N.Y. Appellate Court Upholds Contract Breach Decision in DirecTV/Nexstar Litigation

The New York County Supreme Court was right to side with DirecTV on its breach of contract claim against Nexstar regarding WHAG Hagerstown, Maryland, and its lost NBC affiliation. A state Supreme Court Appellate Division panel ruled Thursday that the New York County court's grant of summary judgment in favor of DirecTV on the breach of contract claim, and denial of Nexstar's branch of contact counterclaim, came from a straightforward interpretation of the parties' agreement. The appellate court also found that the county Supreme Court was correct when it decided that DirecTV's fraudulent inducement cause of action gave it a basis for recovering unlaunched station fees. DirecTV sued after Nexstar refused to refund $10.5 million in license fees the satellite TV operator paid for WHAG. DirecTV paid the fees without knowing the station had gone independent and no longer was affiliated with NBC. Nexstar didn't comment Friday. WHAG was rebranded WDVM.