IN RE: Professional Basketball Antitrust Litigation

Case MDL No. 102 Document 2 Filed 05/12/15 Page 1 of 5
on pt: BEFORE THE JUDICIAL PANEL "ijl os,
oN CT
® MULTIDISTRICT LITIGATION edn Hay
IN RE PROFESSIONAL BASKETBALL ) Par 197,
ANTITRUST LITIGATION ) DOCKER;	NO: 102
OPINION AND ORDER gd
BEFORE ALFRED P. MURRAH, CHAIRMAN, JOHN MINOR WISDOM*, EDWARD
WEINFELD, EDWIN A. ROBSON, WILLIAM H. BECKER, JOSEPH S. LORD,
III*, AND STANLEY A. WEIGEL, JUDGES OF THE PANEL
PER CURIAM
James McDaniels and the Seattle Supersonics of the
National Basketball Association (NBA), plaintiffs in two
actions filed in the Western District of Washington, have
moved the Panel to transfer eight cases for coordinated or
consolidated pretrial proceedings. Five of these cases
[ involve the professional basketball contractual arrangements	\_ :
of McDaniels, who formerly played for the Carolina Cougars
of the American Basketball Association (ABA), and now plays
for the Seattle Supersonics in the NBA. The other three
cases are antitrust actions filed by the ABA against the
NBA. On the basis of the papers filed and the arguments
presented at the hearing, we find that transfer of these
actions is premature at this time and, therefore, deny the
notion without prejudice to the right of the parties to seek
transfer at a later time or of the Panel to consider transfer
1/
at a later time on its own initiative.
* Although Judges Wisdom and Lord were not present at the
hearing, they have, with the consent of all parties, partici-
<P pated in this decision.	1/ At the hearing the Panel requested all counsel to inform
the Clerk of the Panel of any existing or future litigation
involving professional basketball not included in this motion.

Case MDL No. 102 Document2 Filed 05/12/15 Page	2 of 5
. —o-
® In February 1972 McDaniels allegedly repudiated his con-
tract to play for the Carolina Cougars (Carolina) of the ABA
and signed a contract and began playing for the Seattle
Supersonics (Seattle) of the NBA. Carolina filed an action in
a North Carolina state court seeking injunctive relief restrain-
ing McDaniels from playing for any team other than Carolina.
This action was subsequently removed to the Middle District of
North Carolina and assigned to Judge Eugene A. gordon. ¥ Carolina
also filed a tort action in the Central District of California
against McDaniels' agent, Al Ross, and his company, All-Pro
Management,	for alleged interference in the contractual relation-
ship between Carolina and McDaniels.
® Shortly after the filing of the Carolina lawsuit againstA McDaniels, MéDaniels and Seattle filed an action in state court
in Washington seeking a rescission of McDaniels' prior contrac-
tual obligations with Carolina and other relief that would allow
him to play for Seattle. This action was removed to the Western
District of Washington and consolidated with another action
filed by McDaniels and Seattle in that district against Carolina
and the ABA, alleging violations of the federal antitrust
laws and seeking the same relief as that sought in the Washington
state court action. Subsequent to the filing of the motion with
the Panel, both of the actions pending in the Western District of
Washington were dismissed on grounds of lack of venue and personal
jurisdiction.
® 2/	Judge Gordon has set a July 5, 1972, cutoff date fordiscovery regarding plaintiff's motion for a preliminary
injunction and has tentatively set that motion for hearing
in the latter part of July.

Case MDL No. 102 Document2 Filed 05/12/15 Page	3 of 5
. -3- ’
( The National Collegiate Athletic Association (NCAA) has
filed an action against McDaniels, Carolina and the ABA in the
Western District of Kentucky alleging that the signing of the
contract with Carolina by McDaniels violated NCAA rules for
eligibility. The NCAA asserts a common law claim in tort for
fraudulent misrepresentations arising under the substantive law
of Kentucky.
In the three antitrust suits brought by the ABA against
the NBA, one in the Northern District of Georgia and two in
the Northern District of California, very little, if any,
discovery has been undertaken. It appears that both parties
are awaiting Congressional action on the proposed merger of
the two leagues before proceeding.
® We do not believe that transfer of any of the actions in
this litigation is appropriate at this time. Movants have not
convinced us of the existence of questions of fact common to
these cases. Nor does it appear that the parties or witnesses
will be inconvenienced or that the just and efficient conduct
of the actions will suffer in the absence of transfer under
Section 1407 at this time. 28 U.S.C, §1407(a). We wish to make
clear, however, that this denial of transfer without prejudice
to later applications is not intended to act as a stay of pro-
ceedings in the district courts and we encourage the parties to
proceed with the pretrial preparation of the civil actions
involved.
® IT IS THEREFORE ORDERED that transfer of the actions
listed on the attached Schedule A pursuant to 28 U.S.C. §1407
be, and the same hereby is, DENIED, without prejudice to the

Case MDL No. 102 Document2 Filed 05/12/15 Page	4 of 5
’ -4- : :
® right of any party to move for transfer at a later time or
of the Panel to consider transfer at a later time on its
own initiative.

Case MDL No. 102 Document 2 Filed 05/12/15 Page 5 of 5
® SCHEDULE A DOCKET NO. 102	CENTRAL DISTRICT OF CALIFORNIA
The Carolina Cougars, et al. v. All- Civil Action
Pro Management, Inc., et al. No. 72-345-IH
MIDDLE DISTRICT OF NORTH CAROLINA
The Munchak Corporation, etc. V. Civil Action
James R. McDaniels No. C-51-G-72
NORTHERN DISTRICT OF GEORGIA
The Munchak Corporation, etc. Vv.
The National Basketball Association, Civil Action
et al. No. 16269
NORTHERN DISTRICT OF CALIFORNIA
American Basketball Association, et al.
v. National Basketball Association, Civil Action
et al. No. 51055
American Basketball Association .
v. National Basketball Association, Civil Action
® et al. No. C-72-509-SC
WESTERN DISTRICT OF KENTUCKY
All Members of the National
Collegiate Athletic Association
v. All Members of the American Civil Action
Basketball Association, et al. No. 7225-A