Nevada
Nevada Supreme Court Orders Gruden’s Case Against NFL To Arbitration
Photo by Ethan Miller/Getty Images
In a May 14, 2024 Order, the Supreme Court of the State of Nevada reversed a lower court’s holding that former Las Vegas Raiders head coach Jon Gruden did not have to arbitrate his claims against the NFL and Commissioner Roger Goodell arising out of his October 2021 forced resignation. Gruden now faces the prospects of pursuing an arbitration process ostensibly – but not necessarily – controlled by Goodell.
The District Court Goes For Gruden
Gruden was forced to resign after the revelation of emails in which he engaged in what the NFL described in a legal brief as “racist tropes and misogynistic and homophobic slurs.” At the time, Gruden was in the fourth year of a 10-year, $100 million contract, the largest contract ever for an NFL coach.
Notwithstanding the fact Gruden and the Raiders quickly reached a confidential settlement concerning Gruden’s departure, in November 2021, Gruden sued the NFL and Goodell (but not the Raiders) in the Eighth Judicial District Court in Clark County, Nevada, alleging principally that the defendants had intentionally and tortiously interfered with Gruden’s contract with the Raiders by allegedly leaking the problematic emails.
In January 2022, the NFL filed separate motions to dismiss the case and to compel the matter to arbitration. In its motion to compel, the NFL relied on two provisions of Gruden’s employment agreement. First, Gruden agreed generally to be “bound by the Constitution, Bylaws, and rules and regulations of the NFL.” Based on this provision, the NFL argued that Gruden is bound by Section 8.3(E) of the NFL Constitution, which provides the Commissioner authority to arbitrate a dispute “that in the opinion of the Commissioner constitutes conduct detrimental to the best interests of the League or professional football.” Second, Gruden’s contract contained an arbitration provision requiring that “all matters in dispute between Gruden and [the Raiders], including without limitation any dispute arising from the terms of this Agreement, shall be referred to the NFL Commissioner for binding arbitration, and his decision shall be accepted as final, conclusive, and unappealable.”
On May 26, 2022, the District Court denied both motions ruling from the bench. The court held that the NFL’s first argument on the motion to compel failed because, as pointed out by Gruden, invoking this authority would supposedly require Goodell to predetermine the outcome of the arbitration. Second, the court determined that the NFL’s reliance on the arbitration provision contained in Gruden’s contract was misplaced because it only covered disputes between Gruden and the Raiders, which are not a party to the litigation. The District Court’s opinion was later expanded on in an order written by Gruden’s counsel and signed by the District Court, a process permitted by Nevada’s rules.
The Nevada Supreme Court Reverses
The Nevada Supreme Court, in a 2-1 decision, determined that the District Court made numerous errors in its decision. First, the Court held that Gruden failed to prove that his settlement with the Raiders extinguished the relevant arbitration clauses because he did not offer the settlement agreement as evidence in the case and because arbitration clauses are presumed to survive contract termination. Second, the Court determined that Gruden’s contract incorporated the NFL Constitution by reference because Gruden agreed to be bound by it and because it was available to him. Third, the Court found that Gruden’s claims were within the scope of Section 8.3(e) because “[w]hether judged from the perspective of Gruden’s emails becoming public or the NFL Parties’ alleged leaking of those emails, the conduct-detrimental to the NFL or professional football requirement appears satisfied.” Fourth, the Court rejected Gruden’s argument that the arbitration agreement was procedurally unconscionable, finding that he “was the very definition of a sophisticated party” in negotiating his employment agreement. Fifth, concerning substantive unconscionability, while the Court expressed some concern about Goodell potentially serving as the arbitrator in a matter in which he is a defendant, “it is not clear that Goodell will act as arbitrator.” Moreover, the Court noted, “issues of arbitrator bias are reviewable post-arbitration.” Finally, the Court rejected Gruden’s argument that the arbitration agreement is “illusory” because the NFL can amend it unilaterally, noting that the NFL’s ability to do so is restrained by the implied covenant of good faith and fair dealing inherent in every contract.
For all of these reasons, the Court reversed the District Court’s decision and remanded the case with instructions to grant the NFL’s motion requesting that the case be compelled to arbitration.
Justice Linda Marie Bell, writing in dissent, argued that the arbitration agreement did not apply to Gruden because he is no longer an employee of the Raiders. Additionally, Justice Bell believed that incorporation of the NFL Constitution into Gruden’s contract was procedurally unconscionable because Gruden had no choice but to accept it and, at 447 pages, it dwarfed the terms of Gruden’s 7-page employment agreement.
