ACC files lawsuit against Maryland

[Upstate]

http://www.dukechronicle.com/article/acc-files-lawsuit-against-maryland-monday

 

[JeremyCuse]

http://www.dukechronicle.com/article/acc-files-lawsuit-against-maryland-monday

That didnt take long

 

[orange79]

Did MD give notice that they had no intention to pay the exit fee? Or is this just s preemptive strike?

 

[kingtidge]

Did MD give notice that they had no intention to pay the exit fee? Or is this just s preemptive strike?

I think their 'no' vote on the $50 mil increase could be construed as notice/intention...

 

[Alsacs]

I believe its a preemptive strike. When WVU sued the Big East it got Jurisdiction/Venue in WV Court. I believe since the ACC filed the case in NC State court Maryland will have it moved to the Middle District of North Carolina, United States District Court under diversity jurisdiction to get a more favorable judge. North Carolina State Judges are elected while US District Court judges are appointed by the POTUS and if its in NC State Court the judge will be under more pressure to rule in the ACC's favor due to re-election crap, thus in Federal Court MD will have a better chance.

 

[44PRIDE]

Anyone else find it ironic that breaking news on a lawsuit was provided by a Duke website?

 

[Whitey23]

Go get 'em boys!

 

[CuseLegacy]

With the exception obviously of Maryland, every single one of the ACC presidents unanimously agreed to this lawsuit – including North Carolina, Virginia, Virginia Tech, Florida State, Clemson … and any other school you want to add to the conference realignment rumor mill. You think the presidents would endorse this move if they were going to be the next to challenge it? Doesn’t make a bit of sense.

Not only were all 11 current ACC presidents in favor of it, but Pittsburgh, Syracuse and Notre Dame also endorsed their support of the lawsuit, according to a league source. That sign of solidarity is a strong step towards reiterating future stability in the league, and it proves the conference believes its exit fee is non-negotiable. ACC officials believe it is a legally binding agreement, and they tend to use Maryland to prove it.

No invitations have been sent to other programs about joining the ACC, according to a league source.

In order to replace a school, one first has to leave, and with a lawsuit pending, it might be even more difficult for Maryland to walk away than many had originally thought. ACC commissioner John Swofford has wished Maryland well in its pursuit of happiness in the Big Ten, but neither he nor any of the other university presidents are going to let Maryland leave the table without paying the bill first.

 

[Townie72]

With the exception obviously of Maryland, every single one of the ACC presidents unanimously agreed to this lawsuit – including North Carolina, Virginia, Virginia Tech, Florida State, Clemson … and any other school you want to add to the conference realignment rumor mill. You think the presidents would endorse this move if they were going to be the next to challenge it? Doesn’t make a bit of sense.

Not only were all 11 current ACC presidents in favor of it, but Pittsburgh, Syracuse and Notre Dame also endorsed their support of the lawsuit, according to a league source. That sign of solidarity is a strong step towards reiterating future stability in the league, and it proves the conference believes its exit fee is non-negotiable. ACC officials believe it is a legally binding agreement, and they tend to use Maryland to prove it.

No invitations have been sent to other programs about joining the ACC, according to a league source.

In order to replace a school, one first has to leave, and with a lawsuit pending, it might be even more difficult for Maryland to walk away than many had originally thought. ACC commissioner John Swofford has wished Maryland well in its pursuit of happiness in the Big Ten, but neither he nor any of the other university presidents are going to let Maryland leave the table without paying the bill first.

Sounds right to me. There's a lot of money and some principles at stake here.

 

[SU2NASA]

As a Michigan alum, I look forward to pounding Maryland and Rutgers into the ground like Indiana.

 

[kyleslamb]

With the exception obviously of Maryland, every single one of the ACC presidents unanimously agreed to this lawsuit – including North Carolina, Virginia, Virginia Tech, Florida State, Clemson … and any other school you want to add to the conference realignment rumor mill. You think the presidents would endorse this move if they were going to be the next to challenge it? Doesn’t make a bit of sense.

