Right Field Rooftops, LLC v. Chicago Cubs Baseball Club, LLC

136 F. Supp. 3d 911, 2015 U.S. Dist. LEXIS 133190, 2015 WL 5731736
CourtDistrict Court, N.D. Illinois
DecidedSeptember 30, 2015
DocketNo. 15 C 551
StatusPublished
Cited by6 cases

This text of 136 F. Supp. 3d 911 (Right Field Rooftops, LLC v. Chicago Cubs Baseball Club, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Right Field Rooftops, LLC v. Chicago Cubs Baseball Club, LLC, 136 F. Supp. 3d 911, 2015 U.S. Dist. LEXIS 133190, 2015 WL 5731736 (N.D. Ill. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

Virginia M. Kendall, United States District Court Judge, Northern District of Illinois

Due to the extensive history that has already occurred in this case — a hearing on a motion for temporary restraining order and voluminous briefing with corresponding evidentiary exhibits leading up to a hearing on- a motion for preliminary injunction — it may seem odd that the Court returns to the original complaint to determine whether it states a claim. Yet, that is the posture this matter takes at this point in the litigation in spite of the Court’s rulings in February and April of this year. Those rulings took into account the likelihood of success oh the merits', but now we must return to the initial stage to determine whether the complaint states a claim in order to determine whether the case should proceed to full discovery and a decision on the merits. Plaintiffs, Right Field Rooftops, LLC; Skybox on Sheffield; Right Field Properties, LLC; Lake-view Baseball Club; and Rooftop Acquisition, LLC (the “Rooftops”) initiated this action against Defendants, Chicago. Baseball -Holdings, LLC; Chicago Cubs Baseball Club, LLC; Wrigley Field Holdings, LLC; and Thomas Ricketts (the “Cubs”) alleging that the Cubs engaged in anti-competitive behavior and breached a contract wherein the parties agreed the Rooftops would provide the Cubs 17% of their profits in exchange for the Cubs promise to not block the view of Wrigley- Field from- the Rooftops (the “License Agreement”). The Rooftops’ nine-count, complaint can be grouped as claims seeking relief for: (1) attempted monopolization (Counts I and II); (2) false and misleading commercial representations, defamation, false light, and breach of the non-dispar[915]*915agement clause (Counts III — VII); and (3) breach of contract (Count VIII and IX). The Cubs filed a motion to dismiss all counts pursuant to. Federal Rule of Civil Procedure 12(b)(6). For the reasons set forth below, the Court grants the Cubs’ Motion to Dismiss all counts with prejudice.

BACKGROUND

A full description of the facts giving rise to the complaint is set forth in the Court’s preliminary-injunction opinion. See Right Field Rooftops, LLC v. Chicago Baseball Holdings, LLC, 87 F.Supp.3d 874, 878-83 (N.D.Ill.2015). The Court assumes familiarity with those facts. Briefly, this dispute began years ago from the embattled relationship between the Rooftops and the Cubs, who continually clash over the Rooftops’ patrons viewing live Cubs games.. It specifically pertains to the Cubs’ construction of a video board that blocks the view of Wrigley Field from the Rooftops, Cubs’ acquisition of rooftop properties,- and attempts by the Cubs to set minimum ticket prices for the rooftops. The Rooftops’ defamation claims derive from a statement made by Ricketts at the Cubs convention about the nature of the relationship between the Rooftops and the Cubs.

The Rooftops filed their' complaint on January 20, 2015, and three weeks later sought a temporary restraining order (“TRO”) and preliminary injunction enjoining the Cubs from constructing a video board. On February 18, 2015, the Court held a TRO hearing and denied the Rooftops’ motion for TRO the following day. Then on April 2, 2015, the Court, denied the Rooftops motions for a preliminary injunction because: (1) the exemption of Major League Baseball teams forecloses antitrust claims; (2) live Cubs games áre not a relevant market; (3) plans to construct the video board did not constitute anticipatory repudiation; (4) the Rooftops failed to. establish that they would- suffer irreparable harm and had no adequate remedy at law besides injunctive relief; and (5) a balance of hardships weighed in favor of denying injunctive relief.'* The Court now grants the Cubs’ motion to dismiss all counts with prejudice.

LEGAL STANDARD

A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) challenges the viability of a complaint by arguing that it fails to state a claim upon which relief may be granted.- Fed. R. Civ. P. 12(b)(6); Doe v. Village of Arlington Heights, 782 F.3d 911, 914 (7th Cir.2015). To survive a motion to dismiss under Rule 12(b)(6), the complaint must -provide enough factual information to “state a claim to relief that is plausible on' its face” and “raise a right to relief above the speculative level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). All well-pled facts are taken as true and viewed in the light most favorable to the plaintiff, Hatmaker v. Mem’l Med. Ctr., 619 F.3d 741, 743 (7th Cir.2010), but “[tjhreadbare recitals of the elements of a cause of action,- supported by mere conclusory statements, do- not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

DISCUSSION

I. Cubs’ Motion to Dismiss Counts I and II

The Ciibs move to dismiss Counts I and II that allege attempted monopolization by the Cubs in violation of the Sherman Act. They argue first that the Major League Baseball exemption from antitrust laws applies to the Cubs, and in the alternative, that the. Rooftops failed to state an antitrust claim because there is no plausible [916]*916relevant market and the Cubs cannot monopolize distribution of their own product.

As this Court has previously held, the Supreme Court in a series of decisions exempted Major League Baseball from the reach of antitrust laws. See Fed. Baseball Club of Baltimore v. Nat’l League of Prof'l Baseball Clubs, 259 U.S. 200, 208, 42 S.Ct. 465, 66 L.Ed. 898 (1922) (the Sherman Act had no application to the “business [of] giving exhibitions of base ball”); Toolson v. New York Yankees, 346 U.S. 356, 357, 74 S.Ct. 78, 98 L.Ed. 64 (1953) (after recognizing that Congress had thirty years since Federal Baseball to bring baseball within the antitrust laws and had not done so, concluding that “the business of providing public baseball games for profit between clubs of professional baseball players was not within the scope of the federal antitrust laws”); Flood v. Kuhn, 407 U.S. 258, 283-84, 92 S.Ct. 2099, 32 L.Ed.2d 728 (1972) (because Congress had acquiesced in the. baseball exemption by, inaction, “the business of baseball [is] outside the scope of .the [Sherman] Act”). In spite of numerous commentators arguing it should be otherwise, see D. Logan Kutcher, Note, Overcoming an. “Aberration”:- San.Jose Challenges Major League Baseball’s Longstanding Antitrust Exemption, 40 J. Corp. L. 233 (2014); Michael J. Mozes, et al., Adjusting the Stream?--Analyzing Major League Baseball’s Antitrust Exemption After American Needle, 2 Harv. J. Sports & Ent. L.

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Cite This Page — Counsel Stack

Bluebook (online)
136 F. Supp. 3d 911, 2015 U.S. Dist. LEXIS 133190, 2015 WL 5731736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/right-field-rooftops-llc-v-chicago-cubs-baseball-club-llc-ilnd-2015.