Wichard v. Suggs

95 F. Supp. 3d 935, 2015 U.S. Dist. LEXIS 36994, 2015 WL 1321527
CourtDistrict Court, E.D. Virginia
DecidedMarch 24, 2015
DocketNos. 1:15cv3 (JCC/TCB), 1:15cv83
StatusPublished
Cited by3 cases

This text of 95 F. Supp. 3d 935 (Wichard v. Suggs) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wichard v. Suggs, 95 F. Supp. 3d 935, 2015 U.S. Dist. LEXIS 36994, 2015 WL 1321527 (E.D. Va. 2015).

Opinion

MEMORANDUM OPINION

JAMES C. CACHERIS, District Judge.

This matter is before the Court on a petition to confirm an arbitration award under the Federal Arbitration Act (“FAA”). The underlying arbitration award involved a contract dispute between [939]*939Terrell Suggs, a professional football player, and his former agent, Gary Wichard. The arbitrator found in favor of Mr. Wichard’s estate and awarded the estate $172,800.00 in agent fees for the 2013 season. Two motions are currently pending before the Court: (1) the estate’s motion to confirm1 the arbitration award [Dkt. 2]; and (2) the estate’s motion to stay certain claims raised by Mr. Suggs in his petition to vacate, pending arbitration of those claims [Dkt. 19].

For the following reasons, the Court will confirm the arbitration award and deny the motion to stay certain claims.

I. Background

A. Factual Background

From the 1980s until his untimely death after a serious illness in March of 2011, Gary Wichard (“Mr. Wichard” or- “the agent”) was a certified National Football League Players Association (“NFLPA”) Contract Advisor and a principal in the sports management firm ProTect Management. (Pet. to Confirm Arbitration Award (“Pet. to Confirm”) [Dkt. 1]; Arbitrator’s Opinion & Award (“Op. & Award”) [Dkt. 1-5] Ex. D at 4.) The conduct and services of Contract Advisors, colloquially known as agents, are regulated by the NFLPA Regulations Governing Contract Advisors (“the Regulations”). (Pet. to Confirm Ex. C [Dkts. 1-3, 1-4] Reg. § 3.) Contract Advisors assist NFL Players in, inter alia, contract negotiations with NFL teams. (Reg. § (1)(B).) Contract Advisors are prohibited from negotiating on behalf of an NFL player, however, until the agent and player have entered into a Standard Representation Agreement (“SRA”). (Id. at § 3(B)(1).)

On January 3, 2003, Mr. Wichard entered into an SRA with Respondent Terrell Suggs (“Mr. Suggs” or “the player”), a defensive end/linebacker from Arizona State University who was preparing to enter the 2003 NFL Draft. (Pet. to Confirm Ex. B [Dkt. 1-2] (hereinafter “SRA”).) SRAs are approved by the NFLPA; in fact, the NFLPA logo is affixed at the top of the SRA between Mr. Wichard and Mr. Suggs. (Id.) The SRA provided that Mr. Wichard would “act[ ] in a fiduciary capacity on behalf of [Mr. Suggs] ... [and] represent, advise, counsel, and assist [Mr. Suggs] in the negotiation, execution, and enforcement of his playing contract(s) in the National Football League.” (Id. at § 3.) “If [Mr. Wichard] succeeded] in negotiating an NFL Player Contract acceptable to [Mr. Suggs],” Mr. Suggs agreed to pay Mr. Wichard “a fee of three percent (3%) of the compensation received by [Mr. Suggs] for each such playing season....” (Id. at § 4.) Subsequently, after entering into the SRA, Mr. Suggs was drafted by the Baltimore Ravens in the first round of the 2003 NFL Draft. (Op. & Award at 5.)

