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    Monday, October 31, 2011

    The war between WVU and the Big East begins in earnest... WVU fires first shot out of it's musket..


    WVU files lawsuit against the Big East. (Adobe copy of the complaint.) Some important portions of the complaint are as follows:  
    • Paragraph 21 alleges, The Bylaws specifically contemplate withdrawal from the Big East.  Pursuant to the Bylaws, a member may withdraw from the Big East by providing written notice to the conference. The withdrawing member is further required to (a) specify an effective date of withdrawal which must be at least twenty-seven months after the date that the withdrawal notice is received by the commissioner; and (b) pay a withdrawal fee to the Big East in the amount of five million dollars (5,000.000.00)." 
    •  Paragraph 22 alleges, "In 2010 Texas Christian University ("TCU") accepted an invitation to join the Big East as an all sports member beginning in the 2012-2013 academic year.  TCU would be a football school.  the Big East invited TCU in an attempt to raise its profile as a major football conference an help insure it remained an AQ conference."  
    • Paragraph 23 alleges, "On September 17, 2011, Syracuse and Pittsburgh announced they were withdrawing from the Big East and that they accepted invitations to join the ACC."  
    • Paragraph 24 alleges, "On September 18, 2011, UConn President Susan Herbst issued a statement saying that although UConn is a "proud member of the Big East" the school was staying "actively involved in discussions with our counterparts from around the country to ensure the successful long-term future of our university's athletic program."  
    • Paragraph 25 alleges, "On September 26, 2011, the Governor of Connecticut confirmed that UConn was aggressively seeking an invitation to join the ACC due to the uncertainty that the Big East would remain an viable football conference in the near future."  
    •  Paragraph 26 alleges, On October 10, 2011, TCU announced that it was withdrawing from the Big East to become a member of the Big XII Conference.  The Big East did not require TCU to honor the twenty-seven month withdrawal period set forth in the bi-laws. 
    •  Paragraph 27 alleges, "Upon information and belief, representatives of Louisville, Rutgers, and Cincinnati have been engaged in discussions with other sports conferences, including the ACC, the Big XII, and the Big 10 for the purpose of trying to obtain invitations to join these conferences and withdraw from the Big East. 
    •  Paragraph 28 alleges, " On October 27, 2011, WVU received an invitation to join the Big XII for all sports, including football.  WVU accepted the Big XII's offer the same day.  As the Big East, in less than two months, had denigrated into a non-major football conference whose continued existence is in serious jeopardy, WVU had no choice but to accept the Big XII's offer.  
    •  [In the portion of the complaint that contemplates Commissioner Marinatto's complicity in this matter in his capacity as CEO of Big East the complaint further alleges...]  Paragraph 32 alleges, "The departure of members Pittsburgh, UConn, and TCU created an imbalance and disparity between the football and non-football playing schools that was neither contemplated nor addressed in the Bylaws.  The departure of these schools left six football schools left six football schools and eight non-football schools.  The sudden withdrawal of thirty-three percent of the football schools resulted in the football schools  being subjected to increased governance by the non-football schools.  This disparity was not considered in the Bilaws, and the departure of the above-mentioned schools has rendered WVU's performance in the Big East commercially impracticable."    
    •  Paragraph 33 alleges, "During the weeks that followed the departure of Pittsburgh, Syracuse, and TCU, and the public acknowledgment by UConn that it was exploring other conference affiliations, the Big East and its Commissioner further breached their fiduciary duties to the Big East football schools.  The Big East football schools advocated measures to be taken by the Big East and its Commissioner to maintain the level of competition of the Big East football conference.  The non-football schools repeatedly exerted their new-found level of increased governance at the expense and to the detriment of the football schools.  The Commissioner did nothing to protect the football playing schools and in fact took measures to further protect and advance the interests of the non-football playing schools."  
    •  Paragraph 34 Alleges, "This lack of leadership, breach of fiduciary duties by the Big East and its Commissioner, and voting disparity between the football and non-football schools resulted in the Big East football conference no longer being a viable and competitive football conference.  Additionally, upon information and belief, is expected by WVU and others that the Big East will lose its position as an AQ conference.  Accordingly, the Big East Conference and its Commissioner, through their actions, breached their contract to WVU and nullified and voided the Bylaws."  
    •  Paragraph 40 alleges, "In addition, WVU recently submitted an offer to the Commissioner proposing that WVU be permitted to immediately withdraw from the Big East in exchange for payment of certain monies with this offer."  
    •  Paragraph 41 alleges, "Following the receipt of the aforementioned offer or proposal, the Commissioner accepted WVU's tendered enclosed payment, thus accepting WVU's offer to immediately withdraw from the Big East on the terms WVU submitted."  
    •  Paragraph 47 alleges, "The Commissioner's acceptance of WVU's submitted monetary payment constitutes acceptance of WVU's proposal or offer to immediately withdraw from the Big East."  
    •  Paragraph 48 alleges, "Moreover, the Commissioner's excusal of TCU's noncompliance with the 27-month notice provision of the Agreement constitutes a waiver of this same provision with respect to WVU.  
    • Paragraph 57 alleges, "Due to circumstances and events beyond WVU's control, which are substantially different and materially different from what WVU reasonably anticipated, WVU's performance under the Agreement has become impossible or unreasonably burdensome."     
    • Paragraph 69 alleges, "The provision of the Agreement requiring WVU to provide twenty-seven month's notice before withdrawing from the Agreement constitutes an unreasonable restrain on trade."  
    •  Paragraph 70 alleges, "This restrain is larger and more extensive than was required for the necessary protection of the Big East's business interest."  
    •  Paragraph 71 alleges, "Further, holding WV to the twenty-seven month notice provision of the Agreement will contravene public policy."  
    •  Paragraph 77 alleges, "Absent a Court order permanently enjoining the Big East from enforcing the 27-month notice provision against WVU, WVU has no adequate remedy at law to protect its interests and will suffer continuing and irreparable damages and injury."

