Judge Leaves Tiny Gap for Oakland's Antitrust Lawsuit Over Raiders Run to Vegas
A federal judge overseeing the City of Oakland's lawsuit against the National Football League and the Raiders over the team's impending move to Las Vegas has left just a sliver of running room for the city's antitrust claims.
July 19, 2019 at 02:37 PM
5 minute read
SAN FRANCISCO — A federal judge overseeing the City of Oakland's lawsuit against the National Football League and the Raiders over the team's impending move to Las Vegas has left just a sliver of running room for the city's antitrust claims.
U.S. Chief Magistrate Judge Joseph Spero announced at a court hearing Friday morning that he was inclined to grant the league and team's motion to dismiss the case and grant the city leave to amend their complaint.
But he made it clear that he was skeptical of the city's claims that, by voting to bless the team's move, the league and its teams had illegally constrained trade in any way.
“Why is it anti-competitive to allow teams to do what they want?” asked Spero rhetorically at one point late in the hearing.
The city sued the Raiders, the NFL and its remaining 31 teams late last year, claiming they conspired to “boycott” Oakland, in violation of federal antitrust laws and in breach of the league's own relocation policies in signing off on the team's upcoming move to Las Vegas. The city claims the $378 million “relocation fee” that the team paid acted as “supra-competitive cartel payments” to the other teams' owners.
But Spero said Friday that he wasn't persuaded that the payment could provide the basis for an antitrust claim, calling it a “disincentive” to the team's move.
When one of the city's lawyers, Berg & Androphy's James Quinn, said that it would be fans in Las Vegas rather than the team itself that ended up paying for the fee, Spero responded skeptically.
“That's a ridiculous argument. That's true of every product,” said Spero, noting the companies will always charge prices that consumers are willing to pay to fund the cost of doing business.
The judge, however, did indicate that restrictions on the number of teams in the league could possibly provide the basis for an antitrust claim. But he warned the city's lawyers that they will have to show that the league's current 32-team restriction is “an unreasonable constraint on trade” and that Oakland would be in line to keep the Raiders or add a new franchise “but for” the league's restrictions.
“I have my own personal feelings on whether this is good for the game or good for municipalities or good for the country. Those are beside the point at the moment.” —U.S. Chief Magistrate Judge Joseph Spero
In the motion to dismiss, filed by the team's lawyers at Arnold & Porter Kaye Scholer and the league's lawyers at Covington & Burling, the defendants claimed that the city is attempting “to turn antitrust on its head.” They contend that the team's move was prompted by inter-city competition for an NFL franchise and that the opportunity for the team in Las Vegas is so much more attractive than the team is willing to pay the fee to move.
“In a free market, a product or service flows from a willing seller to the willing buyer who values it most,” the defendants' lawyers wrote. “No one has impeded that competitive process here.”
Lawyers for both the league and the team Friday attempted to get Spero to stick with his initial tentative ruling to dismiss the city's breach of contract claims based on the league's written relocation policy without leave to amend.
Another of the city's lawyers, Bruse Simon of Pearson, Simon & Warshaw, convinced the judge to back away from dismissing the contract claims for good arguing there were issues of fact over whether the city was meant to be a third-party beneficiary under the written policy. Spero ultimately said that he'd allow the city's lawyers to amend their contract claims but reassured the defense lawyers.
“They know I'm skeptical on this subject,” Spero said of the city's legal team.
Although the Oakland's lawyers took the brunt of the judge's hits during the hearing, Spero did grant them 15 days longer than the typical 30-day turnaround to amend their complaint. The judge also at one point appeared to express some sympathy for the jilted city's position.
“I have my own personal feelings on whether this is good for the game or good for municipalities or good for the country,” Spero said. “Those are beside the point at the moment.”
A lawyer from the Antitrust Division of the Department of Justice, which had asked to weigh in on an issue in the case, was present in the courtroom but did not speak during arguments.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllCourt rejects request to sideline San Jose State volleyball player on grounds she’s transgender
4 minute readFederal Judge Rejects Teams' Challenge to NASCAR's 'Anticompetitive Terms' in Agreement
Trending Stories
- 1Judge Denies Sean Combs Third Bail Bid, Citing Community Safety
- 2Republican FTC Commissioner: 'The Time for Rulemaking by the Biden-Harris FTC Is Over'
- 3NY Appellate Panel Cites Student's Disciplinary History While Sending Negligence Claim Against School District to Trial
- 4A Meta DIG and Its Nvidia Implications
- 5Deception or Coercion? California Supreme Court Grants Review in Jailhouse Confession Case
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250