Reggie WHITE; Michael Buck; Hardy Nickerson; Vann McElroy; Dave Duerson, Plaintiffs-Appellants v. NATIONAL FOOTBALL LEAGUE; The Five Smiths; Buffalo Bills, Inc.; Chicago Bears Football Club, Inc.; Cincinnati Bengals, Inc.; The Dallas Cowboys Football Club, Ltd; PDB Sports, Ltd.; The Detroit Lions, Inc.; The Green Bay Packers, Inc.; Houston Oilers, Inc.; Indianapolis Colts, Inc.; Kansas City Chiefs Football Club, Inc.; The Los Angeles Raiders, Ltd.; Los Angeles Rams Football Company, Inc.; Miami Dolphins, Ltd.; Minnesota Vikings Football Club, Inc.; KMS Patriots Limited Partnership; New York Football Giants, Inc.; New York Jets Football Club, Inc.; B & B Holdings, Inc.; Pittsburgh Steelers Sports, Inc.; The Chargers Football Company; Tampa Bay Area NFL Football Club, Inc.; Pro-Football, Inc.; The Philadelphia Eagles Football Club, Inc.; Cleveland Browns, Inc.; The Seattle Seahawks, Inc.; The New Orleans Saints Limited Partnership; The San Francisco Forty-Niners, Ltd., Defendants-Appellees
Nos. 13-1251, 13-1480
United States Court of Appeals, Eighth Circuit
June 20, 2014
756 F.3d 585
Submitted: Jan. 14, 2014.
Jeffrey L. Kessler, argued, New York, N.Y. (David G. Feher, David L. Greenspan, James W. Quinn, New York, NY, Mark A. Jacobson, Barbara Podlucky Berens, Minneapolis, MN, Michael J. Nelson, Chicago, IL, Andrew S. Tulumello, David Barrett, Washington, DC, Daniel S. Schecter, Los Angeles, CA, on the brief), for Appellants.
Gregg H. Levy, argued, Washington, DC (Daniel J. Connolly, Aaron D. Van Oort, Minneapolis, MN, Benjamin C. Block, Washington, DC, on the brief), for Appellees.
Before RILEY, Chief Judge, WOLLMAN and SHEPHERD, Circuit Judges.
Legendary defensive end Reggie White passed away in 2004, but the class action that bears his name lives on in federal court. In 1993, a class of plaintiffs represented by White settled an antitrust lawsuit with the National Football League (NFL or League) by signing an extensive collective bargaining agreement, the Stipulation and Settlement Agreement (SSA), that governed labor relations between the League and its players for almost two decades. In 2011, the NFL Players’ Association and several law firms authorized to represent NFL players (collectively, the Association) sued the League, asserting that the League had violated the SSA in 2010 by instituting a secret cap on player salaries. The League and the Association settled this lawsuit as well, this time by signing a Stipulation of Dismissal (the Dismissal). The Association now seeks to set aside the Dismissal and reopen its breach-of-SSA claim against the League, on two grounds. First, the Association asserts
I.
The NFL is a league of thirty-two independently owned football teams that operate primarily in the United States. The NFL Players’ Association is a labor union that represents NFL players. This case has its roots in the often turbulent relationship between these two organizations.
This turbulence is largely the product of the League‘s unique legal status as a permissible combination in restraint of trade. See Am. Needle v. Nat‘l Football League, 560 U.S. 183, 203, 130 S.Ct. 2201, 176 L.Ed.2d 947 (2010); see also
Occasionally, the League exploits this deference. In 1963, the League instituted the Rozelle Rule, which provided that when a player‘s contract with one team expired, that player could not sign with a different team unless the acquiring team compensated the player‘s former team, usually by sending that team draft picks. Because teams were reluctant to part with draft picks, bidding over free agents stalled, and player salaries fell. In 1976, this court determined that the Rozelle Rule violated the Sherman Act, see Mackey v. Nat‘l Football League, 543 F.2d 606, 622 (8th Cir.1976), but the League thereafter continued to institute variations of the Rozelle Rule that were upheld in the courts, see Powell v. Nat‘l Football League, 930 F.2d 1293, 1303-04 (8th Cir.1989).
NFL players have historically employed two defense mechanisms in response to the League‘s dominant market position: unionization and litigation. Unionization theoretically levels the playing field between the players and the League by uniting the players under one banner, while litigation keeps the League from overstepping its authority under the Rule of Reason. Because collectively bargained agreements are resistant to antitrust attack, see Brown v. Pro Football, Inc., 50 F.3d 1041, 1048 (D.C.Cir.1995), these defense mechanisms are usually mutually exclusive. Thus, labor relations in the NFL have seesawed between attempts at collective bargaining and flurries of antitrust lawsuits.
