Former executive sues MLB’s digital companies

On Behalf of | Apr 6, 2018 | Contract Disputes

Kansas City Royals fans may be interested in learning about a lawsuit that has been filed by a former executive of the digital company that is owned by Major League Baseball. The lawsuit was filed against Baseball Advanced Media and BAMTech and alleges several causes of action, including breach of contract, fraud and unjust enrichment.

According to the lawsuit, the plaintiff worked for BAM for 17 years. In 2006, the executive received a 2 percent stake in BAM’s non-baseball business from its board of directors in order to keep him from leaving to work for another company. In 2016, Disney bought a 33 percent stake in the company for $1 billion. One year later, Disney announced that it was acquiring an additional 42 percent for $1.58 billion.

The plaintiff claims that he never received his equity percentage from the company or from the Disney transactions. He also states that he was suddenly fired without cause in December 2017. When he asked about his 2 percent equity stake, he was told that it didn’t exist and filed his lawsuit. The company responded that his lawsuit does not have merit.

When there is a dispute over the provisions of a contract, there may be several remedies. In cases that involve minor breaches, the parties may negotiate a settlement in which the breaching party pays damages to make the other party whole and then both parties continue with performing their contractual duties. When breaches are major, making it impossible for the parties to continue, the party that was damaged may seek a rescission of the contract and the payment of damages to cover all of the losses. An experienced commercial law attorney may help clients to resolve contract disputes so that they can be made whole.

Source: ABC News, “Ex-MLB executive sues, claiming breach of contract, fraud”, Mar. 29, 2018


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