A North Carolina judge on Thursday denied Florida State's request to dismiss the Atlantic Coast Conference's lawsuit against the school, which is suing to withdraw from the league in its home state.
A little less than two weeks after the hearing in Mecklenburg County, Judge Louis A. Bledsoe III ruled that the ACC had fully argued in its lawsuit against Florida State in December that it had followed conference procedures and that the league The state of North Carolina, the home state of , is the proper jurisdiction for any dispute.
“We are pleased with today's decision, which confirms that North Carolina courts are the appropriate venue to enforce the ACC agreement and bylaws,” the conference said in a statement. “We will continue to act in the best interests of our league members and see this process through to protect and advance the ACC.”
A hearing in FSU's lawsuit against ACC is scheduled for Tuesday in Leon County, Florida, but Florida law generally provides that when there are competing lawsuits in multiple states, the first to file takes precedence. become.
“While it is highly unusual for a court to dismiss a lawsuit at this early stage, we regret the court's decision not to dismiss North Carolina's lawsuit,” Florida said in a statement.
Bledsoe granted Florida State's motion to dismiss the ACC's claim that suing the conference was a breach of its fiduciary duty to the league, but that the school maintained “good faith and fair dealing under the ACC Constitution.” The conference maintained that it breached its obligations. and the articles of incorporation. ”
Florida State is challenging the ACC's exit fee and the validity of an agreement known as a vesting that binds league members together through media rights. The ACC's contract with ESPN expires in 2036. The deal lags far behind the value of contracts signed by the Big Ten Conference and Southeastern Conference.
Florida State claims it would cost $572 million to get out of the conference. The school says its athletics department is at risk of not being able to compete with schools in the Big Ten and SEC because of growing income inequality.
Clemson recently filed a lawsuit similar to Florida's against South Carolina's ACC.
The ACC claims both schools are violating their contracts with the conferences by filing the lawsuit.
The day before the Florida Board of Regents approved filing a lawsuit against ACC at a public meeting Dec. 22, the conference filed a lawsuit against the school in North Carolina.
Florida argued that the conference did not have the right to sue preemptively and did not have the three-quarters approval needed to sue.
Bledsoe said the conference had the right to act to address the clear threat of litigation, saying FSU's action was “inevitable and virtually certain” and that the ACC office has been in place for 70 years. He said he would do it in North Carolina, where he is located. The ACC recently moved to Charlotte after decades in Greensboro.
“The court further concluded that the nature of the case and the applicable law strongly favor proceeding in this matter in North Carolina. and North Carolina law applies,” Bledsoe wrote in his 76-page decision.
