116 F. Supp. 3d 744
N.D. Tex.2015Background
- Plaintiffs allege breach of contract and tort claims arising from seating problems at Super Bowl XLV against the NFL and Cowboys Defendants.
- The Cowboys Defendants were dismissed in 2014, leaving the NFL as the remaining defendant.
- Plaintiffs seek attorneys’ fees under Texas § 38.001, which requires fee recoverability from an 'individual or corporation' in contract cases.
- NFL moves for partial judgment on the pleadings arguing § 38.001 cannot reach the NFL because it is an unincorporated association, not a 'human' or a 'corporation'.
- Plaintiffs seek to amend to join NFL Ventures and NFL team owners; the Court stayed related proceedings pending appeal in Ibe.
- Court addresses whether amendment should be granted and whether a stay is appropriate, given overlap with the Ibe case.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 38.001 allows fees from the NFL | Plaintiffs contend 'individual' includes nonhumans; broad interpretation supports recovery. | NFL argues 'individual or corporation' excludes unincorporated associations like the NFL. | Plain language excludes unincorporated associations; fee recovery against NFL denied. |
| Whether 'individual' or 'corporation' includes unincorporated associations under § 38.001 | Statutory terms ambiguous; legislative intent supports broader reading. | Words have plain meaning; unincorporated associations not included. | Plain meaning governs; unincorporated associations are not within § 38.001. |
| Whether NFL Ventures and NFL team owners should be joined | Joinder necessary to hold all responsible entities; claims potentially relate to the contract. | Joining would be futile or prejudicial; NFL Ventures not a party to the contract. | Joinder denied without prejudice for owners; stay allows potential later amendment; NFL Ventures can be joined with stay. |
| Whether TUUNAA shields NFL team owners from liability | Owners should be liable as members of the NFL; TUUNAA may not bar liability. | Members of unincorporated nonprofit associations are shielded; TUUNAA applies. | TUUNAA issues unresolved; amendment denied without prejudice; remains to be refiled after stay. |
| Whether a stay pending appeal is appropriate | Staying saves resources given overlap with Ibe and pending Fifth Circuit decision. | Stay may be unnecessary if Ibe rulings are affirmed; risk of stale testimony. | Stay granted pending Ibe appeal; bellwether and related joinder proceedings stayed except agreed four-plaintiff joiner. |
Key Cases Cited
- Hebert Abstract Co. v. Touchstone Props., Ltd., 914 F.2d 74 (5th Cir.1990) (standard for judgment on the pleadings)
- Buckhannon Bd. & Care Home, Inc. v. West Virginia Dept. of Health and Human Res., 532 U.S. 598 (U.S. 2001) (American Rule on attorney’s fees)
- Wright v. Ford Motor Co., 508 F.3d 263 (5th Cir.2007) (statutory interpretation guidance; plain language approach)
- Fleming Foods of Tex., Inc. v. Rylander, 6 S.W.3d 278 (Tex.1999) (recodification may change prior law; plain language controls)
- Ganz v. Lyons P’ship, L.P., 173 F.R.D. 173 (N.D. Tex.1997) (undefined terms given ordinary meaning; unincorporated entities)
- MT Falkin Investments v. Chisholm Trail Elks Lodge No. 2659, 400 S.W.3d 658 (Tex.App.-Austin 2013) (TUUNAA abrogates common-law member liability in unincorporated associations)
- Edberg v. Laurel Canyon Ranch Architectural Review Comm., 2009 WL 1089432 (Tex.App.-San Antonio 2009) (TUUNAA applications for nonprofit unincorporated associations)