Eller v. National Football League Players Ass'n

872 F. Supp. 2d 823, 193 L.R.R.M. (BNA) 3079, 2012 U.S. Dist. LEXIS 74088, 2012 WL 1933746
CourtDistrict Court, D. Minnesota
DecidedMay 29, 2012
DocketCivil No. 11-2623 (SRN/JJG)
StatusPublished
Cited by2 cases

This text of 872 F. Supp. 2d 823 (Eller v. National Football League Players Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eller v. National Football League Players Ass'n, 872 F. Supp. 2d 823, 193 L.R.R.M. (BNA) 3079, 2012 U.S. Dist. LEXIS 74088, 2012 WL 1933746 (mnd 2012).

Opinion

ORDER

SUSAN RICHARD NELSON, District Judge.

This matter is before the Court in this consolidated action on the motions to dismiss brought by Defendants National Football League Players Association (“NFLPA”), its Executive Director, DeMaurice Smith, and two individual football players, Tom Brady and Mike Vrabel (Doc. Nos. 23 and 41). For the reasons stated below, this Court grants the motions.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. The Brady and Eller I Actions

In May 2008, the National Football League announced it would opt out of the then-existing CBA with the NFLPA effective March 11, 2011, two years before the scheduled expiration of its term. In Feb[826]*826ruary 2011, the League then filed an unfair labor practice charge with the NLRB, alleging that the NFLPA’s threat to decertify itself as a union constituted an unfair labor practice. The parties attempted to resolve their dispute in mediation before George Cohen of the Federal Mediation and Conciliation Service. Plaintiffs allege that the League’s last proposal to the players included benefits for the retired players worth $1.5 billion over the ten-year span of a new CBA. (Doc. No. 1, ¶ 87.)1

On March 11, 2011, the NFLPA renounced its status as the collective bargaining agent for the players and took related actions to decertify itself as a union. (Id. ¶ 82.) In response, the League instituted a “lockout” of the players. That same day, Brady and several other active or prospective players (the “Brady plaintiffs”) sued the League and its thirty-two constituent teams, alleging that the “lockout” violated Section 1 of the Sherman Antitrust Act, 15 U.S.C. § 1 (“the Brady action”). (Id. ¶ 92.) They “did not seek to represent a class of former NFL players.” (Id.)

On March 28, 2001, several retired professional football players including Plaintiff Carl Eller (the “Eller I plaintiffs”) filed a complaint on behalf of a putative class of retired players against the same defendants named by the active players (“the Eller I action”). (Doc. No. 1, ¶ 94.) And also like the active players, the Eller I plaintiffs alleged that the League violated Section 1 of the Sherman Act. (No. ll-CV-748, Doc. No. 1.)2 This Court consolidated the two actions. (No. ll-CV-748, Doc. No. 49.) “Counsel for the Brady Defendants repeatedly disclaimed any intent to represent the class of retired players defined in the Eller I complaint.” (Doc. No. 1, ¶ 95.)3

On April 11, 2011, this Court ordered mediation of both of the disputes before Chief Magistrate Judge Arthur Boylan. (No. ll-CV-639, Doc. No. 56.) The Order recognized that the mediation sessions could be either “joint or separate.” (Id. at 2. ) The Order also provided that “all confidential dispute resolution communications shall remain confidential,” and that “the fact of participation in this Court-ordered mediation, and any communications conveyed between the parties in this process, shall not be admitted or used against any party in any other proceeding or forum, for any purpose.” (Id. at 3.)

At mediation proceedings in April and May of 2011, “counsel for the Eller I plaintiffs alone were acknowledged to represent the interests of retired NFL players.” (Doc. No. 1, ¶ 97.) Counsel for the Brady plaintiffs proposed to counsel for the Eller I plaintiffs “ ‘that the Brady plaintiffs cover the economic system issues’ ” such as a revenue split between the League and the players, while the Eller I plaintiffs “ ‘would make the proposal on the retired player issues.’ ” (Id. ¶ 98.) Counsel for the Eller I plaintiffs met with Dennis Curran of the [827]*827NFL and made a proposal for increased retired player benefits “that went significantly above the level proposed by the NFL at the mediation” with George Cohen in February 2011 before the NFLPA decertified. (Id. ¶ 100.) The Eller I plaintiffs made various demands such as medical monitoring of head injuries. (Id. ¶ 101 & Ex. A.) The League “made no substantive counteroffer.” (Id. ¶ 102.) Counsel for the Eller I plaintiffs again reiterated that they alone represented the retired players and would negotiate through an organization separate from the NFLPA. (Id. ¶¶ 103-04.)

After May 16, 2011, the League held several negotiations with “the active player Brady Defendants,” but Plaintiffs allege that “[njeither the Eller I plaintiffs nor their counsel were allowed to attend these meetings.” (Id. ¶ 107.) In fact, Plaintiffs allege that “it became clear” that those parties “were negotiating issues relating to retired NFL players.” (Id. ¶ 108.) “No one among the Eller I plaintiffs authorized the NFLPA or the Brady Defendants to assume that role.” (Id. ¶ 109.) Moreover, they allege that the Brady Defendants refused the request of the Eller I plaintiffs to participate in their negotiations. (Id. ¶ 110.)

In July 2011, counsel for the Eller I plaintiffs were informed that the Brady Defendants had decided to reconstitute themselves as a union. (Id. ¶ 112.) They were also informed that the League would not negotiate retiree issues directly with the Eller I plaintiffs and that the League’s resolution of the dispute with the Brady Defendants would include increased benefits for the retired players. (Id. ¶¶ 114-16.) “On July 19, 2011, the League had calculated that the total value of these improvements over the duration of a ten-year CBA was estimated to be $900 million — far less than the $1.5 billion on the table at the mediation overseen by Cohen, [and] far less than either of the Eller I plaintiffs’ proposals.” (Id. ¶ 117.)

The Eller I plaintiffs understood these communications to mean “that an agreement had already been reached among the NFL, the NFLPA, the Brady Defendants and Smith on the terms of any resolution as to retired NFL players.” (Id. ¶ 118.) The Complaint also alleges that “the plan that had been agreed to was that formal assent to these terms would occur only after the NFLPA recertified itself as a union.” (Id.) On July 21, 2011, it was reported that the League “had approved a ‘long-term agreement’ with NFL players that included the terms affecting retirees.” (Id. ¶ 120.)

On July 25, 2011, the NFLPA’s player representatives voted to approve the ten-year deal. (Id. ¶ 121.) On August 4, 2011, it was reported that the NFLPA had re-certified itself as a union. (Id. ¶ 122.) That same day, the League and the NFLPA signed the 2011 CBA, which “released any claims that could be asserted in the SSA, the suit that led up to it, or the Brady action,” and also stated that “ ‘[f]or purposes of clarity, this release does not cover any claims of any retired player.’ ” (Id. ¶ 123.) The League and the Brady plaintiffs then stipulated to a dismissal with prejudice of the Brady action.

In the interim, in July 2011, the Eller I

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872 F. Supp. 2d 823, 193 L.R.R.M. (BNA) 3079, 2012 U.S. Dist. LEXIS 74088, 2012 WL 1933746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eller-v-national-football-league-players-assn-mnd-2012.