Major League Baseball v. Butterworth

181 F. Supp. 2d 1316, 2001 U.S. Dist. LEXIS 22021, 2001 WL 1690202
CourtDistrict Court, N.D. Florida
DecidedDecember 27, 2001
Docket4:01cv511-RH
StatusPublished
Cited by7 cases

This text of 181 F. Supp. 2d 1316 (Major League Baseball v. Butterworth) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Major League Baseball v. Butterworth, 181 F. Supp. 2d 1316, 2001 U.S. Dist. LEXIS 22021, 2001 WL 1690202 (N.D. Fla. 2001).

Opinion

MEMORANDUM OPINION

HINKLE, District Judge.

Major League Baseball has announced its intention to contract from 30 clubs to 28 for the 2002 season. The issue in this action is whether the federal and state antitrust laws apply to the proposed contraction. The defendant Attorney General of the State of Florida asserts that the antitrust laws do apply. Pursuant to his statutory authority to investigate possible violations of the federal and state antitrust laws, the Attorney General has issued civil investigative demands to plaintiffs Major League Baseball, its Commissioner, and the two Florida major league baseball clubs. Plaintiffs seek declaratory and in-junctive relief against the Attorney General on the grounds that the “business of baseball,” including the decision whether to contract, is exempt from the federal and state antitrust laws. Plaintiffs are correct.

By separate order, a preliminary injunction has been entered. This opinion sets forth the court’s findings of fact and conclusions of law in support of the preliminary injunction and establishes a procedure for further consideration of this case.

I

Background

Baseball is an American game that has occupied a unique position in American society. Its history traces to the 19th century and has been described with some wistfulness in the normally pedestrian *1319 pages of the United States Reports. See Flood v. Kuhn, 407 U.S. 258, 260-64, 92 S.Ct. 2099, 32 L.Ed.2d 728 (1972). But whatever its history, big league baseball is also big business. Some would say it faces big issues.

Major League Baseball is an unincorporated association of the 30 major league baseball clubs. It is governed by a Constitution adopted in January 2000. The Constitution authorizes contraction on the affirmative vote of three-fourths of the clubs.

On November 6, 2001, the clubs voted 28 to 2 in favor of contracting from 30 clubs to 28 for the 2002 season. The two Florida clubs voted in favor of contraction. On December 13, 2001, Major League Baseball announced that negotiations with the Players Association, an organization representing major league baseball players, had faded and that Major League Baseball was proceeding with the planned contraction. As this opinion is written, it appears that contraction is imminent.

On November 13, 2001, the Attorney General of the State of Florida issued sweeping civil investigative demands (“CIDs”) to the plaintiffs in this action: Major League Baseball, Commissioner Allan H. Selig in his official and individual capacities, and the two Florida major league baseball clubs, the Tampa Bay Devil Rays, Ltd., and the Florida Marlins Baseball Club, L.L.C. Each CID said it was “issued pursuant to the Florida Antitrust Act of 1980, Section 542.28, Florida Statutes,” identifying no other authority for its issuance. Each CID demanded that the recipient answer broad interrogatories and produce voluminous documents by December 13, 2001. The Attorney General refused to extend the deadline.

On December 10, 2001, plaintiffs filed this action, contending that, as a matter of federal law, the “business of baseball,” a concept that plaintiffs assert includes the proposed contraction from 30 teams to 28, is exempt from the federal and state antitrust laws. Plaintiffs’ complaint demanded declaratory and injunctive relief.

Plaintiffs filed motions for a temporary restraining order and preliminary injunction. On December 11, 2001, a hearing was held on plaintiffs’ motion for a temporary restraining order. All parties were represented by counsel and presented argument. All parties agreed that the entire action appeared to present only issues of law. I denied the motion for temporary restraining order on the ground that plaintiffs would suffer no irreparable harm pri- or to a hearing on plaintiffs’ motion for preliminary injunction. I scheduled the motion for preliminary injunction for hearing on December 18, 2001, a date approved by both sides, and announced my intention to consolidate the trial on the merits with the preliminary injunction hearing, as authorized by Federal Rule of Civil Procedure 65(a)(2). A written order confirmed the proposed consolidation and established a procedure for each side to give advance notice of its positions. Each side submitted a comprehensive trial brief in advance of the scheduled hearing.

On December 18, 2001, the preliminary injunction hearing and consolidated trial on the merits convened, with both sides announcing ready. Both sides presented testimony and exhibits, as well as argument. The Attorney General asserted during the testimony of plaintiffs’ first witness that the Attorney General intended to seek discovery on issues being addressed by the witness (a very general summary of the effects contraction would have on such matters as scheduling) and thus intended to oppose full consolidation of the merits with the preliminary injunction hearing. At the conclusion of the hearing, I announced on the record my intention to enter a preliminary injunction, outlined the *1320 reasons for that decision, and indicated that a written preliminary injunction and more comprehensive written explanation of the decision would be issued. I also announced that the Attorney General would be given the opportunity to review the written order and to address within a reasonable time thereafter whether he believed discovery and further proceedings should be commenced or instead agreed that the merits should be treated as consolidated with the preliminary injunction hearing in all respects and a final judgment entered. The Attorney General agreed to that procedure and agreed that plaintiffs should not be required to provide security as a condition of the preliminary injunction prior to the Attorney General’s election whether to seek further proceedings in this court. A preliminary injunction was entered on December 21, 2001, in the expectation that this more comprehensive opinion would be issued.

These matters have been addressed with considerable dispatch because they are matters of some urgency and because, with commendable professionalism, both sides have cooperated in the prompt submission of the significant procedural and substantive issues presented by this case.

II

Jurisdiction

Plaintiffs assert that a state officer — the Attorney General of the State of Florida— has taken action, and has threatened further action, in violation of federal law. Plaintiffs seek relief under 42 U.S.C. § 1983 and the federal Declaratory Judgment Act, 28 U.S.C. §§ 2201-02. The action arises under federal law and is within this court’s jurisdiction under 28 U.S.C. § 1331.

Because plaintiffs seek only prospective relief and name as the defendant only a state officer, not the state in its own name, the Eleventh Amendment does not bar the action, under the doctrine of

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Bluebook (online)
181 F. Supp. 2d 1316, 2001 U.S. Dist. LEXIS 22021, 2001 WL 1690202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/major-league-baseball-v-butterworth-flnd-2001.