After early success in his professional football career,2 on July 15, 2009, Mr. Suggs signed a five-year NFL Player Contract with the Baltimore Ravens worth approximately $62.5 million, which also included an option for the 2014 season (“the 2009 Contract”). (Op. & Award at 6; Pet. to Vacate Arbitration Award [Dkt. 1 in Case No. 1:15cv83] (hereinafter “Pet. to Vacate”) ¶ 14.) In 2010, the Baltimore [940]*940Ravens exercised the option under Mr. Suggs’ 2009 Contract for the 2014 season, which in effect made the term of the contract six years instead of five years, for the 2009 through 2014 NFL seasons. (Pet. to Vacate ¶ 14.) There is no dispute that Mr. Wichard negotiated the 2009 Contract on Mr. Suggs’ behalf.

On December 3, 2010, the NFLPA Committee on Agent Regulation and Discipline (“CARD”) suspended Mr. Wichard’s certification as a Contract Advisor for improper contact with a prospective NFL player who, at the time, was ineligible to be drafted. (Op. & Award at 6.) The nine-month suspension prohibited Mr. Wichard from (1) recruiting and signing NFL players to SRAs and (2) negotiating NFL Player Contracts with NFL teams on behalf of NFL players. (Id.) The suspension did not prevent Mr. Wichard from receiving fees or performing under NFL Player Contracts that he previously negotiated, which included the 2009 Contract. (Id. at 6-7.) Mr. Wichard agreed to the terms of the suspension. (Id. at 7.) The same day, Mr. Wichard sent a memorandum to all clients of ProTeet Management, advising them of the suspension, stating in part:

Absolutely nothing will change for any existing clients. I will still be able to provide the EXACT same services as an agent that I always have. I will still be able to communicate with NFL teams on your behalf. What I will not be able to do for nine months is recruit new clients. Once again, I just want to stress that this suspension will not affect existing clients in any way. Please contact me with any concerns you have.

(Id. at 7 (emphasis in original).)

Approximately four months later, on March 11, 2011, Mr. Wichard died. (Op. & Award at 8.) On March 15, 2011, ProTeet Management sent a memorandum to all clients, which stated in relevant part:

It was [Mr. Wichard’s] wish to keep ProTeet Management operating even after his [death]. In light of [Mr. Wichard’s] wishes we are proud to announce that ProTeet Management will be honoring [Mr. Wichard] by continuing to function as we have for [the] last three decades. As a certified NFL Contract Advisor, Jason Chinn [(“Mr. Chinn”)] will continue to run the day-to-day operations for ProTeet. As always, please feel free to contact any of us with any questions or concerns. We really appreciate all of your understanding and support.

(Id.) On November 15, 2011, Mr. Suggs signed a new SRA with Contract Advisor Joel Segal, who is not associated with ProTect Management.3 (Id. at 9.) Mr. Suggs was named the NFL’s Defensive Player of the Year for the 2011 NFL season. (Id. at 10.)

During the period of Mr. Wichard’s illness and/or following his death, Mr. Suggs received two reprimands from the Baltimore Ravens on October 8, 2010 and November 16, 2011. (Op. & Award at 8.) Mr. Suggs also received several fines totaling $42,500 from the NFL for violations of the uniform rules, or as penalties imposed for unnecessary roughness or grabbing the face mask of an opposing player, in the following amounts on the following dates: (1) $10,000 on December 7, 2010; (2) $15,000 on January 4, 2011; (3) $7,500 on September 27, 2011; (4) $5,000 on October 5, 2011; and (5) $5,000 on November 15, 2011. (Id. at 8-9.) Mr. Suggs did not appeal any of these fines. (Id. at 9.)

It is undisputed that Mr. Suggs paid Mr. Wichard, ProTeet Management, or Mr. [941]*941Wichard’s Estate the three-percent fee under the SRA for the 2009, 2010, 2011, and 2012 NFL Seasons, which was calculated based on the compensation that Mr. Suggs received from the Baltimore Ravens for each individual season. (Op. & Award at 10; Pet. to Vacate at ¶ 23 (“From 2009 to 2012, Mr. Suggs continued to pay fees totaling $1,449,000 to the Wichard Estate.”).)

On November 12, 2013, ProTect Management sent Mr.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
95 F. Supp. 3d 935, 2015 U.S. Dist. LEXIS 36994, 2015 WL 1321527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wichard-v-suggs-vaed-2015.