Soar v. National Football League Players Ass'n

438 F. Supp. 337, 1975 U.S. Dist. LEXIS 15049
District Court, D. Rhode Island·Decided December 2, 1975·No. Civ. A. 4986·Published·Cited by 18 cases

Opinion

OPINION

PETTINE, Chief Judge.

This is a class action brought on behalf of professional football players who played in the National Football League prior to the *339 1959 season. Defendants are the National Football League (NFL) and two of its officers, Pete Rozelle and James Kensil and the National Football League Players Association (NFLPA) and two of its officers, William Curry and Edward Garvey. Plaintiffs seek recovery of certain funds allegedly due them in connection with a pension fund trust agreement originally established on April 23,1959 and executed in 1962, entitled the “Bert Bell NFL Player Retirement Plan.”

The plaintiffs’ Second Amended Complaint sets out four counts. Count II is a claim for breach of an alleged oral contract, allegedly entered into in 1959 between the “NFLPA” on behalf of the plaintiffs and the “NFL” by its then commissioner Bert Bell. Plaintiffs contend that this oral contract provided for the inclusion in a pension plan of players who retired prior to the 1959 NFL season and for the inclusion of pension credit for all years of service in the NFL prior to 1959 if a pension plan was established by the League and if sufficient funds became available to permit the pension trust to be amended to provide benefits for those players. As consideration for that alleged oral contract, plaintiffs contend that they and the “NFLPA” forbore from the bringing of an antitrust suit against the “NFL”.

In Counts I, III and IV, plaintiffs contend that the “NFLPA” defendants, with the knowledge and complicity of the “NFL” defendants, breached a fiduciary and contractual duty to obtain pension benefits for them substantially identical to those now in force for professional football players now covered by the “Bert Bell Retirement Plan” and that the present “NFLPA” has wrongfully usurped the original “NFLPA” as founded by the plaintiffs as signatory to the pension plan. Relief sought in all four counts is the declaration of. a resulting or constructive trust in favor of plaintiffs and the inclusion of plaintiffs in the “Bert Bell Retirement Plan” upon the same terms and conditions as the present beneficiaries thereof, or the establishment by the defendants of a trust with corpus sufficient to provide such benefits to plaintiffs; or the payment by the defendants to the plaintiffs of a sum sufficient to establish such a trust. Plaintiffs also seek money damages equal to the loss of retirement income from the inception of the trust and an accounting of all monies placed in the trust and all monies to be placed in the trust.

This ease is presently before the Court on motions for summary judgment by the “NFL” defendants and the “NFLPA” defendants and alternatively for the “NFLPA” defendants on a motion to dismiss the action as a class action. The “NFL” defendants contend that they are entitled to judgment as a matter of law on four grounds:

1. The alleged oral contract was not made with a person authorized to bind the “NFL”;
2. The alleged oral agreement is too indefinite to be enforceable as a contract;
3. There was no legal consideration on behalf of plaintiffs to support the alleged contract;
4. This action is barred by the Statute of Limitations. R.I.G.L. Ann. 9-1-13 (1956). 1

The “NFLPA” defendants argue they are similarly entitled to summary judgment because:

1. There is no evidence in the record of a contract between the plaintiffs and these defendants;
2. They are under no fiduciary duty to negotiate with the “NFL” for the inclusion of the plaintiffs in the pension plan;
3. As a result of recent developments in labor law these defendants have no ability to require negotiations with the “NFL” for inclusion of the plaintiffs in the pension plan.

*340 In the alternative, the “NFLPA” defendants seek dismissal of this action as a class action because the plaintiffs, since filing this suit in 1972, have made no effort to have this case certified as a class action.

I. CHRONOLOGY

The “NFLPA” was founded in late 1956. Creighton Miller served as counsel to the Association and the original officers elected in 1958 were Bill Howton, Kyle Rote and Bill Pellington. The Association’s principal objective at that time was to gain official recognition by the “NFL” member clubs of their representational status with respect to all player-employees and thereby to obtain for the players improved working conditions, salaries, etc. and the approval of a pension plan for “NFL” players. Sometime in the fall of 1957, the Players Association representatives, believing the “NFL” had not been responsive to their demands for recognition, considered the possibility of instituting an anti-trust suit against the “NFL”. At Commissioner Bell’s request, the Association agreed to postpone filing the suit until the “NFL” owners met with the Commissioner in December. At that December meeting the owners of the “NFL” member teams recognized the Players Association and granted certain demands regarding working conditions and salary.

The officers of the Players Association first discussed with Commissioner Bell and representatives of the “NFL” member teams the possibility of establishing a pension plan in January 1958. It was agreed that there would be a subsequent meeting in May 1958 at which William Dudley, a retired “NFL” player, would present a draft pension plan. At the May meeting, Dudley presented a draft pension plan prepared with the assistance of a Richmond, Virginia actuarial firm. The plan provided for eligibility for players active in the 1958 season who thereafter would play for five seasons in satisfaction of a five-year vesting requirement and provided for contributions to the plan by active “NFL” players. No agreement was reached at this meeting on this or any other plan.

In November 1958, the Players Association again considered bringing an anti-trust suit against the “NFL”. At a January 1959 meeting with the owners, the Association threatened to file suit unless the owners gave serious consideration to establishing a pension plan. Following the January meeting Sigmund Hyman of Baltimore began assisting the “NFL” member teams in drafting a plan and the “NFLPA” decided not to file their lawsuit. On April 23,1959, the member teams approved a pension plan for the “NFL” players. The plan would provide for eligibility for those players active in 1959 who thereafter played five years in the League (including the 1959 season). It was hoped the plan could be completely funded by the “NFL” member teams without player contributions. The actual pension trust agreement was executed in 1962 after a lengthy investigation of possible funding sources, and the first funds were paid into the trust that year. The plan was approved by the Internal Revenue Service as a qualified plan under 26 U.S.C. sec. 401 in March 1963. Bert Bell died in October 1959 and was replaced in January 1960 by defendant Pete Rozelle.

In October 1964, the “NFL” member teams amended the plan to permit players active in 1959 to utilize their seasons of “NFL” service prior to 1959 in order to satisfy the five-year vesting requirement.

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Soar v. National Football League Players Ass'n, 438 F. Supp. 337, 1975 U.S. Dist. LEXIS 15049 (D.R.I. 1975).

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