Kneeland v. National Collegiate Athletic Ass'n
| Citation | 650 F. Supp. 1064 |
| Decision Date | 18 August 1986 |
| Docket Number | Civ. No. A-85-CA-616. |
| Parties | Carole KNEELAND, Belo Broadcasting Corporation, the Times Herald Printing Company, David Eden and A.H. Belo Corporation d/b/a Belo Corporation News v. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION and Southwest Athletic Conference. |
| Court | U.S. District Court — Western District of Texas |
Jack Balagia, Jr., James R. Raup, McGinnis, Lochridge & Kilgore, Austin, Tex., for plaintiffs Carole Kneeland and Belo Broadcasting Corp.
William D. Sims, Paul C. Watler, Jenkens & Gilchrist, Dallas, Tex., for plaintiff-intervenor A.H. Belo Corp. d/b/a The Dallas Morning News.
Frank C. Vecella, Charles L. Babcock, Michael Knapek, Jackson, Walker, Winstead, Cantwell & Miller, Dallas, Tex., for plaintiffs-intervenors the Times Herald Printing Co. and David Eden.
Robert M. Roller, Graves, Dougherty, Hearon & Moody, Austin, Tex., for defendant Nat. Collegiate Athletic Ass'n.
Robert F. Middleton, Baker, Smith & Mills, Dallas, Tex., for defendant Southwest Athletic Conference.
The above-styled and numbered cause came before the Court on July 24, 1986 for a non-jury trial.
This action was originally filed in state court on October 3, 1985, and removed to this Court by both Defendants on October 25, 1985. After a pre-trial conference held on February 6, 1986, the Court granted Defendant NCAA's Motion for Separate Trial on the issue of whether Defendants were governmental bodies as defined by the Act and the Plaintiffs' claims brought under 42 U.S.C. § 1983. A non-jury trial was held on March 6 and 7, 1986. On May 15, 1986, 650 F.Supp. 1047 the Court entered a Memorandum Opinion and Order which denied the Plaintiffs' section 1983 claims, determined that both Defendants are governmental bodies within the meaning of the Act, and that the information sought by Plaintiffs is public information within the meaning of the Act. The Order directed that the Defendants produce the information sought by Plaintiffs to the Court for an in camera inspection within twenty days from the date of the Order so that the Court could determine whether any exemptions listed under section 3 of the Act prevented disclosure of the information sought. The Court further required that the Defendants file briefs concerning any exceptions to disclosure available under the Act.
On May 22, 1986 the Defendants filed a Joint Motion to Amend the Court's Order and to Certify an Immediate Appeal to the Circuit Court. On May 30, 1986 the Defendants filed a Motion for Additional Time to Comply with the Court's Order. On June 2, 1986 the Southwest Conference filed a Motion to Vacate the Court's Opinion and Dismiss the Pendent Claims, or in the Alternative, to Remand. On June 3, 1986 the Defendants moved for return of the documents following in camera inspection and for conditional stay. The Court granted the Defendants' Motion for Extension of Time and ordered that the documents in issue be submitted to the Court on or before Friday, June 20, 1986 at 5:00 p.m. On June 16, 1986 the Court entered an order which denied the Defendants' Motion to Amend and to Certify an Immediate Appeal and for Stay. On that same day the NCAA filed its Notice of Appeal of the Court's Order of May 16, 1986. June 17, 1986 saw a great deal of activity in this case. The Court denied Defendant Southwest Athletic Conference's Motion to Vacate Opinion and Dismiss Pendent Claims, or in the Alternative, to Remand. In that Order, the Court noted that following removal of this cause neither Defendant had moved to dismiss the section 1983 claim and remand the state claims. Further, the Order noted that at the trial conducted by the Court the Defendants conceded that this Court had pendent jurisdiction over the Plaintiffs' state law claims. The Court also entered an order which denied the Defendants' Motion for Return of Documents following in camera inspection, but granted the motion insofar as it sought protection of the documents pending any appeal of this Court's final order. Finally, the Court scheduled trial of any remaining issues in this case for Thursday, July 24, 1986. On that same day, June 17, 1986, the NCAA moved to stay proceedings in this action pending a decision on a petition for writ of mandamus which they had filed in the United States Court of Appeals for the Fifth Circuit. On June 19, 1986 the United States Court of Appeals for the Fifth Circuit denied the Defendant's petition; therefore, the Court denied the Motion to stay these proceedings as moot.
