Gardella v. Chandler

• Citation: 79 F. Supp. 260
• Parties: GARDELLA v. CHANDLER et al.
• Decision Date: 13 July 1948
• Court: U.S. District Court — Southern District of New York

79 F. Supp. 260

GARDELLA v. CHANDLER et al.

District Court, S. D. New York.

July 13, 1948.

Frederic A. Johnson, of New York City, for plaintiff.

Baker, Hostetler & Patterson, of Cleveland, Ohio, for defendant William Harridge, individually and as President of The American League of Professional Baseball Clubs.

Hedges, Hoover & Tingley, of Columbus, Ohio for defendant George M. Trautman, individually and as President of The National Ass'n of Professional Baseball Leagues.

Edgar P. Feeley, of New York City, for defendant National Exhibition Co.

Willkie, Owen, Farr, Gallagher & Walton, of New York City, for other defendants.

GODDARD, District Judge.

This is a motion to dismiss the action for failure to state a claim upon which relief can be granted and for want of jurisdiction over the subject matter of the action, for lack of diversity of citizenship of the parties.

The plaintiff was employed as a baseball player in the 1944 and 1945 season by National Exhibition Company, the owner of the New York Giants. The defendants are Albert B. Chandler, individually and as Commissioner of Baseball, Ford C. Frick, individually and as President of the National League of Professional Baseball Clubs, an unincorporated voluntary association, William Harridge, individually and as President of the American League of Professional Baseball Clubs, a voluntary unincorporated association, George M. Trautman, individually and as President of the National Association of Professional Baseball Leagues, a voluntary unincorporated association, and National Exhibition Company, owner of the New York Giants of the National League.

Plaintiff is a resident of New York. The residence and citizenship of the defendants are not alleged, except that defendant, National Exhibition Company, is alleged to be a New York Corporation, with its principal office and place of business in New York City.

The complaint seeks to recover treble damages under various sections of the Sherman and Clayton Anti-Trust Acts, 15 U.S.C.A. §§ 1, 2, 3, 13 and 14, and is based solely on alleged violations of these sections of the anti-trust Act and contains three causes of action.

In his First cause of action the plaintiff in substance alleges that these defendants have entered into a conspiracy in restraint of trade in violation of Section 1 of the Sherman Act. It further alleges that after the National and the American Leagues were organized, these two leagues on February 3, 1945 entered into a new agreement called the Major League Agreement. This agreement created the office of Commissioner of Baseball, which post is now and the times referred to held by defendant, Chandler; that the Major League Agreement was intended to vest and did vest in the Commissioner disciplinary power over all players and officials in Major League Baseball; that subsequently on December 7, 1946 the National League and the American League entered into an agreement with the National Association of Baseball League the Minor Leagues whereby the Minor Leagues recognized the office and power of the Commissioner as it exists under the Major League Agreement; the Major League Agreement and the Major-Minor Leagues Agreement and the rules adopted in accordance therewith forbid any other than a standard or uniform contract to be entered into between club and player; this standard form contract contains a provision herinafter referred to as the "reserve clause" whereby the player in signing his contract for the ensuing season or seasons agrees not to sign a contract with or play for any club at the expiration of the period of the contract, other than with or for the club or its assignee, which employs him; this contract also subjects the parties to the interrelated agreements as to the disciplinary power of the Commissioner; the plaintiff then alleges the various grades of leagues and sets forth the teams and their owners comprising the National League and alleges that each of these teams have a home field in the city they represent; that each engage in schedule games for which they charge an admission price; that each club plays seventy-seven games at home and eleven games on the home grounds of its rivals; that in travelling from state to state each club causes to be transported at its own expense the necessary equipment to play the games. The complaint further states that the National League receives part of the proceeds of each game as do the two contesting teams; that in order to complete the schedule state lines are regularly and systematically crossed; that radio broadcasts of the game are given and this right to broadcast the game is a valuable right which the clubs sell to various manufacturers for the purpose of advertising their products; that a baseball club can be and is used as a means of advertising by manufacturers; that with the exception that the Washington team of the American League is in the District of Columbia, the American League and its teams operate the same as the National League teams; that there exists an "All Star" game and "World Series", for which broadcast and television rights are sold for substantial amounts; that radio, television, newspaper publicity and other avenues of communication, as well as the necessary purchase of equipment by the Leagues and Clubs, cause them to be engaged in interstate commerce; that the Minor League Clubs of the...