White v. National Football League

129 F. Supp. 3d 683, 92 Fed. R. Serv. 3d 1294, 2015 U.S. Dist. LEXIS 119064, 2015 WL 5229386
CourtDistrict Court, D. Minnesota
DecidedSeptember 8, 2015
DocketCivil File No. 92-906 (MJD)
StatusPublished

This text of 129 F. Supp. 3d 683 (White v. National Football League) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. National Football League, 129 F. Supp. 3d 683, 92 Fed. R. Serv. 3d 1294, 2015 U.S. Dist. LEXIS 119064, 2015 WL 5229386 (mnd 2015).

Opinion

MEMORANDUM OF LAW & ORDER

MICHAEL J. DAVIS, District Judge.

I. INTRODUCTION AND SUMMARY OF THE COURT’S ORDER

This matter is before the Court on Plaintiffs’ Rule 60(b) Motion [Docket No. 716] and on remand from the Eighth Circuit Court of Appeals. See White v. Nat’l Football League, 756 F.3d 585 (8th Cir.2014). The National Football League Players Association (“NFLPA”) claims that the case should be reopened under Federal Rule of Civil Procedure 60(b)(3) because the- National Football League (“NFL” or “League”) engaged in fraud, misrepresentation or other misconduct to coerce, the NFLPA-into dismissing unknown claims in exchange for ending the lockout. The Court denies the motion.

Overall, the NFLPA has failed to demonstrate that the NFL engaged in any fraud or other misconduct that prevented the NFLPA from fully and fairly presenting its case. The parties were embroiled in a high-profile, high-pressure labor dispute and multiple lawsuits.' After lengthy negotiations through sophisticated counsel, the parties made a calculated decision to enter into a settlement. The terms of the [685]*685settlement were carefully reviewed, and written discussion was had regarding the release of unknown claims. Knowing that discovery was not yet closed and that there were allegedly significant gaps in discovery, the NFLPA weighed the costs and benefits of a settlement at that time and took the conscious risk to release unknown claims as part of the consideration for an end to the lockout. The NFLPA’s claimed later discovery that it might have possessed a valid collusion claim is not a basis for invalidating the settlement. That is precisely the danger in releasing “unknown” claims — a danger the NFLPA recognized and decided was worth the risk in order to settle at that point in time.

II. BACKGROUND

The NFLPA, a labor union which represents players in the NFL, has filed a Rule 60(b) motion to vacate a Stipulation of Dismissal filed in this’ action. The Stipulation of Dismissal, filed in August 2011, purports to dismiss and release all claims against the NFL in this proceeding. This includes collusion claims relating to an alleged salary cap in League Year 2010, among others.

The NFLPA asserts generally that it is entitled to relief from the Stipulation of Dismissal because the NFL engaged in fraud or- misconduct to conceal or affirmatively misrepresent the NFL’s violation of its agreement that the 2010 League Year would be an uncapped year, in an effort to improperly obtain the NFLPA’s consent to dismiss this case. The Court’s earlier determination that it lacked jurisdiction to vacate the Stipulation of Dismissal pursuant to Rule 60(b) of the Federal Rules of Civil Procedure was reversed by the Eighth Circuit. Accordingly, this matter is once again before the Court for review.

A. The Parties

In 1992, Reggie White and four other NFL players commenced this antitrust class action against the League on behalf of all NFL players, seeking injunctive relief and damages stemming from the League’s free agency system, the college draft, the .right of first refusal component of Plan B, and other NFL rules. See White v. Nat’l Football League, 822 F.Supp. 1389, 1394-95 (D.Minn.1993). The Court certified a class of plaintiffs consisting of:

(i) all players who have been, are now, or will be under contract to play professional football for an NFL club at any time from August 31,1987 to the date of final approval of the settlement of this action and the determination of any appeal therefrom, and (ii) all college and other football players who, as of August 31, 1987, through the date of final approval of the settlement of this action and the determination of any appeals therefrom, have been, are now, or will be eligible to play football as a rookie for an NFL team.

Id. at 1395. A mandatory settlement class was certified, and the NFLPA became the exclusive bargaining authority for the players.

B. The Stipulation and Settlement Agreement

On February 26, 1993, the parties entered into a Stipulation and Settlement Agreement (“SSA”) designed to bring an end to this proceeding and a number of other related, pending lawsuits between the parties. (Kessler Deck, Ex. B, SSA.) As the Eighth Circuit explained::

Although the SSA was styled as a settlement of the White lawsuit, it operated as a comprehensive collective bargaining agreement governing all aspects of labor relations between the League and its players. The SSA awarded monetary relief to each member of the White 'class to compensate them for the League’s alleged antitrust violations, but it also [686]*686set forth rules encompassing free agency, the college draft, player salaries, and a host of other labor-related issues.

White, 756 F.3d at 589.

The District Court granted final approval of the class settlement by Final Consent Judgment dated August 20, 1993, but retained jurisdiction over the action to “effectuate and enforce the terms of the [SSA], as amended” and the Final Consent Judgment. White v. Nat’l Football League, 836 F.Supp. 1508, 1511 (D.Minn.1993), aff'd, 41 F.3d 402 (8th Cir.1994).

The parties amended and" extended the SSA in 1996, 1999, 2002 and 2006. [Docket Nos. 415, 455, 504 and 526] The SSAs provided for the appointment of a Special Master to enforce them terms and the Final Consent Judgment.

C. The 2010 League Year

On May 20, 2008, the NFL opted out of the final two years of the 2006 SSA. White v. Nat’l Football League, 766 F.Supp.2d 941, 944 (D.Minn.2011). This meant that 2010 became the Final League Year under the 2006 SSA. White, 756 F.3d at 590. Under the 2006 SSA, the “Final League Year shall always be an Uncapped Year”— a year in which there would be no limit on the amount of money that teams could pay their players. Id. (See also SSA, Art. XI, § 1.).

Contrary to expectations, player salaries in 2010 did not increase, but remained stable. White, 756 F.3d at 590. This fueled the players’ suspicions that NFL teams were colluding to avoid bidding wars over free agents that might otherwise follow from the lack of a salary cap. Id.

D. Allegations Made During the 2010 League Year

During the 2010 League Year, NFLPA executives and agents publically accused the NFL of colluding by operating as if there were a salary cap. (See, e.g., Block Deck, Ex. 2, Jarrett Bell, Lack of a Salary Cap Leaves Wide Range of Spending in NFL Clubs, USA Today, Mar. 17, 2010; Block Deck,- Ex. 3, Barry Wilner, Business as Usual in NFL Free Agency, USA Today, Mar. 10, 2010; Block Deck, Ex. 5, Jon Sáraceno, NFLPA Chief: Teams Spending Less Money on Player Salaries, USA Today, Oct. 9, 2010.).

E. TY Revenues Proceedings

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Bluebook (online)
129 F. Supp. 3d 683, 92 Fed. R. Serv. 3d 1294, 2015 U.S. Dist. LEXIS 119064, 2015 WL 5229386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-national-football-league-mnd-2015.