    The Big East responds with this statement:  “We are disappointed that West Virginia has adopted this strategy and cannot imagine why it believes it does not have to respect and honor the bylaws it agreed to as a member of the Big East.  Based on an initial review of the lawsuit, it is clear that the allegations and claims in it are false and inaccurate. Certainly there is nothing in it that would justify WVU’s not fulfilling its obligations. To put it simply, a contract is a contract," said Marinatto.
     “Once we have reviewed the filing, we will explore all our legal options and will act vigorously to ensure that WVU lives up to all its obligations to our conference. In the meantime, this lawsuit will not interfere in any way with our ongoing efforts to strengthen and expand the Big East.”

    Once again in true Big East fashion, their posture is one of reaction.  They haven't made a proactive move throughout this process and as a result of their continued mismanagement are once again having to say good bye to another member.  

    WVU, as it alleges in the aforementioned complaint, was forced to accept the offer to join the Big 12.  As for why West Virginia "adopted this strategy" it had no choice.  The Big East wishes to force WVU into a specific performance (This is a legal term of art, used in contract law: An extraordinary equitable remedy that compels a party to execute a contract according to the precise terms agreed upon or to execute it substantially so that, under the circumstances, justice will be done between the parties. Specific performance grants the plaintiff what he actually bargained for in the contract rather than damages (pecuniary compensation for loss or injury incurred through the unlawful conduct of another) for not receiving it; thus specific performance is an equitable rather than legal remedy. By compelling the parties to perform exactly what they had agreed to perform, more complete and perfect justice is achieved than by awarding damages for a breach of contract.)of the contract terms.  WVU is seeking to first enjoin (legal term of art which means to stop action,) the Big East from enforcement of the 27 month rule and then seeks a "liquidated damages remedy"(Legal term of art which basically means to pay for value of that term of contract.) or damages (legal term of art, which seeks money for loss) for the Big East's breach of contract.)  This complaint has artfully alleged several issues for the Court to contemplate in its determination of this matter.  It should be noted that this suit was filed in the Mon County Circuit Court, of West Virginia.  My guess is that the first procedural response to this suit will be a motion to remove the case to Federal Court.  At that point the legal finagling will begin.  Rarely does this sports blog delve into the legal matters that come up in sports but in this particular case I feel compelled to report to you my readers all that I can on the matter.  WVU has taken the initiative in this matter.  I would give decent odds that WVU shall be playing in the Big XII conference in 2012.  I would also predict that WVU will pay to do so. 

    Just as we get to breath a collective sigh of relief at getting accepted into a viable AQ conference we now have to endure the legal circus that results from being successful in finding a new home.  Stay tuned as this drama develops. 

    Da Geek     

    6 comments:

    mtneerfan4life said...

    Thanks for the insight. Been looking for you comment on all this legal stuff.

    Jeremy Cooper said...

    Lord only knows how this case would shake out if it goes forward. I have a feeling that the jurisdictional issues will be showing up in Prof. Cummings' Civ Pro final exam scenarios this fall.

