Powell v. National Football League

711 F. Supp. 959, 1989 WL 38269
CourtDistrict Court, D. Minnesota
DecidedJanuary 6, 1989
DocketCiv. 4-87-917
StatusPublished
Cited by7 cases

This text of 711 F. Supp. 959 (Powell v. National Football League) 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
Powell v. National Football League, 711 F. Supp. 959, 1989 WL 38269 (mnd 1989).

Opinion

MEMORANDUM AND OPINION

DOTY, District Judge.

Plaintiffs in this action are the National Football League Players Association (“NFLPA”), several professional football players who play for various clubs in the National Football League (“NFL”), and, for purposes of injunctive relief requested against the Right of First Refusal/Compensation System (“RFR/CS”) of the 1982 Collective Bargaining Agreement (the “Agreement”) and related provisions of the NFL Player Contract, all veteran players who were on the active roster of an NFL club at the beginning of the 1987 football season and all veteran players who are at any time on the active roster of, or under contract to, an NFL club prior to the date of final judgement in this action. Defendants are the National Football League and each of its member clubs.

Plaintiffs commenced this action on October 15, 1987. Plaintiffs’ First Amended Class Action Complaint (“Plaintiffs’ Complaint”) alleges six counts of violations of its rights under the antitrust laws of the United States and two counts of requests for declaratory relief. Counts I and II allege antitrust violations due to implementation by the defendants of the RFR/CS and an agreement not to compete. Counts III and IV allege violations resulting from implementation of the College Player Draft, and Counts V and VI allege violations due to implementation of the NFL Player Contract. 1 Count VII requests the Court to declare that defendants are collaterally estopped from contesting the fact that they have a monopoly in the United States Major League Football Market and Count VIII requests the Court to declare that the “labor exemption” defense is inapplicable to this case. 2

*961 In the ensuing fourteen months since this action commenced, the Court has issued two Opinions that have resolved various controlling issues. The first, dated January 29,1988, determined that the labor exemption does immunize defendants from antitrust liability to a limited extent, thereby disposing of most of Count VIII of Plaintiffs’ Complaint. More specifically, the Court adopted a three part standard that the Eighth Circuit Court of Appeals held an employer/defendant must meet in order to be exempt from antitrust liability: the alleged restraint must (1) primarily affect only parties to the collective bargaining relationship, (2) concern a mandatory subject of bargaining, and (3) be the product of good-faith arms length bargaining. The Court applied this standard to the RFR/CS provision of the Agreement and the NFL Player Contract and determined that defendants were exempt from liability arising out of implementation of these alleged restraints up until expiration of the Agreement. The Court also determined that the labor exemption “survived” the Agreement to protect defendants until the parties reached impasse in bargaining over a specific provision of a new agreement. This meant that the allegations contained in Counts I, II, V and VI of plaintiffs’ Complaint were partially resolved.

The parties came before the Court again on June 17, 1988 on a motion to determine that the parties were at impasse, and on a motion to preliminarily enjoin defendants from further enforcing the RFR/CS. During the hearing, the Court declared that the parties were at impasse as of that day. In its second Opinion dated July 11, 1988, 690 F.Supp. 812, the Court then denied Plaintiffs’ motion for a preliminary injunction.

On October 28, 1988, the parties appeared before the Court a third time to argue four new motions. The motions argued were: (1) defendants’ motion for interlocutory appeal of the Court’s January 29, 1988 Opinion; (2) defendants motion for summary judgement on Plaintiffs’ antitrust allegations with respect to the College Draft (Counts III and IV of Plaintiffs’ Complaint) and NFL Player Contract (Counts V and VI); (3) defendants’ motion for summary judgement on all pre-June 17, 1988 damage claims; and (4) Plaintiffs’ motion for class certification. These matters are now before the Court for resolution and are the subject of this Memorandum and Opinion.

I. INTERLOCUTORY APPEAL

Defendants assert that the Court’s Opinion filed January 29, 1988 should be certified for appeal pursuant to 28 U.S.C. § 1292(b) and Fed.R.App.P. 5(a). Section 1292(b) requires:

[W]hen a district judge, in making in a civil action an order not otherwise ap-pealable under this section, shall be of the opinion that such an order involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation, he shall so state in writing in such order.

Federal Rule of Appellate Procedure 5(a) provides that “an order may be amended to include the prescribed statement at any time....”

The Court finds that its January 29, 1988 Memorandum and Opinion satisfies the requirements of 1292(b). The issue resolved in the January 29th Opinion involved the controlling legal question of whether, and to what extent, the labor exemption protects defendants from antitrust liability. See Powell v. National Football League, 678 F.Supp. 777, 782 (D.Minn.1988). There is a substantial ground for difference of opinion on this question, compare Bridgeman v. National Basketball Association, 675 F.Supp. 960, 965 (D.N.J.1987) (“the exemption for a particular practice survives only as long as the employer continues to impose that restriction unchanged, and reasonably believes that the practice or a close variant of it will be incorporated in the next Collective Bargaining Agreement.”) with Powell, 678 F.Supp. at 788 (“a labor exemption ... survives ... until the parties reach impasse ...”), and immediate appeal may materially advance the ultimate termination of this case should the Court of Appeals adopt a different labor exemption *962 standard than that applied by this Court. Therefore, the Court hereby amends its January 29, 1988 Memorandum and Opinion so as to certify it for appeal.

Section 1292(b) also permits the Court, in its discretion, to stay proceedings pending the interlocutory appeal. 28 U.S.C. § 1292(b). The Court declines to do so. The potential harm to plaintiffs in further delaying resolution of its antitrust claims outweighs any benefit that may be gained by awaiting the Court of Appeals’ decision. Accordingly, the proceedings in this action shall continue to go forward.

II. DEFENDANTS’ MOTIONS FOR SUMMARY JUDGMENT

Defendants’ three motions for summary judgment, in essence, request the Court to extend and enforce the labor exemption standards established in its January 29, 1988 Opinion and its June 17, 1988 finding of impasse.

A. College Player Draft

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Bluebook (online)
711 F. Supp. 959, 1989 WL 38269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-national-football-league-mnd-1989.