Eleventh Circuit Upholds Jury Verdict in Multimillion Dollar Land Development Dispute

On April 9, 2025, the U.S. Court of Appeals for the Eleventh Circuit upheld a jury’s verdict in favor of Hunton Andrews Kurth LLP client David Erickson and his land development companies. The appeals court’s decision sustained a jury’s verdict rejecting the plaintiff’s demand for approximately $49 million in a post-acquisition dispute and vindicated Mr. Erickson after more than three years of litigation in the Middle District of Georgia. 

David Erickson built Grayhawk Homes from the ground up, and it became one of the most successful homebuilding companies in the southeastern United States. In 2019, American Southern Homes Holdings (ASHH) acquired Grayhawk from Mr. Erickson, along with the right to buy his companies’ 1,600 lots, on which ASHH would build homes. The contracts contemplated that Mr. Erickson would develop and deliver the lots to ASHH over a seven-year period after the acquisition.

ASHH’s subsequent lawsuit centered on its allegation that Mr. Erickson failed to deliver certain lots. Following a seven-day jury trial in which ASHH sought approximately $49 million in claimed future lost profits, the jury found in favor of Mr. Erickson, concluding that ASHH had prevented his performance by not giving him the necessary schedule and guidance he needed to develop the lots and then threatening him with litigation if he did not submit to their demands.

“The jury found that, while ASHH sued Mr. Erickson for failing to deliver lots, it simultaneously made it impossible for him to do so,” said Robert Quackenboss, lead counsel for Erickson.

ASHH appealed the verdict, challenging the jury’s prevention finding and the district court’s denial of its motion for judgment as a matter of law. Appeals counsel Kevin Elliker argued the case before the Eleventh Circuit on March 26, 2025. Two weeks later, the panel unanimously affirmed the lower court’s decision, endorsing the jury’s conclusion that ASHH’s own conduct impeded Mr. Erickson’s ability to perform under the land purchase agreement.

The Hunton team that handled the case from pre-litigation through appeal included Robert Quackenboss, Mike Shebelskie, Kevin Elliker, Johnathan Schronce, Elbert Lin, Stephen Demm, Bob Dumbacher, Jason Beach, James Lockerby, and Elizabeth Brightwell.