VKK Corp. v. National Football League

187 F.R.D. 498, 1999 U.S. Dist. LEXIS 9383, 1999 WL 432557
CourtDistrict Court, S.D. New York
DecidedJune 22, 1999
DocketNo. 94 Civ. 8335(MP)
StatusPublished
Cited by2 cases

This text of 187 F.R.D. 498 (VKK Corp. v. National Football League) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VKK Corp. v. National Football League, 187 F.R.D. 498, 1999 U.S. Dist. LEXIS 9383, 1999 WL 432557 (S.D.N.Y. 1999).

Opinion

[499]*499 DECISION

MILTON POLLACK, Senior District Judge.

The Defendant Touchdown Jacksonville, Inc. (“TDJ, Inc. hereafter”) has moved for Summary Judgment on the claims alleged against it in the First Amended Complaint. TDJ, Inc. was added as a party defendant in the amended complaint served on April 21, 1998 in an ongoing ease in this Court brought in 1994. In its Answer to that complaint filed on June 23,1998, TDJ, Inc. pleaded that the defense of the Statute of Limitations, as well as plaintiff’s undisputed agreement with the NFL made on May 23, 1991 to remain in New England for three years precluded any claim against TDJ, Inc. herein.

The Clayton Act’s four-year limitation 15 U.S.C. § 15b applies because the cause of action accrued in the Spring of 1991, more than four years before the cause of action was first asserted by the amended complaint.

However, the plaintiffs contend that under Rule 15(c), the claims asserted against TDJ, Inc. must be allowed to “relate back” to 1994, the date of the filing of the original complaint against Jacksonville Jaguars Ltd. (previously known as Touchdown Jacksonville, Ltd.), which was sued within the Statute of Limitations period.

On the basis of the evidence and the reasonable inferences to be drawn from the only specific cognizable evidence and the applicable legal considerations, the Court finds that the amended complaint does not relate back to 1994, since the plaintiffs chose at that time to sue only the entity which had become a member of the NFL (Jacksonville Jaguars, Ltd.) as a “payback” for alleged participation in the alleged scheme of blocking the relocation to Jacksonville of the Patriots football team; in other words, the plaintiffs chose not to sue a non-member of the NFL who was not rewarded with a membership in NFL. The Court finds that this choice of defendant to sue was a strategic decision by the plaintiffs.

In November 1993 the NFL announced the award of an expansion franchise to the defendant, Touchdown Jacksonville, Ltd. That entity had changed its name to Jacksonville Jaguars, Ltd. in December 1993, about a year previous to institution of this suit and the name change was known by the plaintiffs and acknowledged in paragraph “4” of the complaint.

That complaint stated that:

“the NFL sold the right to own and operate an expansion team to TJL [previously identified as Touchdown Jacksonville, Ltd. (“TJL”) ] — to be called the Jacksonville Jaguars — which will commence playing in the 1995 season. Upon information and belief, the sale to TJL was, among other things, a payback for TJL’s agreement to terminate negotiations with plaintiffs about relocating the Patriots to Jacksonville.” (Emphasis supplied).

This deliberate choice of the party to be sued is also set forth in the amended complaint at paragraph “5” reading:

“on or about November 30, 1993 the NFL awarded the right to own and operate an expansion team to TJ, Ltd. — to be called the Jacksonville Jaguars — which commenced playing in the 1995 season.”

The 1993 change of name was announced in a Certificate of Amendment to the Certificate of Limited Partnership filed in accordance with the Florida Statutes, reading:

“1. The name of this partnership is TOUCHDOWN JACKSONVILLE, LTD.
***
“3. On December 2,1993, the Partnership changed its name to “Jacksonville Jaguars, Ltd.” ... “The name of the Limited Partnership is: Jacksonville Jaguars, Ltd.”

In their motion to add TDJ, Inc. as an additional defendant in 1997, Victor Kiam had averred that “the NFL defendants sold to the defendant Touchdown Jacksonville, Ltd. the right to operate an NFL team,” and that they had only learned on January 13, 1997 from defendants’ opposition to a document filed in the ease, that the entity was [500]*500TDJ, Inc. which had made an agreement not to deal with Kiam on relocating the Patriots. The amended complaint asserted that this agreement violated the Sherman Act. Plainly however, Kiam and his personnel had known about the corporate entity six years earlier, but they elected to sue only the partnership entity in 1994 because it was the latter which had been awarded the expansion franchise by NFL. It was that award to the Jaguars partnership entity which Kiam was pursuing as “payback” for assisting to block Kiams relocation.

In his 1995 deposition, Victor Kiam had testified that in 1991 the Jacksonville “Group” had “formed a Corporation.” Moreover, Sam Jankovich, Kiam’s 1991 CEO, testified he had received documents in a meeting in April 1991 from corporate representatives one of which was titled as the “Role of Touchdown Jacksonville!, Inc.” and in another of which there is contained a resolution enacted by the City of Jacksonville which refers to “Touchdown Jacksonville!, Inc.”, as a private corporation. Self evidently when the 1994 complaint in this action was drawn, Jankovich and Kiam had known that the Corporation was the entity with which Kiam had their discussions in April 1991 but they also knew that the “payback” had been made to the partnership and they chose in the earlier complaint to pursue the “payback” obtained by “Jacksonville Jaguars, Ltd.”.

Consequently, the representation to Judge Sprizzo to obtain leave to add the corporation to this lawsuit (as a nonmember of the NFL) 31 months after the original complaint had been filed and 25 months after the Statute of Limitations had barred claims against additional defendants and five months after Kiam contended that the corporation’s very existence was first “known” by them — was simply not true and at any event was no excuse for omitting a claim against the Corporation in 1994, if there was any intention to also sue a non-member of the NFL on a relocation matter.

TDJ, Inc. Did Not Know and as a NonMember of NFL Had No Reason to Know That This Action Would Have Been Brought Against It

In order for an amended complaint to relate back, the plaintiff has the burden of demonstrating that the newly named defendant knew or should have known that the failure to name it in the original complaint resulted from a mistake. West v. City of New York, 1992 WL 249966, at *4 (1992). See also Giannini v. City of New York, 700 F.Supp. 202, 205 (S.D.N.Y.1988) (“Plaintiff has made no showing that these parties had any basis to believe that they were intended to be sued and were not sued as a result of a mistake of identity.”) (emphasis added). If the omission of the new defendant “could have reasonably been perceived as a result of a tactical decision, the court may properly conclude that the plaintiff made a deliberate choice not to name the defendant.” Id. and cases cited therein.

Delay in adding a new defendant may be considered by the court not only in determining whether the movant was guilty of inexcusable neglect, but also in determining whether the new defendant should have known that the failure to name it in the original complaint resulted from a mistake. Unicure, Inc. v. Thurman, 97 F.R.D. 1, 6 (W.D.N.Y.1982); Campbell v. Ward, 792 F.Supp. 1150, 1152 (E.D.Mo.1992) (delay of “several months” after learning of new defendant’s alleged role in suit belied contention failure to name new defendant in original complaint was mere mistake).

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

Related

Vkk Corporation v. National Football League
244 F.3d 114 (Second Circuit, 2001)
VKK Corp. v. National Football League
244 F.3d 114 (Second Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
187 F.R.D. 498, 1999 U.S. Dist. LEXIS 9383, 1999 WL 432557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vkk-corp-v-national-football-league-nysd-1999.