2017-08-09

Cumulus Seeks Higher Award in Baisden Back-Pay Verdict.


Michael Baisden

Story by Inside Radio

Cumulus Media thinks a Texas jury shortchanged its victory over former syndicated host Michael Baisden. So the company is asking a federal judge in Dallas to boost the size of its monetary victory over Baisden by nearly $900,000 above what the jury ordered the host to return to his former syndicator.

Cumulus sued Baisden in 2014 after it discovered that it mistakenly overpaid $1 million to Baisden between June 2012 and March 2013 when he was on its payroll. Baisden refused to give the money back, arguing his contract didn’t include any provisions for refunding overpayments. But a jury decided last month that the host should return $800,000 to the company.

In subsequent court filings Cumulus is now asking U.S. District Court Judge Sam Lindsay to increase the amount of money Baisden is to return to the company to $999,999.95. Cumulus tells the court “there was no evidence at trial that could justify this $200,000 reduction” in the difference between its overpayment and the amount the jury ordered Baisden to repay. “Defendants did not argue, nor produce any evidence, that could support a $200,000 reduction of the overpayment established by the evidence,” the company said in its brief.

And while the jury also awarded Cumulus punitive damages after they decided Baisden improperly transferred some of the money from his bankrupt company Baisden Enterprises to his personal account, it apparently wrote “$0” on court paperwork. Cumulus is asking the judge to instead order it receive $700,000 in punitive damages. That’s the amount of money Baisden fraudulently transferred to his own pocket.

“The Fifth Circuit has held that when a jury has ‘properly determined liability and there is no valid dispute as to the amount of damages,’ a court may increase the amount of damages award above the jury verdict,” the Cumulus brief argues.

But Baisden’s legal team has told Judge Lindsay that he should leave the verdict as is, rather than trying to “get into the minds of the jury” to determine which of the disputed items of evidence it relied on to award damages. And it argues that because the jury determined Cumulus didn’t suffer any actual damage from the transfer of some money from Baisden Enterprises to the host’s personal accounts—as evidenced by its award of zero dollars—the judge should do the same.

No decision has been made so far. Judge Lindsay has ordered a series of brief filing deadlines over the next week in which he’ll allow both sides to expand on their arguments. The court has also not yet decided how Baisden will be required to repay Cumulus. Despite his company’s bankruptcy, Cumulus said in court filings that, including the extra million dollars, Baisden received $8.25 million under his 2008 contract, the company claims.

Baisden returned to the air earlier this year with Superradio Networks for a new Cox Media Group urban AC “Kiss 104.1” WALR Atlanta-based syndicated show for the first time since he was abruptly “locked out” by Cumulus one day in 2013 when he arrived to do his afternoon drive program. His former contract with Cumulus also included a one-year non-compete agreement.

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