In the 1980s, the players’ tactic of choice was unionization. Players went on strike twice during that decade, once in 1982 and again in 1987. The 1982 strike, which lasted for fifty-seven days, earned the
This case began as one such suit. In 1992, Reggie White and four other players sued the League on behalf of all other NFL players, asserting that the League‘s free agency system, the college draft, the League‘s practice of using standard-form contracts, and several other League rules violated the antitrust laws. See White v. Nat‘l Football League, 822 F.Supp. 1389, 1394 (D.Minn.1993). The district court certified a class of plaintiffs consisting of
(i) all players who have been, are now, or will be under contract to play professional football for an NFL club at any time from August 31, 1987 to the date of final approval of the settlement of this action and the determination of any appeal therefrom, and (ii) all college and other football players who, as of August 31, 1987, to the date of final approval of the settlement of this action and the determination of any appeal therefrom, have been, are now, or will be eligible to play football as a rookie for an NFL team.1
See White, 822 F.Supp. at 1395. While the White lawsuit was pend-
The SSA heralded a new era of labor peace between the NFL and its players. Although the SSA was originally set to expire in 1996, the League and Association agreed to extend the SSA four times, in 1996, 2000, 2002, and 2006. Each time, the district court held a conference of the parties and instructed them to provide notice of the amendment to all players under contract with an NFL team at the end of the season in the year the SSA was extended. All new players who entered the NFL after the SSA was signed, even those not part of the original White class, became subject to the rules of the SSA. Likewise, expansion teams who joined the NFL after 1993, such as the Carolina Panthers, were governed by the SSA.
In 2008, the NFL became dissatisfied with the SSA and decided not to extend the agreement. The final year of the SSA became 2010. The SSA mandated that “[t]he Final League Year shall always be an Uncapped Year.” This meant that during the 2010 season, the SSA would impose no limit on the amount of money that teams could pay their players. The players expected that the absence of a salary cap in 2010 would lead to a marked increase in player salaries, but this increase never occurred and salaries remained stable during 2010. The players began to suspect that NFL teams were colluding to avoid bidding wars over free agents that might otherwise result from the lack of a salary cap. On January 10, 2011, the Association filed a complaint with Special Master Stephen Burbank alleging that the League was colluding to suppress competition for free agents during the 2010 season.
The SSA expired on March 11, 2011, with no new agreement in place, leading to a flood of renewed litigation. The NFL owners agreed to “lock out” the players by shutting down all league operations until a new labor agreement could be signed. In response, the players’ union decertified and several players sued the NFL for antitrust violations. See Brady v. NFL, 640 F.3d 785 (8th Cir.2011). The Association‘s collusion suit before Special Master Burbank remained pending during this time.
In August 2011, the League and the Association came to terms on a new collective bargaining agreement. As part of this new agreement, the two sides settled the various lawsuits between them. The League and the Association settled the lawsuit over the alleged secret salary cap by signing the Dismissal under
After the Dismissal was signed, several NFL owners made public statements about the League‘s alleged collusion in 2010. New York Giants owner John Mara, for instance, stated in an interview that the Dallas Cowboys and Washington Redskins acted “in violation of the spirit of the salary cap” by “attempt[ing] to take advantage of a one-year loophole,” referring to the lack of a salary cap in 2010. See Dan Graziano, Mara: Redskins, Cowboys Got Off “Lucky,” ESPN.com (Mar. 25, 2012, 2:35 PM), http://espn.go.com/blog/nfceast/post/_/id/37413/john-mararedskins-cowboys-got-off-lucky. NFL Commissioner Roger Goodell similarly referred to an unofficial salary cap in 2010 at a press conference in March 2012. See Dan Graziano, No Date Set for Cap Penalty Hearings, ESPN.com (Mar. 28, 2012, 2:27 PM), http://espn.go.com/blog/nfceast/post/_/id/
II.
The sole issue on appeal is whether the Dismissal bars the Association‘s claim for collusion during the 2010 season. The Association does not contest that the Dismissal, by its terms, purports to bar this lawsuit. Instead, the Association seeks to circumvent the Dismissal in two ways: first, by asserting its invalidity under
A.
