the Fan Expo, LLC v. National Football League

Court of Appeals of Texas·Decided May 22, 2019·No. 05-17-01304-CV·Published

Opinion

Affirmed; Opinion Filed May 22, 2019.

In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-17-01304-CV

THE FAN EXPO, LLC, Appellant V.

NATIONAL FOOTBALL LEAGUE, Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-16-04875

MEMORANDUM OPINION

Before Justices Myers, Osborne, and Nowell Opinion by Justice Myers

The Fan Expo, LLC sued the National Football League (NFL) for tortious interference with

a contract. The trial court granted the NFL’s motions for summary judgment. Appellant, The Fan Expo, brings three issues on appeal contending the trial court erred by granting the NFL’s motion for summary judgment because the evidence established a genuine issue of material fact concerning (1) intentional interference and (2) causation and damages, and because (3) the NFL did not conclusively establish its defense of justification. We affirm the trial court’s judgment.

BACKGROUND

Appellant was formed in 2015 for the purpose of hosting the National Fantasy Football Convention.1 The first convention was to be held in 2015 at a casino resort in Las Vegas.

1 Throughout the record and the briefs, the parties refer to the event as both the National Fantasy Football Convention and the National Fantasy Football Conference. The term “Convention” is used more frequently than “Conference,” so we shall refer to the event as the convention.

Appellant invited numerous active NFL players to attend. However, the NFL warned the players that attendance at the event would violate the NFL’s gambling policy and that the players could be subject to discipline. Appellant canceled the 2015 convention and sued the NFL.2 The litigation was ongoing during the events in this case, which involved appellant’s planning and preparation for the 2016 convention.

The 2016 convention was going to be a three-day event in July in California. According to Andy Alberth, appellant’s executive director, the centerpiece attraction at the 2016 convention was going to be the EA Sports Madden NFL 17 video game, where attendees could play the game against NFL players.

On March 22, 2016,3 Electronic Arts, Inc. (EA), the owner of the Madden NFL video game series, signed a “Sponsor Agreement” with appellant. The agreement provided that EA would be a “Participating sponsor” of the convention and pay appellant a sponsorship fee. The agreement did not state that EA would be a “partner.” EA also promised to provide “artwork, assets and/or copy as is needed for [the Convention’s] use solely in connection with this agreement.” Appellant promised it would submit to EA any materials using EA’s intellectual property for approval by EA before displaying them. EA sent appellant its logo for the Madden NFL 17 video game, which included the NFL’s shield logo. However, appellant displayed the Madden NFL 17 logo on its webpage without first submitting the display to EA for approval. Appellant’s webpage stated EA was a sponsor and partner for the convention.

The licensing agreement between EA and the NFL required EA to obtain the NFL’s approval for all “promotion, publicity or display materials depicting the Licensed Marks,” which

2 See Fan Expo, LLC v. Nat’l Football League, No. 05-16-00763-CV, 2018 WL 1890144 (Tex. App.—Dallas Apr. 20, 2018, pet. denied)

(mem. op.). After the cancellation of the 2015 convention, appellant sued the NFL for tortious interference with contract and tortious interference with prospective business relations. Id. at *2. The trial court granted the NFL’s motion for summary judgment, and this Court affirmed the trial court’s judgment. Id. at *2, 10.

3 Unless otherwise noted, all dates are during the year 2016.

included the NFL’s shield logo. Because appellant did not send the proposed display to EA for EA’s approval, EA could not obtain the NFL’s approval before appellant displayed the logo.

On April 18, Michael Buchwald, counsel for the NFL, viewed appellant’s website and saw the Madden NFL 17 logo. On Friday, April 22, Buchwald and Allison Villafane, the NFL’s senior counsel based in New York City, held a telephone call with EA’s vice president of business affairs, Lee Rawles. During the phone call, either Villafane or Buchwald told Rawles that the NFL was in litigation with appellant. They also discussed appellant’s display of the Madden NFL 17 logo without the NFL’s authorization. Rawles said he did not know whether EA was involved in the convention, and he told Villafane and Buchwald he would investigate the matter. After the phone call, there were numerous e-mails among EA’s personnel. The following Monday, April 25, EA’s product manager, Moya Dacey, e-mailed appellant stating EA would not be participating in the convention.

The next day, April 26, appellant’s lawyers sent an e-mail to the NFL’s Dallas lawyers.

The e-mail demanded that the NFL cease and desist from contacting sponsors of the convention, “demanding that they [the sponsors] withdraw from the event or intimidating them with the intent to make them withdraw from the event.”

Several hours after the cease-and-desist e-mail, Villafane sent a “follow-up” e-mail to Buchwald and Rawles discussing the April 22 telephone call. The e-mail stated that during the telephone call, the NFL said it did not approve of appellant’s promotional use of the NFL shield logo and requested “that EA take steps to have the NFL shield removed from the display.” The e-mail also stated the NFL would not object to the “EA Sports Madden 2017” logo remaining on appellant’s website as long as the NFL shield was removed. The follow-up e-mail also stated, “We [the NFL] reiterate that we have no issue with EA sponsoring or partnering with the NFFC [National Fantasy Football Convention] event. Our concern is with the NFFC’s promotional use

of the NFL Shield, which may falsely give the impression that the NFFC is sponsored by, endorsed by, or otherwise affiliated with, the NFL, when it is not.” Despite the NFL’s assurance to EA that it had “no issue” with EA’s involvement in the convention, EA did not immediately return to being a sponsor and participant in the convention.

On April 27, the day after appellant’s cease-and-desist e-mail and the NFL’s follow-up e-mail, appellant filed suit against the NFL for tortious interference with contract.

On June 14, appellant decided to cancel the convention. A week later, on June 21, EA’s events manager sent an e-mail to appellant stating EA wanted to participate in the convention, but appellant told her the convention had already been canceled. In July, appellant amended its petition, adding EA as a defendant and suing it for breach of contract and, in subsequent amendments, fraud and other torts. In August, EA paid appellant the sponsorship fee.

Both the NFL and EA filed motions for summary judgment. Following multiple hearings, the trial court granted both the NFL’s and EA’s motions for summary judgment and ordered that appellant take nothing on its claims. Appellant appeals the summary judgment in favor of the NFL, but appellant does not appeal the summary judgment in favor of EA.4 STANDARD OF REVIEW

The standard for reviewing a traditional summary judgment is well established. See McAfee, Inc. v. Agilysys, Inc., 316 S.W.3d 820, 825 (Tex. App.—Dallas 2010, no pet.). The movant has the burden of showing that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(c). In deciding whether a disputed material fact issue exists precluding summary judgment, evidence favorable to the nonmovant will be taken as true. In re Estate of Berry, 280 S.W.3d 478, 480 (Tex. App.—Dallas 2009, no pet.). Every

4 EA also filed a counterclaim against appellant. After the trial court granted EA’s motions for summary judgment, but before the trial court signed the final judgment, appellant and EA filed a joint motion to dismiss their claims against each other. The trial court granted the motion and dismissed the claims.

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