Hicks v. PGA Tour, Inc.

165 F. Supp. 3d 898, 2016 U.S. Dist. LEXIS 31597, 2016 WL 928728
CourtDistrict Court, N.D. California
DecidedFebruary 9, 2016
DocketCase No. 15-cv-00489-VC
StatusPublished
Cited by3 cases

This text of 165 F. Supp. 3d 898 (Hicks v. PGA Tour, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hicks v. PGA Tour, Inc., 165 F. Supp. 3d 898, 2016 U.S. Dist. LEXIS 31597, 2016 WL 928728 (N.D. Cal. 2016).

Opinion

ORDER GRANTING MOTION TO DISMISS, DENYING MOTION TO STRIKE

Re: Dkt. Nos. 79, 80, 82

VINCE CHHABRIA, United States District Judge

This case is about the “bibs” caddies wear during golf tournaments sponsored by the PGA Tour. These bibs display the name of the golf tournament, the name of the golfer for whom the caddie works (on the back), and often corporate logos. The bibs generally look like this:

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SAC ¶ 1.

Recently there has been great strife between the caddies and the Tour, with caddies complaining that their working conditions are poor and that the Tour does not treat them with common human decency. To use one high-profile example, at a tournament in February 2015, play was suspended because of a thunderstorm with high winds. Players and other people were permitted to go indoors, while caddies were left to seek refuge under an open metal shed or in their vehicles. This prompted ESPN analyst Scott Van Pelt to opine that the PGA Tour “treats its caddies like outside dogs.”1

Caddies are now fighting back. As part of this fight, 168 caddies have sued the PGA Tour in federal court. The lawsuit is a proposed class action, in which the cad[903]*903dies seek to represent themselves and all other similarly-situated caddies. They contend that the Tour may not require them to wear the bibs during tournaments, or at least that the Tour must compensate them for wearing the bibs because of the publicity they provide for the Tour and its sponsors. Specifically, the caddies assert that the bib requirement violates the contracts they signed with the Tour, violates their “right of publicity,” and violates the federal antitrust and trademark laws.

But caddies have been required to wear the bibs for decades. So caddies know, when they enter the profession, that wearing a bib during tournaments is part of the job. In other words, the bib is the primary part of a caddie’s uniform. And the contracts the caddies signed with the Tour require them to wear the uniforms prescribed by the Tour. For that reason, there is no merit to the caddies’ contention that the contracts somehow prevent the Tour from requiring them to wear bibs. Nor does the bib requirement implicate federal antitrust or trademark law. The complaint is therefore dismissed. Dismissal is with prejudice, because the caddies have been unable to identify a way (and the Court is unable to think of a way) they could cure the defects in their complaint, despite multiple rounds of briefing and a lengthy hearing on the Tour’s most recent motion to- dismiss. Northstar Fin. Advisors, Inc. v. Schwab Invs., 781 F.Supp.2d 926, 931 (N.D.Cal.2011).

I. CONTRACTUAL CLAIMS

A. BREACH OF CONTRACT

For each pro golf tournament in which caddies participate, they must sign a form contract with the Tour.2 The contract contains language imposing dress and uniform requirements on the caddies for each tournament. But the language about dress and uniform requirements does not explicitly mention bibs. The caddies seize on this silence to argue that the contract does not allow the Tour to make them wear bibs. And they argue that the bib requirement interferes with their right to make money off endorsements, because the bib covers space on their shirts that could otherwise display endorsements. The question, therefore, is whether the general contract language imposing dress and uniform requirements on the caddies at each tournament can be reasonably understood as precluding the Tour from requiring the caddies to wear bibs at those tournaments.

As a preliminary matter, it bears noting that the caddies signed these form contracts in the forty-two different states where the Tour’s tournaments are held. Although one might assume that interpretation of each contract should be governed by the law of the state in which it was signed, the parties agree that California law governs the caddies’ breach of contract claim. “[Pjarties may, in absence of strong contrary public policy, choose which forum’s law will govern an action,” Dimi-[904]*904dowich v. Bell & Howell, 803 F.2d 1473, 1477 n. 1 (9th Cir.1986) (citing Lauritzen v. Larsen, 345 U.S. 571, 588-89, 73 S.Ct. 921, 97 L.Ed. 1254 (1953)), including by agreement during litigation, see id. at 1477; see also Isofoton, S.A. v. Giremberk, No. CV-04-0798-PHX-ROS, 2006 WL 1516026, at *2 (D.Ariz. May 30, 2006). Moreover, the parties both assert that there is no material difference between the laws of the forty-two states on this issue. The Court will therefore apply California law.

Under California law, the general rule is that if the relevant contractual language is ambiguous, such that either side’s interpretation is potentially reasonable, the dispute must be resolved by a jury. See Requa v. Regents of Univ. of Cal., 213 Cal.App.4th 213, 152 Cal.Rptr.3d 440, 449 (Ct.App.2012); Aragon-Haas v. Family Sec. Ins. Servs., 231 Cal.App.3d 232, 282 Cal.Rptr. 233, 238 (Ct.App.1991); Marina Tenants Ass’n v. Deauville Marina Dev. Co., 181 Cal.App.3d 122, 226 Cal.Rptr. 321, 324 (Ct.App.1986). But even if disputed language might appear ambiguous when read in isolation, where the context reveals that the language is suscepti ble to only one reasonable interpretation, the ambiguity can be conclusively resolved in favor of that ipterpretation as a matter of law. See Kashmiri v. Regents of Univ. of Cal., 156 Cal.App.4th 809, 67 Cal. Rptr.3d 635, 660 (Ct.App.2007); Boeing Co. v. Cont’l Cas., 157 Cal.App.4th 1258, 69 Cal.Rptr.3d 322, 326-27 (Ct.App.2007). This is true even on a motion to dismiss: if the allegations in the complaint, viewed with other materials properly considered at the pleading stage, conclusively show that only the defendant’s interpretation of the disputed contractual language is reasonable, the complaint must be dismissed. See Skilstaf Inc. v. CVS Caremark Corp., 669 F.3d 1005, 1017 (9th Cir.2012); see also Boeing, 69 Cal.Rptr.3d at 326; Lee v. City of L.A., 250 F.3d 668, 688 (9th Cir. 2001).

As mentioned, the question here is whether the language of the form contract imposing dress and uniform requirements on caddies can be reasonably interpreted as not authorizing the Tour to require them to wear bibs. The pertinent paragraph states:

Caddies shall wear uniforms and identification badges as prescribed by the host tournament and PGA TOUR. All caddies are required to wear solid-colored, Khaki-style long pants, which touch the top of the shoe, or solid-colored, knee-length, tailored shorts or skorts and a collared shirt while on club property. Tshirts, jeans, culottes, skirts, capris, cut-off shorts and cargo-style shorts are not permitted. Acceptable colors shall be determined at the discretion of the Tournament Director.

Dkt. No. 80 Ex. F. Although the caddie registration agreement has changed over time, the first sentence of this provision has remained identical since at least 2010, and is apparently used at all events in all three of the Tour’s pro golf tours. Dkt. No. 80 Exs. A-R. The remaining language has remained almost identical as well. See id.

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Bluebook (online)
165 F. Supp. 3d 898, 2016 U.S. Dist. LEXIS 31597, 2016 WL 928728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hicks-v-pga-tour-inc-cand-2016.