Stephen D. Atwater v. The National Football League

626 F.3d 1170, 189 L.R.R.M. (BNA) 2834, 2010 U.S. App. LEXIS 24067, 2010 WL 4721712
Court of Appeals for the Eleventh Circuit·Decided November 23, 2010·No. 09-12556·Published·Cited by 40 cases

Opinion

EBEL, Circuit Judge:

The dispositive question presented by this appeal is whether § 301 of the Labor-Management Relations Act (“LMRA”), 29 U.S.C. § 185, preempts Plaintiffs’ state-law claims asserted against the National Football League (“NFL”) and the National Football League Players’ Association (“NFLPA”). Because Plaintiffs’ claims arise from or are substantially dependent upon an interpretation of the terms of a collective bargaining agreement (“CBA”), we conclude those claims are preempted. 1

I. Background

Plaintiffs include several former NFL players, the spouse of one of the players, and several investment entities controlled by them. During 2004 and 2005, Plaintiffs invested approximately $20 million with Kirk Wright and Nelson “Keith” Bond, who along with others operated an investment company, International Management Associates (“IMA”). Unbeknownst to Plaintiffs, Wright was actually conducting a Ponzi scheme through which he stole most of the money Plaintiffs invested with IMA. IMA eventually sought bankruptcy relief. Wright was convicted on a number of federal felony charges and thereafter killed himself.

In this litigation, Plaintiffs sued the NFL and the NFLPA, alleging Plaintiffs would not have invested money with IMA had Defendants given them accurate information about Wright, Bond and IMA. More specifically, Plaintiffs complained that the NFLPA listed Wright and Bond with the NFLPA’s Financial Advisors Program without first conducting a proper investigation. As for the NFL, Plaintiffs asserted that several Plaintiffs requested, and the NFL provided, background checks on Wright, Bond and IMA that were inadequate. Based upon these allegations, Plaintiffs invoked the federal courts’ diversity jurisdiction, see 28 U.S.C. § 1332, asserting claims against the NFL and NFLPA under Georgia law for negligence, negligent misrepresentation, and breach of fiduciary duty. 2

The NFL and the NFLPA argued that § 301 of the LMRA preempted Plaintiffs’ state-law claims because these claims arose from, or were substantially dependent upon an interpretation of, the CBA between the NFL’s Management Council (“NFLMC”) and the NFLPA. According to the NFLPA, its Financial Advisors Program stems directly from the section of the CBA that provides:

Section 12. Career Planning Program: The parties will use best efforts to establish an in-depth, comprehensive *1175 Career Planning Program. The purpose of the program will be to help players enhance their career in the NFL and make a smooth transition to a second career. The program will also provide information to players on handling their personal finances, it being understood that players shall be solely responsible for their personal finances.

(Doc. 180, ex. 1 at 80 (2002 CBA Art. LV § 12 3 ).) According to the NFLPA, it provides the Financial Advisors Program to its members in an effort to meet the CBA’s mandate that the NFLPA provide players with information regarding the handling of their personal finances.

The NFL asserted that it provides background checks on people and companies with whom players and former players are thinking of doing business in an effort to meet its own obligations under the CBA’s “Career Planning Program” provision. In addition, the NFL argued that it could not be liable for providing Plaintiffs with any financial information, based upon the CBA’s disclaimer that “players shall be solely responsible for their personal finances.” (Id.)

Agreeing with the NFL and NFLPA, the district court held § 301 preempted Plaintiffs’ state-law claims and, thus, granted Defendants summary judgment on those claims. Plaintiffs appeal from that decision. 4

The district court also granted Plaintiffs summary judgment on several counterclaims that the NFLPA asserted against them. The NFLPA cross-appeals from that decision. We have jurisdiction to consider these appeals under 28 U.S.C. § 1291.

II. Standard of review

This court reviews the district court’s summary judgment decision de novo, viewing the evidence in the light most favorable to the non-moving party. See Bartholomew v. AGL Res., Inc., 361 F.3d 1333, 1337 (11th Cir.2004). Summary judgment is appropriate “if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” 5 Fed.R.Civ.P. 56(c)(2).

*1176 III. Summary judgment for the NFL and NFLPA on Plaintiffs’ state-law claims

A. Preemption under Section §01 generally

In order to insure the uniform interpretation of collective bargaining agreements throughout the nation, § 301(a) completely preempts state-law claims, including state tort claims, that require the interpretation or application of a CBA. 6 See Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399, 403-06, 108 S.Ct. 1877, 100 L.Ed.2d 410 (1988); Caterpillar Inc. v. Williams, 482 U.S. 386, 388, 392-93, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). “Once an area of state law has been completely pre-empted, any claim purportedly based on that pre-empted state law is considered, from its inception, a federal claim, and therefore arises under federal law.” 7 Caterpillar, 482 U.S. at 393, 107 S.Ct. 2425.

Free access — add to your briefcase to read the full text and ask questions with AI

Stephen D. Atwater v. The National Football League, 626 F.3d 1170, 189 L.R.R.M. (BNA) 2834, 2010 U.S. App. LEXIS 24067, 2010 WL 4721712 (11th Cir. 2010).

626 F.3d 1170 (Stephen D. Atwater v. The National Football League) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related