By
Jeff BarkerThe Baltimore Sun
2:16 p.m. EDT, June 28, 2013
A Prince George's County Circuit Court judge dismissed a small portion of Maryland’s suit against the Atlantic Coast Conference on Friday and put the rest on hold pending the resolution of a case in North Carolina.
Both suits are part of a legal tangle that ensued after Maryland -- one of the ACC’s original members -- announced in November 2012 that it was departing for the Big Ten, effective in July 2014.
Friday’s decision by Judge John Paul Davey was a victory for the ACC, but not a complete one. Davey accepted the ACC’s argument that the two cases should not proceed simultaneously because they were too similar to be treated independently.
But the judge left intact most of Maryland’s lawsuit that the ACC had hoped to dismiss.
The ACC struck first last November, asking a North Carolina court to declare that Maryland is subject to the full exit fee -- $52,266,342 – for announcing it was leaving the conference. Resolution of that suit is still in the early stages in Superior Court for Guilford County.
Maryland countered with its own suit alleging that the exit fee is anti-competitive and should not be enforced.
Maryland’s suit also said the ACC is improperly withholding shared conference revenues from the school. In December, the conference withheld a distribution of about $3 million owed to Maryland as what it called an "offset" against the exit fee.
The ACC argued last month that Maryland’s suit should be dismissed.
But Davey left three of Maryland’s four counts intact, dismissing only a count in which Maryland alleged its economic and competitive standing was harmed by leaving the ACC. The judge said Maryland had publicly declared that it gained financially from joining the Big Ten.
Davey stayed the rest of Maryland’s suit pending the outcome of the North Carolina case, in which preliminary motions have been filed.
“The decision of the North Carolina Court and the decision by this Court could be similar to one another, could directly compete with one another, and/or could leave unresolved issues,” the judge said in a 36-page opinion.
“Permitting both matters to proceed simultaneously plainly risks inconsistent and/or competing determinations of fact and law, an outcome this Court seeks to avoid,” his opinion said.
Reaction from Maryland and the ACC is expected later today.
Read more:
http://www.baltimoresun.com/sports/terps/tracking-the-terps/bal-judge-dismisses-part-of-maryland-lawsuit-against-the-acc-20130628,0,7932085.story#ixzz2XXmSpAJd