petition the Georgia Supreme Court to hear the case, which a company spokeswoman said it would do.
"We are disappointed with the Court of Appeals' decision to uphold an erroneous and excessive jury verdict. Because of its importance to our Company and the business community, we will ask the Georgia Supreme Court to review the decision," said Misty Skedgell, a Turner spokeswoman.
Because of the appeal, Turner has not yet paid McDavid. It is unclear the amount of interest that may be factored into that payment, but the media giant may be on the hook for more than $300 million at this point.
The outcome of Friday's decision plays no role in who owns the teams and Arena rights. They are owned by an eight-man ownership group known as the Atlanta Spirit.
McDavid signed a letter of intent to buy the professional teams and arena operating rights from Turner in 2003.
The letter, granting exclusive negotiating rights, expired, but the parties continued to talk. Turner announced in the fall of that year it planned to sell the teams to the Spirit.
McDavid then filed a $450-million breach-of-contract lawsuit against the company.
Turner appealed the jury's decision, saying, among other things, that there was no evidence that the parties agreed to all terms of the sale.
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