Saturday, August 26, 2023

NFL In Race Case Said Arbitration Mandatory Reconsideration Nixed, It Gets Stay as Appeals


By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTHOUSE, Aug 22 – In the racial discrimination case against the National Football League by Brian Flores and others, on May 2, 2022 U.S. District Court for the Southern District of New York Judge Valerie E. Caproni held a hearing. Inner City Press live tweeted it here and below.

On July 1 Flores' lawyers wrote to Judge Caproni (letter on Patreon here) requesting (and attaching) "appropriate discovery" - Wigdor's letter to Loretta Lynch including about Roger Godell's compensation and relationships with law firms, and Lynch's letter of June 27 calling the requests "entirely outside the scope of permissible discovery."

But not so fast. On July 18, Judge Caproni granted the coaches' request to put off their deadlines to answer the NFL's motion to compel arbitration, pending her decision on the coaches' request for discovery. Order on Patreon here.

On March 1, Judge Caproni ruled "Defendants’ motion to compel arbitration is GRANTED except that it is DENIED as to Brian Flores’s claims against the Denver Broncos, New York Giants, and the Houston Texans, and his related claims against the NFL. Defendants’ request to stay the case is DENIED as to Flores’s claims that may proceed to litigation and is GRANTED as to all of the claims that must be arbitrated.." Order on Inner City Press' DocumentCloud here.

On March 14, 2023, the coaches filed a request for reconsideration on mandatory arbitration, arguing that the NFL's arbitration agreements are more unconscionable that those in Pokorny and Hooters. Failure to reconsider the Court's order, they conclude, would result in manifest injustice.

On July 25, Judge Caproni denied the plaintiffs' - and the NFL defendants' - motions for reconsideration, and set a next date: "Plaintiffs, in essence, ask the Court to fashion a specific rule out of whole cloth to protect them from potential arbitrator bias that may never manifest itself. To do so would be in direct violation of the FAA’s admonition against carving out rules disfavoring the enforcement of arbitration agreements from generally applicable contract law. See Gilmer, 500 U.S. at 24.  CONCLUSION  For the foregoing reasons, both Plaintiffs’ and Defendants’ motions for reconsideration are DENIED."

  The NFL filed a notice of interlocutory appeal, and on August 21 wrote to Judge Caproni formally raising the holding in Coinbase v. Bielski "that a district court must stay its pre-trial and trial proceedings while an interlocutory appeal under 9 USC 16(a) is ongoing."

On August 22 Judge Caproni endorsed the letter and stayed the case: "MEMO ENDORSEMENT on re: [114] Letter filed by The National Football League, Denver Broncos, Houston NFL Holdings, L.P., New York Football Giants, Inc. ENDORSEMENT: Application GRANTED. The August 30, 2023, conference is CANCELLED, and all deadlines are STAYED. The Clerk of Court is respectfully directed to STAY the case. SO ORDERED. (Signed by Judge Valerie E. Caproni on 8/21/2023)." Watch this site.

From May 2: Flores' lawyer Douglas Wigdor: Your Honor should look at the underlying agreements - the NFL's attempt to force us into arbitration is unconscionable and would bar us from enforcing our rights. Mr. Flores interviewed with the NY Giants and was not subject to arbitration 

Judge Caproni: I understand your argument that he was not subject arbitration when seeking a job, so can sue for failure to hire. But on the rest -- 

Flores' lawyer: This is a unique circumstance.

  Judge Caproni: Every case says it's unique.

 Flores' lawyer: Roger Godell cannot be a fair arbitrator. He has unconscionable bias. He is paid over $100 million, and already expressed an opinion. He is biased. The failure to hire is not subject to arbitration so some piece of this case will be before this case anyway.  

Judge Caproni: So the question on the table is whether to proceeding in small bites. 

NFL's lawyer Loretta Lynch of Paul Weiss: This is all subject to arbitration NFL's lawyer: This is a contract issue. There is no need for discovery at this time.

 Judge Caproni: I will set a briefing schedule on the motion to compel. Mr. Widgor [Doug Wigdor, Flores' lawyer] if you feel there's a need for discovery, write me a 5 page letter 

Judge Caproni: The NFL's motion to compel is due on June 21, 25 page maximum. The plaintiffs' opposition is due July 22 and NFL's reply is due Aug 9. Do you want a referral for settlement conference? Wigdor: We are interested in the NFL being fair to black coaches. 

NFL's lawyer Loretta Lynch: We are taking steps, and invited Mr. Flores and Wigdor to be involved. But they have declined to do so. We don't see that a settlement conference would be useful.

Wignor: We'll only meet with judge present. Not with Godell. 

Judge Caproni: I take that as a "No." I still this could benefit from settlement. But you're not ready.

Wignor: Glad to be in court. 

Judge Caproni: Please come back. Adjourned.

Inner City Press will continue to cover the case.

The case is is Flores, et al. v. The National Football League, et al., 22-cv-871 (Caproni) 

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