The Association first asserts that the Dismissal is invalid because it purported to settle the claims of a certified class without the court approval required by
The parties in this case stipulated to class certification on February 17, 1993. One day later, the Association filed its second amended complaint, which challenged the NFL‘s “Plan B” free agency system, the college draft, the NFL‘s use of a standard-form player contract, the NFL‘s practice of fixing medical insurance benefits, and the NFL‘s system of preseason pay.
The alleged imposition of a salary cap in 2010 is unrelated to any of these claims. Eighteen years elapsed between the events at issue in White and the NFL‘s alleged collusion in 2010. These two sets of allegations involve different plaintiffs, different defendants, and different conduct. The two are linked peripherally by the SSA, which settled the 1993 claims and gave rise to the 2010 claim, but
The Association argues, nonetheless, that this link is sufficient. According to the Association, because the allegations settled in the Dismissal asserted violation of a class settlement, those allegations were the claims “of a certified class.”
Even crediting the Association‘s argument that the breach of a class settlement may give rise to the claim of a certified class,
Without the conceit that the SSA is a bargained-for result of the White litigation, the rationale for treating it as a class settlement begins to fall apart. When a defendant breaches a class settlement, he vitiates the consideration received by the plaintiffs in exchange for the forfeiture of their legal rights. But when a defendant breaches an independent contract signed with members of the class, the legal rights of the class at issue in the lawsuit are not implicated. The mere fact that a class has suffered a harm, seventeen years after they were certified for purposes of unrelated litigation, does not mean that they may seek redress for that harm as a class.
For the most part, the parties themselves have treated the SSA as if it were a normal contract, not a class settlement.
The only time the parties did invoke
We acknowledge that some specific provisions of the SSA might reasonably be considered elements of a class settlement. Article XII, for example, which provides monetary relief to members of the White class for the NFL‘s alleged antitrust violations prior to 1993, is reasonably characterized as part of a bargain extracted by the White plaintiffs in exchange for the forfeiture of their legal claims against the NFL. But other sections of the SSA, such as the sections governing minimum salaries, franchise player tags, and the salary cap, are unrelated to the White class‘s antitrust claims. We do not believe that, realistically, the whole of the SSA was given to the White class in exchange for the forfeiture of their claims against the League. The SSA was desired by both the League and its players. It put an end to twenty-three different lawsuits, including White, and fundamentally rewrote the NFL‘s labor rules. It governed players and teams who entered the NFL long after White was settled. And it contained provisions that were never challenged or even contemplated by the White plaintiffs.
The section of the SSA at issue in this case, Article XI, is one such provision. Article XI, which mandates that the final League year be uncapped, was inserted into the SSA to give the League an incentive to renew the SSA before the last year of the agreement. This provision does not vindicate any of the claims asserted by the White class; it merely penalizes the League for waiting until the last minute to extend the SSA. Because we do not believe that this provision was truly awarded to the players in exchange for the forfeiture of their legal claims against the NFL, we do not believe that the NFL‘s alleged breach of this provision gave rise to a class claim.
Finally, even if we were to treat the SSA as a bona fide class settlement, we
The Association asserts that the dwindling numbers of the White class are irrelevant. But the burden of showing that class litigation is appropriate generally remains on the plaintiff at all times during litigation. See Marlo v. United Parcel Serv., Inc., 639 F.3d 942, 947-48 (9th Cir.2011); Ezell v. Mobile Housing Bd., 709 F.2d 1376, 1380 (11th Cir.1983). Indeed, so important are the
Thus, because the White class never asserted any of the claims settled in the Dismissal, because these claims did not arise from a bargained-for class settlement, because the parties themselves have never treated the SSA like a class settlement, and because only a handful of the White class members were affected by the Dismissal, we conclude that the failure of the court and the litigants to abide by the class settlement procedures of
B.
The Association next asserts that, even if the Dismissal is valid, the district court erred in prohibiting the Association from seeking relief from the Dismissal under
This is not the first time we have considered this question. In two previous unpublished opinions, we held that a dismissal under
We conclude that our sister circuits have the better of this issue. Specifically, we agree with those circuits that have held that a stipulated dismissal constitutes a “judgment” under
Other Rules, however, explicitly use “judgment” to refer to a settlement between a plaintiff and defendant.
In nearly all relevant respects, an accepted offer of judgment is identical to a stipulated dismissal under
More generally, the concerns that underlie
Our holding should not be read as in any way expressing a view on the merits of the Association‘s
III.
Accordingly, we affirm the district court‘s
