Los Angeles Memorial Coliseum Commission v. National Football League

89 F.R.D. 497, 1981 U.S. Dist. LEXIS 13126
District Court, C.D. California·Decided March 17, 1981·No. Civ. No. 78-3523-HP·Published·Cited by 65 cases

Opinion

MEMORANDUM AND ORDER DENYING MOTION FOR CHANGE OF VENUE

PREGERSON, Circuit Judge, Sitting by Designation.

This matter is before the court on the National Football League’s motion for change of venue. Having considered the pleadings, the affidavits, the memoranda of law, and the oral argument of counsel, the court has concluded that the motion for change of venue should be denied.

The NFL’s motion, based on 28 U.S.C. § 1404(a), seeks to transfer the case out of the Central District of California. The NFL argues that its due process rights to a fair trial would be denied by holding a trial in Los Angeles, where, the NFL argues, a jury would likely be predisposed to favor the transfer of a second NFL franchise to the Los Angeles Coliseum. The NFL further claims that a transfer is necessary to avoid the risk of a verdict based on juror prejudice, financial interest, and the influence of pretrial publicity. The defendant Los Angeles Rams join in the NFL’s motion. Before evaluating the factors to be [498] considered in ruling on a motion under section 1404(a), a brief review of the history of this case and some of the issues involved may be in order.

I. BACKGROUND

The Los Angeles Coliseum Commission originally filed its complaint against the NFL on September 13, 1978. The complaint sought to have sections 3.1 and 4.3 of the NFL Constitution and Bylaws, which required a unanimous vote of all NFL teams to permit a transfer of a team’s home location, declared invalid as a restraint of trade violative of sections 1 and 2 of the . Sherman Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2. In an order filed February 28, 1979, this court dismissed the complaint with leave to amend on the ground that plaintiff had not adequately alleged standing to bring the action. Los Angeles Memorial Coliseum Commission v. N. F. L. (“Coliseum I’), 468 F.Supp. 154 (C.D.Cal.1979). Plaintiff filed a second amended complaint for injunctive relief on March 5, 1979.

The next major event in the case occurred on January 18, 1980, when plaintiff filed a motion for a preliminary injunction against the NFL. The court was told that the Oakland Raiders Football Club had agreed to move its home location to the L.A. Coliseum but that an injunction was necessary to prevent the NFL from blocking the move by requiring, under its newly amended transfer rule, the approval of three-quarters of the NFL members. After a hearing held on February 4, 1980, and the filing of several supplemental briefs, this court granted a preliminary injunction against the NFL in an order filed on February 21, 1980. Los Angeles Memorial Coliseum Commission v. N. F. L. (“Coliseum II"), 484 F.Supp. 1274 (C.D.Cal.1980). The Ninth Circuit subsequently stayed the order pending appeal, and later reversed, in an opinion filed December 12, 1980, for lack of a showing of irreparable injury. Los Angeles Memorial Coliseum Commission v. N. F. L., 634 F.2d 1197 (9th Cir. 1980).

In the meantime, the L.A. Coliseum Commission filed a third amended and supplemental complaint adding a damage claim to their claim for injunctive relief. Shortly thereafter, the defendant Oakland Raiders filed a cross claim against the NFL for damages and an injunction. Although the L.A. Coliseum’s jury trial demand was included in its third supplemental complaint, filed on March 7, 1980, the Coliseum subsequently indicated a desire to try the case without a jury.1 The NFL, however, has demanded its right to a trial by jury.

Trial was originally scheduled for November 18, 1980.2 The NFL’s motion for change of venue was filed on September 8, 1980. The motion was taken under submission after oral argument on September 30th. Intensive settlement discussions were held on numerous occasions from October 1980 until February 4, 1981. The Oakland-Alameda County Coliseum was permitted to intervene in the suit by an order filed on January 16, 1981. Supplemental memoranda on the motion for change of venue were received on January 14, January 23, January 29, February 4, February 20, February 24, March 6, and March 12, 1981. Discovery having been substantially completed, several motions for partial summary judgment were filed. Remaining at issue are the following basic claims: (1) the claims of the L.A. Coliseum and the Oakland Raiders that the NFL’s three-quarters vote requirement for approval of transfers is both a restraint on trade and an attempt to monopolize, in violation of sections 1 & 2 of the Sherman Act; (2) the L.A. Coliseum’s claim for tortious interference with contractual advantage and business relations; and (3) the Oakland Raiders’ claim that the NFL’s conduct in blocking the Raiders’ move to Los [499] Angeles is a breach of the duty of fair dealing. The NFL has responded with the following basic defenses: (1) since the NFL acts as a “single economic éntity” in deciding where NFL football will be marketed, the “multiple actors” requirement for a section 1 violation has not been met; (2) blocking the move of the Oakland Raiders to Los Angeles has no substantial effect on competition; (3) the NFL’s rule on transfers is valid under the rule of reason and was reasonably applied; (4) the proposed contract between the L.A. Coliseum and the Oakland Raiders would not have received the necessary approval of the appropriate governmental bodies; and (5) the Oakland Raiders Club is precluded from recovering any damages, based on the invalidity of the transfer rule, because of the club’s adoption of the bylaws containing the rule and its failure to exhaust intraleague remedies. Trial is scheduled to begin on March 23, 1981.

II. FACTORS TO BE CONSIDERED UNDER SECTION 1404(a)

The statute on which the motion for transfer is based, 28 U.S.C. § 1404(a), reads as follows:

For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.

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Los Angeles Memorial Coliseum Commission v. National Football League, 89 F.R.D. 497, 1981 U.S. Dist. LEXIS 13126 (C.D. Cal. 1981).

89 F.R.D. 497 (Los Angeles Memorial Coliseum Commission v. National Football League) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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