Gruden’s Call
It will soon be up to Gruden to decide whether to file an arbitration with Goodell pursuant to the provisions of the NFL Constitution. Goodell is unlikely to preside over the arbitration, out of the concern that any decision he makes could then be vacated by a court on the ground of bias. Goodell has historically taken one of three routes in these situations: (1) he designates internal NFL counsel to preside over the matter (often General Counsel Jeff Pash); (2) he designates an outside attorney who formerly worked for the NFL or one of its clubs to be arbitrator (Harold Henderson and Bob Wallace, for example); or (3) in high-profile matters where judicial scrutiny is likely, he designates a respected arbitrator or attorney to serve. The most likely choice would be an attorney or arbitrator with labor and employment expertise and some NFL ties but not so much as to create a strong impression of bias.
The last option is what Goodell chose in 2022 when the NFL appealed an arbitrator’s decision to suspend Cleveland Browns quarterback DeShaun Watson for six games, much less than the 14 games the NFL wanted. Goodell had the right under the collective bargaining to hear the appeal but instead appointed Peter Harvey, a former Attorney General for New Jersey and NFL consultant as arbitrator. The parties settled for an 11-game suspension before any appeal was heard.
Gruden is more than two years into this legal battle and, given his pugnacious reputation, is unlikely to drop the case now. Moreover, given the judicial scrutiny Commissioner Goodell’s involvement has already received, it is more likely that Gruden will be able to have his claims fairly considered by a neutral (or near neutral) party.
California Gov. Gavin Newsom won’t admit it, but a move by President Donald Trump is especially helpful to drivers in California — and Nevada.
Gasoline prices are pressuring consumers around the country. On Friday, the average U.S. price was $4.55 a gallon. In California, that would be a bargain. The average there was $6.16 a gallon. Nevada’s average was $5.23 a gallon, the result of around 88 percent of the state’s gasoline coming from California.
It might be getting worse — regardless of what happens in Iran.
In recent months, two major California refineries have shut down. That represented a 17 percent reduction in California’s refining capacity. Their closures weren’t caused by the Iran war, but by Gov. Newsom and California’s relentless attacks on fossil fuels.
To make up for the fuel it won’t extract or refine in-state, California depends on imports from foreign countries.
“We are importing 30 percent of our crude oil from the Middle East,” Mike Ariza, a former control board supervisor at the Valero Benicia Refinery, said in an interview. He has been warning the public about California’s potential fuel shortage. “There are not very many ships left on the way that have fuel,” he said last month.
Last week, KCRA-TV in Sacramento reported that “about 2 million barrels of oil are in the process of being unloaded in Long Beach off of the last California-bound tanker that got through the Strait of Hormuz.”
At a California legislative hearing Tuesday, Siva Gunda, the vice chairman of the California Energy Commission, said the state has enough gasoline to accommodate demand for the next six weeks. That’s not a very long time, especially given that it takes weeks or months for oil to travel from the Middle East to California. And that process won’t begin until the Strait of Hormuz reopens.
There is a region, however, with abundant oil available for sale and safe passage — the southeastern United States. Unfortunately, the Jones Act, an antiquated 1920 law, mandates that only U.S.-flagged ships may move cargo between U.S. ports. But only 55 of the more than 7,000 oil tankers worldwide comply with this requirement.
This is where Mr. Trump rode to the rescue. Late last month, the White House announced Mr. Trump would suspend the Jones Act for another 90 days. In March, he originally waived it for 60 days. This will make it easier for California and Nevada to obtain domestic product.
If only Mr. Trump could also suspend the destructive energy policies imposed by Gov. Newsom and California Democrats.
LAS VEGAS (KSNV) — An adoptable pet is in the spotlight for “Furever Home Friday,” with Amy from the Nevada SPCA featured in a segment highlighting an animal available for adoption today.
The Nevada SPCA encouraged viewers looking to add a pet to their family to consider adopting.
Alex LaRosa hit for a .262 batting average in 50 plate appearances for the Bishop Gorman baseball team through its 32 games played entering Thursday.
But with a chance for the Gaels to punch their ticket to the Class 5A state tournament, LaRosa came up with the biggest swing of his season.
LaRosa hit a solo home run in the top of the sixth inning and broke a tie game, which proved to be the deciding run in Gorman’s 8-4 win over Centennial on Thursday night at Durango High in a 5A Southern Region winners bracket final.
