Minnesota Made Hockey, Inc. v. Minnesota Hockey, Inc.

761 F. Supp. 2d 848, 2011 U.S. Dist. LEXIS 537, 2011 WL 14361
CourtDistrict Court, D. Minnesota
DecidedJanuary 4, 2011
DocketCivil 10-3884 (JRT/JJK)
StatusPublished
Cited by2 cases

This text of 761 F. Supp. 2d 848 (Minnesota Made Hockey, Inc. v. Minnesota Hockey, Inc.) 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
Minnesota Made Hockey, Inc. v. Minnesota Hockey, Inc., 761 F. Supp. 2d 848, 2011 U.S. Dist. LEXIS 537, 2011 WL 14361 (mnd 2011).

Opinion

MEMORANDUM OPINION AND ORDER DENYING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

JOHN R. TUNHEIM, District Judge.

In July 2010, defendant District 6 of Minnesota Hockey, Inc. adopted a rule barring its players from participating in another hockey league while playing for a District 6 team. Plaintiff Minnesota Made Hockey, Inc. offers league play opportunities to youth who play in District 6 and brought this motion for a preliminary injunction to enjoin District 6 and the other defendants from enforcing the rule. Although the Court finds that Minnesota Made Hockey has shown a likelihood of success on it anti-trust monopolization claims, the Court denies the preliminary injunction motion because the plaintiff has not shown irreparable harm, an essential requirement for injunctive relief.

BACKGROUND

All amateur sports in which the United States competes internationally are organized under a cascading system of regulation — the head of this system is the United States Olympic Committee (“USOC”). Each sport is governed by a National Governing Body (“NGB”). Congress authorized this structure when it passed the Amateur Sports Act (“ASA”) in 1978. 36 U.S.C. §§ 220501 et seq. Congress’ purpose for the structure and oversight of amateur sports as governed by the ASA included:

(1) to establish national goals for amateur athletic activities and encourage the attainment of those goals;
(2) to coordinate and develop amateur athletic activity in the United States, directly related to international amateur athletic competition, to foster productive working relationships among sports-related organizations;
(6) to promote and encourage physical fitness and public participation in amateur athletic activities;
(7) to assist organizations and persons concerned with sports in the development of amateur athletic programs for amateur athletes....

36 U.S.C. § 220503.

The NGB for each sport must be a nonprofit entity that demonstrates “autonom[y] in the governance of its sport.” 36 U.S.C. § 220522(a)(1), (5). Circuit courts have determined that the autonomy required in the statute allows an NGB “the monolithic control of an amateur sport by *855 the NGB for that sport....” Behagen v. Amateur Basketball Ass’n of U.S., 884 F.2d 524, 529 (10th Cir.1989); see also JES Props., Inc. v. USA Equestrian, Inc., 458 F.3d 1224, 1231 (11th Cir.2006), cert. denied, 549 U.S. 1205, 127 S.Ct. 1257, 167 L.Ed.2d 75 (2007); Eleven Line, Inc. v. N. Tex. State Soccer Ass’n, Inc., 213 F.3d 198, 204 (5th Cir.2000).

The NGB for hockey is USA Hockey. Amateur hockey in Minnesota is controlled by USA Hockey-affiliate Minnesota Hockey. Minnesota Hockey is further divided into thirteen geographic district associations. 1 District 6 controls the South and West metro areas of the Twin Cities, and is itself a cooperative group of thirteen independent youth hockey associations. Brad Hewitt is the director of District 6. Minnesota Hockey, District 6, District 6 Director Brad Hewitt, and the cooperative associations organized under District 6 are, collectively, “defendants” in this litigation.

Plaintiff Minnesota Made Hockey operates a for-profit hockey program in the same geographic area as District 6. Plaintiff offers a variety of youth hockey programming services including skate training, speed training, stick handling, passing and shooting, checking, offensive/defensive strategies, team training, and league and tournament team services. Plaintiff owns its own hockey rink in Edina and regularly rents ice time at a rink in Burnsville to conduct this business. These rinks are also in the geographic area of District 6. As a result, plaintiff and defendants provide similar services to the same population. Particularly at issue in this litigation are their league-play offerings.

In July of 2010, District 6 adopted a rule (“the outside league rule”):

A player registered with [District 6] may not register or play hockey with any other organization, association or team during the winter hockey season, including playoffs. If a player is found to be registered or playing with another team, the District Director will determine, in their sole discretion, what sanction shall be assessed which may include, without limitation, suspension for the remainder of the District 6 winter hockey season, including playoffs. This rule does not impact any hockey clinics or outside activities including but not limited to Boy Scouts, Girl Scouts, Religious events, birthday parties, etc. This rule strictly applies to league play.

(First McBain Aff. ¶ 33, Sept. 10, 2010, Docket No. 6.) Several of the for-profit hockey operations in District 6’s area sought clarification about whether players could participate in their programs without being sanctioned. For example, Joe Dziedzic, a former professional hockey player, operates a program that includes a winter 3-on-3 league that District 6 subsequently exempted from the outside league rule. 2

Several players and coaches have left plaintiffs programs citing the outside league rule. Many of the departing players had already made substantial deposits for plaintiffs programming. Plaintiff seeks a preliminary injunction to enjoin enforcement of the rule alleging tortious interference with prospective business relations; tortious interference with existing contractual relations; violations of Minn. Stat. §§ 325D.51 & D.52 (Minnesota’s antitrust statutes); and violations of 15 U.S.C. *856 §§ 1 & 2 (federal anti-trust statutes or the “Sherman Act”).

ANALYSIS

I. Standard of Review

In determining whether a party is entitled to preliminary injunctive relief, the Court considers “(1) the threat of irreparable harm to the movant; (2) the state of the balance between this harm and the injury that granting the injunction will inflict on other parties litigant; (3) the probability that [the] movant will succeed on the merits; and (4) the public interest.” Dataphase Sys., Inc. v. CL Sys., Inc., 640 F.2d 109, 113 (8th Cir.1981). “The question is whether the balance of equities so favors the movant that justice requires the court to intervene to preserve the status quo until the merits are determined.” Id.

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Bluebook (online)
761 F. Supp. 2d 848, 2011 U.S. Dist. LEXIS 537, 2011 WL 14361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minnesota-made-hockey-inc-v-minnesota-hockey-inc-mnd-2011.