    The biggest question, to me, is what happens if the Big East wins and there's an injunction (which they will surely ask for in a counterclaim) compelling WVU to compete in the Big East for two more years? How would that mesh with the grant of rights WVU is making to the Big 12?

    Greg said...

    You have the legal insight but my guess is they settle. WVU pays to leave and plays in the Big 12 next year.

    If more teams leave, there won't be a football league to keep us in. I'm still not convinced all the invites will be accepted.

    wvlawgeek said...

    @mtneerfan4life This is just the beginning. I am hopeful albeit skeptical that this matter will be resolved quickly via a settlement. The biggest hurdle to this resolution is the fact that the Big East has dug their heals in regarding the 27 months. At this point I feel good about WVU playing sports in the Big XII in 2012, though I think it is going to be an expensive exit.

    @Jeremy Cooper Yes Jer this could be a crazy battle in Court. The jurisdiction and venue issues have yet to be played out but the removal brief shall be an interesting read, at least for this attorney. That issue alone shall have a great importance in how this all turns out. I guess we shall see sometime in the next 20 days.

    @Greg I don't know how long UConn and Louisville will be members of the Big East. Their problem is that they need a serious suitor. Not that I trust Swofford as far as I can throw him, but he indicated pretty strongly that the ACC is standing pat. I think he is fighting his own internal wars trying to keep Va Tech and Florida State in the fold. But until they are poached or right before they are poached is the only time I see UConn getting a real look from them. As for Louisville, I see them becoming members of the Big XII. I just have a feeling that Oklahoma wants the title game to be in the mix. Texas likes it as is and in the short run that is a more lucrative deal but I think the Big XII is going to go to 12 teams fairly soon.

    Da Geek

    Anonymous said...

    I would think that there are a lot of eyes on this suit from the Big 12. If this thing isn't settled quickly, or even if it looks like it may not come out in WVU's favor, the Big 12 has no choice but to expand immediately to give them 10 for next year. The Big 12 HAS to have 10 teams next year. I can only hope that WVU's ultimate acceptance into the league is dependent on our immediate availability. Though I would agree that WVU will ultimately pay to get out of the timeline, I also wouldn't be surprised if it drug out a little while.

    On another note, why hasn't the Big 12 implemented exit clauses amongst their schools? Is it correct to assume that A&M and Missouri will be playing in the SEC next year?

    wvlawgeek said...

    @Weezie The Big XII negotiated aTm on an agreeable exit fee. Missouri is in process of its negotiation with the conference but yes they shall pay too. What the Big XII has done for the future is model their Tier 1 and Tier 2 TV rights after the PAC 12 and Big 10 wherein each member grants its TV rights to the Big XII for 6 years. At that point they can renegotiate the those rights for future years. That leaves the Tier 3 (personal TV rights to each school ie: Texas) to do with that money as they will. This situation is actually more stabilizing than an exit fee or notice requirement as it is less likely to be assailed in a Court of law successfully. Kind of a no compete clause.

    The Big XII announced today that WVU's membership not contingent upon being able to play next year. Though, I am still very confident that WVU shall negotiate an acceptable fee for withdrawal this year or early next year.

    I have read some ridiculous articles regarding contract law and how WVU is bound to the terms on other sites. They clearly have no clue what this suit is about. The real key is whether or not a Court of Law is going to be willing to enforce a remedy at equity over a monetary damage. WVU is operating under other theories of recovery as well and may very well be successful under one of those as well.

    I think that you will find that this resolves after both sides have spent the necessary money on their attorneys to determine the least destructive result for their clients. It isn't in the Big East interests to fight this for too long as they are trying to assemble a workable league.

    I had said earlier that the Big East is going to attempt to remove this case to Federal Court. My father and I discussed this issue and one way to avoid that is to state that WVU is not suing for an amount greater than $75,000.00. Now that may be defeated if their is a Counter Suit with an amount in controversy greater than that sum.

    My guess is that one way or another it is going to be very difficult to stop this case from being removed from the Court located in Morgantown, WV. Anyway, I realize that this is only likely interesting to a Civil Procedure professor but that is the type of procedural maneuvering to expect before the meat of the issues is even addressed.

    I stand by my earlier predictions that WVU is going to exit early and pay for that exit in some real dollars. I maintain that such a move is provident so long as the numbers hover around the 25 million mark or below. WVU has some major donors willing to help with this endeavor, thus I think that said money will be there if needed.

    Da Geek

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