The Gaels (28-6) have qualified for the 5A state tournament, which begins May 14 at Las Vegas High. The Gaels also advance to Saturday’s 5A Southern Region title game at 10 a.m. Saturday at Durango.
“My teammates, they just push me to be better in everything to do,” LaRosa said. “I know if I get on, they’re going to to get the job done and score me. My job, hitting in the bottom of the lineup is making sure I get on base anyway I can. I just put a good swing on the ball and it got out.”
Centennial falls to the losers bracket final and will play either Arbor View or Palo Verde at 6:30 p.m. Friday at Durango to determine Gorman’s opponent for Saturday and the South’s second spot in the state tournament. Arbor View and Palo Verde play in an earlier elimination at 4 p.m. Friday at Durango to determine Centennial’s opponent.
”It feels good, we fell short the last couple of years (of reaching the state tournament),” LaRosa said. “It just feels good to finall be in it and hopefully we keep going and win it.”
LaRosa’s blast was much needed after a disastrous bottom of the fifth inning for Gorman. The Gaels led 4-0, but Centennial (25-10) cut into the deficit when Jaxon Burr singled which scored Chase Hurley, who led the inning off with a triple.
Then Jake Turner hit a fly ball to left-center field, and as Gorman center fielder DeMari Hall and Logan Grubbs dived for the ball, they collided and the ball went all the way to the wall for a two-run, inside-the-park home run.
Four batters later, Gorman catcher Austin Argenta threw to first base to pick off runner Trevor Henson, but Argenta’s throw was wild and sailed into left field, scoring Kane Barber from second, tying the game.
“I had just given a speech right before we went out to hit that we were good, we weren’t losing this game,” LaRosa said. “We’re still in this game and the dugout went crazy. We just exploded after that.”
LaRosa, who finished 2-for-4 with two runs scored, followed up with his home run in the top of the sixth, which hit the top of the left field fence. That caused a brief discussion between the three umpires before they confirmed it was a home run.
“I was just looking for a fastball to drive into the gap so my teammates could drive me in, but I got lucky, back spun it and it got out of here,” LaRosa said. “At first, I thought it was gone and then I looked up and the ball bounced back in the field.
“Then the (umpire) told me it was a home run and I kind of blacked out. It was a surreal feeling.”
Grubbs added an RBI single in the top of the seventh for Gorman. Chase Wilk was 2-for-4 with a home run in the second, a run scored during a three-run Gorman fourth inning and an RBI on a ground out in the seventh.
Justin Rodrigues had a two-run double in the fourth capped off the fourth inning for Gorman, which put the Gaels ahead 4-0. Rodriguez went 2-for-4 and recorded the final three outs on the mound for the Gaels.
Hurley and Burr each had two hits and a run scored for Centennial.
“It feels good, just returning to a national powerhouse that we were,” LaRosa said. “It’s the standard to be in the state tournament every year and compete for that state championship. So it feels good to bring the culture back to Gorman.”
Other 5A baseball results
No. 2S Arbor View 11, No. 2M Faith Lutheran 3: At Durango, Devin Martin’s two-run home run capped off an eight-run fourth inning for Arbor View, which helped the Aggies (30-7) roll past Faith Lutheran (16-15) in a 5A Southern Region elimination game.
In the fourth inning against Faith Lutheran, the Aggies scored twice on bases loaded walk, a wild pitch, a two-run single from Rhett Bryce and an RBI single by Angelo Ugarte before Martin hit his home run.
Martin finished with three RBIs and Ugarte added two RBIs. Rookie Shepard and Kingston Kela each recorded an RBI for Faith Lutheran.
No. 3M Palo Verde 7, No. 2D Desert Oasis 5: At Durango, Stone Amsden’s grand slam highlighted a seven-run seventh inning to give Palo Verde the lead, and the Panthers (26-8) held on to beat Desert Oasis (26-8-1) in an elimination game.
Desert Oasis, the Desert League’s No. 2 seed, led 4-0 entering the seventh. Owen Anderson and Matthew Simmler each had an RBI single, and Kyle Johnson scored in a wild pitch before Amsden’s homer put the Panthers, the Mountain League’s No. 3 seed ahead.
Amsden finished 2-for-4 for Palo Verde. The Panthers had just six hits.
Lincoln Guillermo was 2-for-4 with a home run for Desert Oasis, and Brody Griffith was 2-for-3 with two runs scored. Landon O’Dell had an RBI single for the Diamondbacks and Aidan Smith added an RBI and a run scored.
Contact Alex Wright at awright@reviewjournal.com. Follow @AlexWright1028 on X.
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