Ronald Behagen v. Amateur Basketball Association of the United States of America, and William Wall

884 F.2d 524, 1989 U.S. App. LEXIS 12709, 1989 WL 98734
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 28, 1989
Docket87-1730
StatusPublished
Cited by19 cases

This text of 884 F.2d 524 (Ronald Behagen v. Amateur Basketball Association of the United States of America, and William Wall) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ronald Behagen v. Amateur Basketball Association of the United States of America, and William Wall, 884 F.2d 524, 1989 U.S. App. LEXIS 12709, 1989 WL 98734 (10th Cir. 1989).

Opinion

TACHA, Circuit Judge.

This is an appeal from a jury trial awarding the plaintiff, Ronald Behagen, treble damages under the federal antitrust laws as well as damages for the deprivation of liberty or property interests without due process of law. The defendants contend on various grounds that the jury verdicts should be overturned as a matter of law. We hold that the antitrust claim is barred by the express intent of Congress and that the due process claim is barred by a lack of governmental action. We reverse.

I.

The Federation Internationale de Basketball Amateur (FIBA) is the international organization that governs amateur basketball in its member countries. The Amateur Basketball Association of the United States of America (ABA/USA) is the FIBA member organization from the United States. In order for an American to play basketball in amateur competition outside the United States, the player is required to qualify as an amateur by receiving an ABA/USA travel permit and a FIBA license.

For an American who has played professional basketball, the amateur qualification process is known as reinstatement or reintegration. A reinstated player’s eligibility is still limited, however, in that the player may not qualify for a national team and therefore may not participate in competition such as the Olympic Games. During the time relevant to this case, FIBA published the following grounds for reinstatement: (1) the player had signed with a professional club prior to reaching age twenty-one and had withdrawn within the subsequent twelve-month period; (2) the player had withdrawn from professional competition in order to follow a recognized professional occupation and had been engaged in that occupation for at least one full year; or (3) the player suffered from a serious illness or was the victim of an incapacitating accident. In addition, FIBA had interpreted its regulations to forbid more than one reinstatement for any one player, although the parties here dispute the extent to which this no-second-reinstatement rule was known outside FIBA at that time.

The plaintiff, Ronald Behagen is a former collegiate All-American basketball player who went on to play professional basketball for several teams in the Nation *526 al Basketball Association. In the fall of 1979, Behagen joined a basketball team in Siena, Italy. The Italian league in which Behagen played is considered by FIBA to be an amateur league, and Behagen was therefore required to obtain amateur qualification. 1 Behagen never applied to the ABA/USA for a travel permit, but was nevertheless issued a license by FIBA. After completion of the 1979-1980 season, Behagen returned home to Atlanta where he attended an Atlanta Hawks-Washington Bullets basketball game. Behagen was subsequently approached about playing the season’s few remaining games for the Bullets, and he signed a contract to play in those games.

After concluding the season with the Bullets, Behagen returned to Italy and negotiated a contract with the Siena team for the 1980-1981 season. Although he played in a few preseason and exhibition games, again he failed to take action towards obtaining reinstatement by the ABA/USA. William Wall, the executive director of the ABA/USA, informed FIBA that Behagen had once again played professional basketball in the United States. Upon learning of Behagen’s professional play, FIBA informed the Siena team that Behagen was ineligible under FIBA regulations. The team then informed Behagen that they would not honor his contract for the 1980-1981 season.

Behagen then contacted the ABA/USA and FIBA about his eligibility and was informed that FIBA had a policy against granting any player a second reinstatement. He was told that his only hope for an appeal was to contact Dr. Borislav Stan-kovic, the Secretary General of FIBA. Be-hagen met briefly with Stankovic in Rome, but the no-second-reinstatement rule was not changed.

Behagen brought suit against FIBA, the ABA/USA, and William Wall, seeking the following relief: 1) treble damages for violations of the federal antitrust laws; 2) damages for tortious interference with contract; and 3) damages for the deprivation of liberty or property interests without due process of law. The federal district court dismissed FIBA as a party, granting summary judgment on a motion based on lack of personal jurisdiction. The Tenth Circuit reversed the lower court, finding that there were factual disputes material to the personal jurisdiction issue. Behagen v. Amateur Basketball Ass’n of the United States, 744 F.2d 731, 735 (10th Cir.1984), cert. denied, 471 U.S. 1010, 105 S.Ct. 1879, 85 L.Ed.2d 171 (1985).

Behagen and FIBA subsequently settled, but the remaining defendants proceeded to a jury trial. The jury rendered its verdict in favor of the defendants on the tortious interference with contract count, but in favor of the plaintiff on the antitrust and due process counts. The district court awarded attorneys’ fees and costs to the plaintiff and denied the defendants’ motion for judgment notwithstanding the verdict or, in the alternative, for a new trial. The defendants then appealed the adverse judgment to this court.

II.

When a trial in federal court is a trial to the jury, our review of the evidence is “limited to the inquiry as to whether the record contains substantial evidence to support the jury’s ... conclusion, viewing the evidence in the light most favorable to the prevailing party.” Kitchens v. Bryan County Nat’l Bank, 825 F.2d 248, 251 (10th Cir.1987). The trial court’s legal conclusions, however, are subject to de novo review, see United States v. Mississippi Valley Generating Co., 364 U.S. 520, 526, 81 S.Ct. 294, 297, 5 L.Ed.2d 268 (1961); United States ex rel. Bergen v. Lawrence, 848 F.2d 1502, 1505 (10th Cir.), cert. denied, — U.S. —, 109 S.Ct. 528, 102 L.Ed.2d 560 (1988), and therefore “[t]he appellate court is not bound by the trial *527 court’s conclusions of law,” State Distributors, Inc. v. Glenmore Distilleries Co., 738 F.2d 405, 412 (10th Cir.1984). This court’s power to correct errors of law encompasses “those [errors] that may infect a so-called mixed finding of law and fact, or a finding of fact that is predicated on a misunderstanding of the governing rule of law. Bose Corp. v. Consumers Union of United States, Inc., 466 U.S. 485, 501, 104 S.Ct. 1949, 1959, 80 L.Ed.2d 502 (1984).

III.

The defendants first contend that the district court erred in permitting the antitrust issue to go to the jury. The plaintiff alleged that the defendants violated section 1 of the Sherman Antitrust Act (Sherman Act), 15 U.S.C. § l, 2 by being “key participants in an illegal group boycott by FIBA, its member organizations, and the leagues governed thereby, of players who have played in the American professional basketball leagues more than once.” The jury found that there was a combination, agreement, or conspiracy among the defendants and alleged coconspirators resulting in an unlawful restraint of trade or commerce.

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Bluebook (online)
884 F.2d 524, 1989 U.S. App. LEXIS 12709, 1989 WL 98734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ronald-behagen-v-amateur-basketball-association-of-the-united-states-of-ca10-1989.