Greco v. Nat'l Football League

• Citation: 116 F.Supp.3d 744
• Decision Date: 21 July 2015
• Docket Number: C.A. No. 3:13–CV–1005–M.
• Parties: Joseph GRECO, Jules Brodsky, Todd J. Christenson, William Dickie, et al., Plaintiffs, v. NATIONAL FOOTBALL LEAGUE, Defendant.
• Court: U.S. District Court — Northern District of Texas

116 F.Supp.3d 744

Joseph GRECO, Jules Brodsky, Todd J. Christenson, William Dickie, et al., Plaintiffs,

v.NATIONAL FOOTBALL LEAGUE, Defendant.

C.A. No. 3:13–CV–1005–M.

United States District Court, N.D. Texas, Dallas Division.

Signed July 21, 2015.

Christopher S. Ayres, Ayres Law Office PC, Addison, TX, Ahmed Ibrahim, Jason M. Frank, Michael J. Avenatti, Eagan Avenatti LLP, Newport Beach, CA, R. Jack Ayres, Jr., Law Offices of R. Jack Ayres Jr., Addison, TX, for Plaintiffs.

R. Thaddeus Behrens, Daniel H. Gold, George W. Bramblett, Jr., Scott Ewing, Haynes & Boone LLP, Dallas, TX, for Defendant.

MEMORANDUM OPINION AND ORDER

BARBARA M.G. LYNN, District Judge.

Before the Court is Defendant's Motion for Partial Judgment on the Pleadings [Dkt. No. 133], Plaintiffs' Motion for Leave to File First Amended Complaint [Dkt. No. 152], and Plaintiffs' Motion for Stay Pending Resolution of the Appeal in the Related Ibe Matter [Dkt. No. 177]. For the reasons stated herein, Defendant's Motion for Partial Judgment on the Pleadings is GRANTED, Plaintiffs' Motion for Leave to File First Amended Complaint is DENIED without prejudice, and Plaintiffs' Motion for Stay Pending Resolution of the Appeal in the Related Ibe Matter is GRANTED.

FACTS AND PROCEDURAL BACKGROUND

This case concerns the temporary seating problems encountered by ticketholders at Super Bowl XLV, which was played at Cowboys Stadium on February 6, 2011. On February 5, 2013, Plaintiffs filed their Original Petition in the 160th Judicial District of Dallas County, alleging claims for breach of contract and various tort claims against the National Football League ("NFL") and Jerral "Jerry" Wayne Jones, Dallas Cowboys Football Club, Ltd., JWJ Corporation, Cowboys Stadium, L.P., Cowboys Stadium GP, LLC, and Blue & Silver, Inc. (collectively, "the Cowboys Defendants"). Dkt. No. 1–7. Although the Plaintiffs in this case asserted their claims individually, plaintiffs in the related Simms (now Ibe ) case, represented by the same counsel, were seeking class certification at the time this suit was filed. See Simms v. Jones, 296 F.R.D. 485, 510 (N.D.Tex.2013) (denying class certification).

On March 7, 2013, Defendants removed this matter to this Court, where it has proceeded as an individual mass action on behalf of nearly 200 Plaintiffs. Dkt. No. 1. On August 6, 2014, this Court dismissed Plaintiffs' claims against the Cowboys Defendants, leaving the NFL as the only remaining Defendant. Dkt. No. 92.

The substantial number of Plaintiffs in this case has raised significant logistical and scheduling issues that have caused the Court to discuss extensively with the parties various strategies to resolve the cases. See Dkt. No. 57 (2/25/14 Scheduling Conference); Dkt. No. 66 (6/9/14 Telephone Conference); Dkt. No. 90 (7/16/14 Telephone Conference). Although the parties and the Court have on multiple occasions exchanged dates for the entry of a Scheduling Order, no formal Scheduling Order has been entered in this case, primarily due to a desire to await the outcome of the be trial, in which there were seven plaintiffs and in which judgment was entered on March 25, 2015. See Ibe v. Nat'l Football League, No. 3:11–CV–248–M (N.D. Tex. filed Feb. 8, 2011). The Ibe case is currently pending before the Fifth Circuit Court of Appeals.¹ Id., appeal docketed, No. 15–10242 (5th Cir. Mar. 31, 2015). Nevertheless, the consistent and repeated understanding between the Court and the parties has been that this case will proceed according to bellwether trials, in which forty or so agreed-upon "Discovery Plaintiffs" would have their claims tried first. See Dkt. No. 182, Def. Ex. A, Def.App. 2–12; Def. Ex. B, Def.App. 13–15.

The NFL moves for partial judgment on the pleadings that, as a matter of law, Plaintiffs cannot recover attorneys' fees from the NFL under Section 38.001 of the Texas Civil Practice and Remedies Code. Alternatively, Plaintiffs move for leave to amend their Complaint to join four additional plaintiffs, and as defendants, the individual teams and owners that are members of the NFL along with the NFL Ventures entities that staged Super Bowl XLV. Finally, Plaintiffs move to stay this case pending the resolution of the appeal of the Ibe case.

ATTORNEYS' FEES

The NFL moves for partial judgment on the pleadings under Rule 12(c), arguing that Plaintiffs cannot, as a matter of law, recover attorneys' fees for their breach of contract claims under Section 38.001 of the Texas Civil Practice and Remedies Code.