Not only were all 11 current ACC presidents in favor of it, but Pittsburgh, Syracuse and Notre Dame also endorsed their support of the lawsuit, according to a league source. That sign of solidarity is a strong step towards reiterating future stability in the league, and it proves the conference believes its exit fee is non-negotiable. ACC officials believe it is a legally binding agreement, and they tend to use Maryland to prove it.

No invitations have been sent to other programs about joining the ACC, according to a league source.

In order to replace a school, one first has to leave, and with a lawsuit pending, it might be even more difficult for Maryland to walk away than many had originally thought. ACC commissioner John Swofford has wished Maryland well in its pursuit of happiness in the Big Ten, but neither he nor any of the other university presidents are going to let Maryland leave the table without paying the bill first.

It's not solidarity, it's business. Every school right now is more interested in keeping a facade going in public while it scrambles behind the scenes to prepare for every possible scenario. People are reaching to imply this is a sign that everyone is committed. The real sign of commitment would have been to sign the grant of rights agreement but several reports have that being floated yesterday to no avail.

 

[Cootface]

It's not solidarity, it's business. Every school right now is more interested in keeping a facade going in public while it scrambles behind the scenes to prepare for every possible scenario. People are reaching to imply this is a sign that everyone is committed. The real sign of commitment would have been to sign the grant of rights agreement but several reports have that being floated yesterday to no avail.

Funny how the expected challenge is that a $50 million exit fee is punitive, but a 15 year GOR seems to be accepted as normal business.

 

[RollOrange]

With the exception obviously of Maryland, every single one of the ACC presidents unanimously agreed to this lawsuit – including North Carolina, Virginia, Virginia Tech, Florida State, Clemson … and any other school you want to add to the conference realignment rumor mill. You think the presidents would endorse this move if they were going to be the next to challenge it? Doesn’t make a bit of sense.

Not only were all 11 current ACC presidents in favor of it, but Pittsburgh, Syracuse and Notre Dame also endorsed their support of the lawsuit, according to a league source. That sign of solidarity is a strong step towards reiterating future stability in the league, and it proves the conference believes its exit fee is non-negotiable. ACC officials believe it is a legally binding agreement, and they tend to use Maryland to prove it.

No invitations have been sent to other programs about joining the ACC, according to a league source.

In order to replace a school, one first has to leave, and with a lawsuit pending, it might be even more difficult for Maryland to walk away than many had originally thought. ACC commissioner John Swofford has wished Maryland well in its pursuit of happiness in the Big Ten, but neither he nor any of the other university presidents are going to let Maryland leave the table without paying the bill first.

Good, screw Maryland and screw the B1G. Despite what Maryland's president thinks, it doesn't sound to me like that $50,000,000 is open to negotiation. It was put there for a reason, and how they handle this will set the precedent going forward. In the end, I think this is more about the ACC & the B1G than it is Maryland.

 

[Crusty]

They did this to establish venue. My lawyers always had us do this as it is supposedly easier to file suit first and establish venue and then let the other side have the more difficult task of having it moved. Since there is no breach yet, they have asked for a declaratory judgment, which is really all they can do until MD refuses to pay. I notice that it was filed in State Court but I imagine that MD will have it removed to US District Court in Greensboro. It is my understanding that this is somewhat automatic if the dispute involves more than$75,000 and the parties are in different states.

They obviously would like to get a favorable ruling from a friendly court and then let MD try to get it overturned. Since this will be an issue of facts and well within the powers of the judge, MD might have a difficult time getting it overturned on appel.

Would love to hear from the trial lawyers out there.

 

[Toga]

We want our $50M biotches

 

[Moontan]

Interesting note in that originally linked article:

"The complaint alleges Maryland President Wallace Loh proposed raising the exit fee in 2011 before voting against the increase at the beginning of this fall."

