the Fan Expo, LLC v. National Football League, NFL Enterprises, LLC, NFL Network Services, Inc. D/B/A NFL Network, NFL Digital Media, and NFL.com

Court of Appeals of Texas·Decided April 20, 2018·No. 05-16-00763-CV·Published

Opinion

AFFIRM; Opinion Filed April 20, 2018

S In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-16-00763-CV

THE FAN EXPO, LLC, Appellant V.

NATIONAL FOOTBALL LEAGUE, NFL ENTERPRISES, LLC, NFL NETWORK SERVICES, INC. D/B/A NFL NETWORK, NFL DIGITAL MEDIA, AND NFL.COM, Appellees

On Appeal from the 193rd Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-15-08119

MEMORANDUM OPINION

Before Justices Lang, Fillmore, and Schenck Opinion by Justice Schenck The Fan Expo, LLC (“Fan Expo”) appeals the trial court’s grant of summary judgment in

favor of appellees National Football League (“the NFL”), NFL Network Services, Inc., NFL Enterprises, LLC, NFL.com, and NFL Digital Media (collectively, “NFL entities”), dismissing its claims. Fan Expo challenges the sufficiency of the summary judgment evidence to support judgment on the NFL’s justification defense and the trial court’s decision to grant the NFL leave to amend its summary judgment motion. Fan Expo also urges that fact issues exist on its claims against the NFL entities, and challenges the trial court’s decision to sustain objections to Fan Expo’s summary judgment evidence. We affirm the trial court’s judgment. Because all issues are settled in law, we issue this memorandum opinion. TEX. R. APP. P. 47.4.

BACKGROUND

In early 2015, Fan Expo was formed to create the National Fantasy Football Convention (“NFFC”), an organization intended to facilitate NFL fan and player interaction at an event that would feature current and former NFL players, media personalities, and football experts. The NFFC’s inaugural event (“Event”) was planned to take place on July 10–12, 2015, at the Venetian Resort Hotel Casino (“Venetian”) in Las Vegas, Nevada. Between March and May, the NFFC signed appearance agreements with approximately 60 NFL players and entered into verbal agreements with approximately 30 NFL players. Michael Fabiano (an on-air talent for NFL Network) and Desmond Purnell (a news reporter for NFL Network) also signed agreements to participate in the Event. Two producers for NFL Network’s Fantasy Live television show, Heather Pink and Dylan Milner, communicated with Fan Expo’s Executive Director Andy Alberth about Pink participating on a panel at the Event and about some of the Fantasy Live video production staff and on-air personalities attending the Event.

In late May 2015, a representative of an NFL team contacted Brook Gardiner, Senior Labor Relations Counsel for the NFL, to inquire whether NFL players’ participation in the Event would violate the NFL’s Gambling Policy. After conducting an investigation that included speaking with Alberth and reviewing the Event’s advertising materials, Gardiner concluded that NFL player participation in the Event would violate the Gambling Policy because of the location of the Event at the Venetian.1 He then contacted Sean Sansiveri, Vice President of Business and Legal Affairs for the National Football League Players’ Association (“Players’ Association”), to inform him that NFL Players planned to participate in the Event and that such participation would violate the NFL’s Gambling Policy. Based on his own investigation, Sansiveri believed “it was reasonable

1 The Gambling Policy prohibits NFL Personnel from “[p]articipating in promotional activities or other appearances at or in connection with events . . . that are held at or sponsored by casinos or other gambling-related establishments.”

to say that [NFL players’ participating in the Event] was a violation of the Gambling Policy.” Dexter Santos, the Players’ Association’s Vice President of Player Services, then called several agents and player representatives to alert them that the NFL considered NFL players’ participation in the Event to be a violation of the Gambling Policy and that the players could be subject to discipline by the NFL.

In July 2015, Fan Expo filed suit against the NFL, claiming tortious interference with contract and tortious interference with prospective business relationships.2 Its original petition alleged, among other things, that the NFL caused the cancellation of the Event by falsely representing to players and NFL personnel that participation in the Event would violate the NFL’s Gambling Policy. The NFL answered and asserted multiple defenses, including justification, on which it later moved for summary judgment against Fan Expo on all of its claims. That motion for summary judgment included as an attachment an affidavit from Gardiner and a copy of the Gambling Policy.

On February 8, 2016, the NFL amended its motion (“Amended MSJ”) with additional evidence, including the testimony of Sansiveri. In the Amended MSJ, the NFL argued in part that its Gambling Policy prohibited participating at events held at casinos or other gambling-related establishment and that the Gambling Policy applies to all NFL Players pursuant to the Collective Bargaining Agreement (“CBA”) between the Players’ Association and the NFL. Two weeks later, Fan Expo amended its petition to add claims for business disparagement, fraud, breach of contract, promissory estoppel, equitable estoppel, and quasi-estoppel. Fan Expo also responded to the Amended MSJ, asserting that the NFL’s motion failed to establish the NFL’s legal right to interfere with Fan Expo’s relationships with professional football players. According to Fan Expo, the NFL

2 As discussed infra, Fan Expo later amended its petition to assert claims against the other NFL entities: NFL Network Services, Inc., NFL Enterprises, LLC, NFL.com, and NFL Digital Media.

relied on the existence of the CBA to establish its authority to discipline NFL players but had not offered the CBA into evidence. Four days prior to the hearing on the Amended MSJ, the NFL filed a reply, to which it attached a copy of the CBA.

After conducting a hearing at which the NFL was granted leave to file its supplemental summary judgment evidence, the trial court granted the Amended MSJ on Fan Expo’s claims of tortious interference with contract and tortious interference with prospective business relationships and signed orders sustaining the NFL’s objections and overruling Fan Expo’s objections to the evidence. Fan Expo later amended its petition to assert claims against the other NFL entities and to assert claims based on its agreements with Fabiano and Purnell and its discussions with the Fantasy Live team.3 The NFL and the NFL entities moved for and were granted summary judgment (“Second MSJ”) on Fan Expo’s claims not disposed of by the order on the Amended MSJ. The trial court signed a final judgment ordering that Fan Expo take nothing from the NFL entities.

DISCUSSION

I. The NFL’s Justification Defense In its first set of issues, Fan Expo challenges the trial court’s decision to grant the NFL’s Amended MSJ, in which the NFL moved for traditional summary judgment and sought to establish the affirmative defense of justification on Fan Expo’s claims of tortious interference with contract and prospective business relationships. Fan Expo argues the NFL failed to conclusively prove its justification defense because it failed to explain how or why it had the authority to enforce the Gambling Policy.

3 In this petition, Fan Expo asserted the following claims: 1) business disparagement against the NFL, 2) fraud against the NFL, 3) fraud by non-disclosure against the NFL entities, 4) negligence against the NFL entities, 5) negligent misrepresentation against the NFL entities, 6) breach of contract and anticipatory breach of contract against the NFL entities, 7) tortious interference with contracts against the NFL, 8) tortious interference with prospective business relationships against the NFL, 9) promissory estoppel against the NFL entities, and 10) equitable estoppel and quasi-estoppel against the NFL entities.

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the Fan Expo, LLC v. National Football League, NFL Enterprises, LLC, NFL Network Services, Inc. D/B/A NFL Network, NFL Digital Media, and NFL.com (the Fan Expo, LLC v. National Football League, NFL Enterprises, LLC, NFL Network Services, Inc. D/B/A NFL Network, NFL Digital Media, and NFL.com) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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