I. Legal Standard

Federal Rule of Civil Procedure 12(c) allows a party to move for judgment on the pleadings "[a]fter the pleadings are closed—but early enough not to delay trial...."² Fed.R.Civ.P. 12(c). Judgment on the pleadings is proper when "material facts are not in dispute and judgment on the merits can be rendered by looking to the substance of the pleadings and any judicially noticed facts." Hebert Abstract Co. v. Touchstone Props., Ltd., 914 F.2d 74, 76 (5th Cir.1990).

II. Analysis

Under the so-called American Rule, parties are required to bear their own attorneys' fees "absent explicit statutory authority" to the contrary. Buckhannon Bd. & Care Home, Inc. v. West Virginia Dept. of Health and Human Res., 532 U.S. 598, 602, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001). Whether a party may recover attorneys' fees under a statute is a question of law for the Court. Walker Int'l Holdings, Ltd. v. Republic of Congo, 415 F.3d 413, 416 (5th Cir.2005). Where federal jurisdiction is based on diversity, state law controls the award of attorneys' fees.

Mid–Continent Casualty Co. v. Chevron Pipe Line Co., 205 F.3d 222, 230 (5th Cir.2000).

When applying Texas law, federal courts within the Fifth Circuit look to the Supreme Court of Texas for guidance. Citigroup Inc. v. Fed. Ins. Co., 649 F.3d 367, 371 (5th Cir.2011). In the absence of a binding decision from the Supreme Court of Texas, this Court may look to decisions of intermediate state appellate courts for guidance; however, those decisions are not controlling, and this Court must ultimately make a judgment as to how the Supreme Court of Texas would rule on the issue. United Teacher Assocs. Ins. Co. v. Union Labor Life Ins. Co., 414 F.3d 558, 565–66 (5th Cir.2005).

Under Texas law, a litigant can recover attorneys' fees "only if specifically provided for by statute or contract." Epps v. Fowler, 351 S.W.3d 862, 865 (Tex.2011) (citing Intercontinental Grp. P'ship v. KB Home Lone Start L.P., 295 S.W.3d 650, 653 (Tex.2009) ). Here, the Super Bowl ticket contract involved did not contain an attorneys' fees provision, so Plaintiffs must seek attorneys' fees under § 38.001 of the Texas Civil Practice and Remedies Code. See Def. Ex. 1 (Super Bowl XLV Ticket); Dkt. No. 1 ¶ 11 (Pls. Third Amended Class Action Complaint).

Section 38.001 states "[a] person may recover reasonable attorneys' fees from an individual or corporation, in addition to the amount of a valid claim and costs if the claim is for ... an oral or written contract." Tex. Civ. Prac. & Rem.Code § 38.001(8) (emphasis added). In other words, in a suit for breach of contract, a "person" may only recover attorneys' fees from "an individual or corporation." Id. Therefore, the issue before this Court is whether Section 38.001 allows Plaintiffs to recover attorneys' fees from the NFL, which is an unincorporated association.

When construing a Texas statute, the Fifth Circuit abides by the same rules of statutory construction applied by Texas courts. Wright v. Ford Motor Co., 508 F.3d 263, 269 (5th Cir.2007). "[I]t is a cardinal rule in Texas that a court construes a statute, ‘first by looking to the plain and common meaning of the statute's words.’ " Fitzgerald v. Advanced Spine Fixation Sys., Inc., 996 S.W.2d 864, 865 (Tex.1999) (quoting Liberty Mut. Ins. Co. v. Garrison Contractors, 966 S.W.2d 482, 484 (Tex.1998) ). According to Texas courts, "[i]f the statutory language is unambiguous, the judge's inquiry is at an end." Gonzalez v. Guilbot, 315 S.W.3d 533, 540 (Tex.2010). Clear text is assumed to be determinative of legislative intent. Entergy Gulf States, Inc. v. Summers, 282 S.W.3d 433, 437 (Tex.2009).

The Supreme Court of Texas has succinctly explained the reasoning behind its focus on plain language:

There are sound reasons we begin with the plain language of a statute before resorting to the rules of construction. For one, it is a fair assumption that the Legislature tries to say what it means, and therefore the words it chooses should be the surest guide to legislative intent. Also, ordinary citizens should be able to rely on the plain language of a statute to mean what it says. Moreover, when we stray from the plain language of a statute, we risk encroaching on the Legislature's function to decide what the law should be. Wright, 508 F.3d at 270 (quoting Fitzgerald, 996 S.W.2d at 866 ).

The NFL argues that it is not an "individual" because it is not a "human being," and that, as an unincorporated association, it is clearly not a "corporation." Dkt. No. 133 at 6 (citing City of Corinth v. NuRock Dev., Inc., 293 S.W.3d 360, 370 (Tex.App.-Fort Worth 2009, no pet.) ; Pls. Orig. Pet. ¶ 2.8). Thus, the NFL urges that the plain language of Section 38.001 precludes Plaintiffs from recovering attorneys' fees from the NFL.

Plaintiffs respond that the terms "individual" and "corporation" in Section 38.001 are ambiguous, because neither the Civil Practice and Remedies Code nor the Texas Code Construction Act define "individual" or "corporation." Dkt. No. 137 at 6 (Pls.Resp.). Plaintiffs also argue that there is no authoritative definition of "individual" that requires this Court to conclude that "individual" refers only to a human being, and that "corporation" can also be interpreted very broadly. Id. at 7. Thus, Plaintiffs argue that this Court should look to legislative intent to determine the meaning of "individual or corporation." Id. at 6.

Plaintiffs rightly note that the cardinal rule of statutory...