 

[PeteCalvin]

It's not solidarity, it's business. Every school right now is more interested in keeping a facade going in public while it scrambles behind the scenes to prepare for every possible scenario. People are reaching to imply this is a sign that everyone is committed. The real sign of commitment would have been to sign the grant of rights agreement but several reports have that being floated yesterday to no avail.

Maybe the ACC schools aren't at each others throats as you seem to wish they are? Maybe they are stronger and more committed than anyone thinks? Maybe your doomsday rhetoric means you need to lay off the sauce and stop spewing your negativity disguised as "realism"? Every one of your posts has been anti-ACC.

Maryland is screwed and will have to pay the piper before exiting stage left.

 

[Moontan]

I think their 'no' vote on the $50 mil increase could be construed as notice/intention...

No it doesn't, it just indicates that they didn't agree with the increase.

If they wanted to give notice they would have said so... "If the conference moves forward with this vote, the University of Maryland hereby indicates its intent to leave the ACC within XX months and will abide by the conference exit rules in place prior to the vote."

 

[Crusty]

The no vote probably won't amount to a hill of beans. If that is the best MD can come up with it is an indication that they have not much to say. Notice is notice not a hint or a "you should have understood what I meant."

 

[Alsacs]

It's not solidarity, it's business. Every school right now is more interested in keeping a facade going in public while it scrambles behind the scenes to prepare for every possible scenario. People are reaching to imply this is a sign that everyone is committed. The real sign of commitment would have been to sign the grant of rights agreement but several reports have that being floated yesterday to no avail.

I call 100% BS on you what you are saying is pure Delany spin. UVA would be stupid to sign on to this lawsuit if they planned on jumping since they would want precedent NOT to pay 50 million. You can't have it both ways.

 

[omniorange]

They did this to establish venue. My lawyers always had us do this as it is supposedly easier to file suit first and establish venue and then let the other side have the more difficult task of having it moved. Since there is no breach yet, they have asked for a declaratory judgment, which is really all they can do until MD refuses to pay. I notice that it was filed in State Court but I imagine that MD will have it removed to US District Court in Greensboro. It is my understanding that this is somewhat automatic if the dispute involves more than$75,000 and the parties are in different states.

They obviously would like to get a favorable ruling from a friendly court and then let MD try to get it overturned. Since this will be an issue of facts and well within the powers of the judge, MD might have a difficult time getting it overturned on appel.

Would love to hear from the trial lawyers out there.

Yep, establish venue but also I think as a reason to start withholding conference paychecks to Maryland in December.

Since Maryland has given every indication they plan on fighting this, I'm sure the ACC will withhold all future conference payments for the remainder of 2012-13 and all of 2013-14 until this matter is decided in the courts.

Cheers,
Neil

 

[Crusty]

Yep, establish venue but also I think as a reason to start withholding conference paychecks to Maryland in December.

Since Maryland has given every indication they plan on fighting this, I'm sure the ACC will withhold all future conference payments for the remainder of 2012-13 and all of 2013-14 until this matter is decided in the courts.

Cheers,
Neil

I would think that any self-help action like not paying MD would not be wise. Don't want to strengthen their hand in any way.

 

[OttoinGrotto]

 

[JOC44]

Yes, Maryland will remove this case to federal court unless the ACC constitution has a venue provision that calls for suits to be litigated in North Carolina state court (which I find highly unlikely).

I can't think of a reason why the exit fee would be unenforceable. Maryland might argue that it is unconscionable but that's a doctrine rarely applied and Loh's proposal to raise the exit fee a year earlier doesn't exactly help Maryland's case.

Are we sure that SU gets to share in the benefit of any exit payment from Maryland? We aren't currently a member of the ACC. If Maryland paid now, why wouldn't the ACC just make pro rata distributions to all current members and be done with it?

 

[Moontan]

I would think that any self-help action like not paying MD would not be wise. Don't want to strengthen their hand in any way.

The conference bylaws may already indicate such a process. I believe something similar is being used to by the NBE to handle the last $5M payments from Syracuse and Pitt.