Pursuant to the Court's scheduling order of June 17, 1986, the parties, with the exception of the SWC, timely filed briefs concerning the remaining issues in this case. The SWC did not submit a brief to the Court.
The NCAA asserts some thirty-six (36) defenses in its amended answers. The SWC asserted six (6) affirmative defenses in its amended answer, all of which are also asserted by the NCAA. The NCAA's brief on the remaining issues argues the following five (5) specific defenses:
The NCAA devotes a majority of its argument to allegations that application of the Act violates specific provisions of the United States and Texas Constitutions. Basically, the NCAA asserts three arguments in support of their contentions: First, extraterritorial application of the Act is an unconstitutional infringement by the State of Texas on the private affairs of a Kansas organization; second, the Act provides for an unconstitutional taking of the NCAA's property for private purposes; and, third, the Act infringes the NCAA's fundamental rights of privacy, association and academic freedom without furthering any compelling state interests.
On May 15, 1986, this Court ruled that the Act was intended to have extraterritorial effect, and that the Act applies to the NCAA. Nevertheless, the NCAA now argues that application of the Act to the NCAA is unconstitutional. In support of its position that the Texas Legislature cannot constitutionally regulate the affairs of a foreign association, the NCAA cites Austin Building Co. v. National Union Fire Insurance Co., 432 S.W.2d 697 (Tex.1968). In Austin Building, the Plaintiff, a Texas corporation, sued the Defendant insurance company for damages sustained in a fire in Kansas. The issue before the Court was one of choice of law. The Court found that the insurance contract in issue was made in Kansas with a Kansas citizen, would be performed in Kansas, related to property located in Kansas, and that the parties intended that Kansas law would apply. Therefore, the Court held that Kansas law would control interpretation of the contract under the doctrine of lex loci. Id. at 701. In the instant case the statute in issue does not attempt to regulate contracts, but rather ensures public access to information concerning the affairs of government and the expenditure or use of State funds. Further, the NCAA has had significant, indeed the most significant, contacts with the State of Texas. The NCAA consistently enters Texas to conduct its business. It has conducted numerous investigations within the State of Texas, often employing Texas residents to conduct such investigations. The documents and information sought by Plaintiffs and Intervenors admittedly came to light pursuant to investigations conducted within the State by NCAA representatives. Finally, and most important, the NCAA receives and expends public funds of the State of Texas. These facts distinguish and render inapposite Austin Building Co. v. National Union Fire Insurance Co., Id. The Act was intended to have extraterritorial effect in pursuit of the clear and legitimate public policy stated in the Act.
If, as interpreted by Plaintiff, the NCAA argues that the full faith and credit clause of the United States Constitution bars extraterritorial application, the Court would note that the clause does not require application of another state's law in violation of Texas' own legitimate public policy. Nevada v. Hall, 440 U.S. 410, 422, 99 S.Ct. 1182, 1189, 59 L.Ed.2d 416 (1979); Pacific Employers Insurance Co. v. Industrial Accident Commission, 306 U.S. 493, 501-02, 59 S.Ct. 629, 632-33, 83 L.Ed. 940 (1939); Garcia v. Total Oilfield Services, Inc., 703 S.W.2d 411, 414-15 (Tex.App. — Amarillo 1986, writ ref'd n.r.e.). If the NCAA argues that the full faith and credit clause demands application of Kansas law, it "assumes the burden of showing, upon some rational basis, that the conflicting interests ... of the foreign state are superior to those of the forum." Alaska Packers Association v. Industrial Accident Commission, 294 U.S. 532, 547-48, 55 S.Ct. 518, 523-24, 79 L.Ed. 1044 (1935). When the public interest of the forum state in the persons, property or events subject in the litigation outweigh the interests of the foreign state, there is no denial of full faith and credit. Id. In this case the NCAA has not even attempted to meet this burden. This litigation involves Texas residents, Texas state universities and student athletes, and a legitimate Texas public policy. These factors clearly outweigh any policy Kansas might have to protect associations which do extensive business in Texas and receive and expend Texas public funds. Accordingly, the Court is of the opinion that extraterritorial application of the Act is constitutional.
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Kneeland v. National Collegiate Athletic Ass'n
...Act. On July 24, 1986, the remaining issues and defenses were tried to the Court. In a Memorandum Opinion and Order filed on August 18, 1986, 650 F.Supp. 1064, the Court overruled the defenses asserted by Defendants. The final task before the Court is to determine whether any of the excepti......
- Kneeland v. National Collegiate Athletic Ass'n, 86-1825