Judge Cooper sides with FSU: ACC operates a significant business in Florida
Judge John Cooper sided with Florida State on the matter of personal jurisdiction, denying the Atlantic Coast Conference's motion to dismiss, in a ruling at the Leon County Courthouse on Tuesday afternoon.
“I think the carrying out of a business in the state is the strongest of the arguments (by FSU),” Cooper stated in a lengthy verbal ruling. “I have found that the complaint sufficiently alleges that the ACC operates a significant business in Florida.”
Early on in the day, Cooper smartly reminded: “The first hurdle in this track meet is jurisdiction.” There are other legal filings to be heard that Cooper must rule upon, and there is a concurrent FSU-ACC lawsuit in Mecklenberg County (N.C.) Superior Court.
Cooper heard arguments from legal teams representing FSU and the ACC for a third time in the last three months.
Peter Rush, a West Palm Beach litigator representing FSU, methodically argued his points that FSU invested $10 million on its in-house production facilities in an effort to broadcast more than 200 live events (for television or streaming) each year. FSU and Miami combined have produced more than 400 home games, with Rush emphasizing that’s more than one a day to accommodate a joint venture between schools and the ACC.
"Your honor, that is a business venture,” Rush said. “... It's a business to make money."
The ACC’s legal team asserted that it has no office in Florida and does not pay taxes. But Cooper cited prior legal precedent and sided with FSU’s argument.
“If you operate a business in Florida, you don't have to have an office or an agency to meet that rule,” Cooper said.
FSU’s legal team pointed toward an ACC agreement with Fanatics, a Jacksonville-based apparel fulfillment company. Fans who go to the ACC site and look to purchase clothing are then routed to Fanatics, and the ACC received a check of more than $144,000 from the company.
He also again asked both legal teams to park the hyperbole within their arguments and stick to the facts.
As with prior hearings in April and May, Cooper took control of the courtroom early. He interrupted both legal teams often, asking probing questions and steering the discussion. Cooper fixated on the ESPN contract, what he called the “nub” of the case and insisting that it should not be called an agreement.
Cooper often read from ACC’s game-day guidelines as well as those from tournaments run by the league. He insists the ACC controls game-day operations, from where press conferences are held to where cheerleaders can perform and when bands can play.
"How is that not operating a business in Florida?" he asks to ACC's legal team.
Cooper said he reviewed written arguments from the lawyers as well as affidavits from at least three people: ACC deputy commissioner Ben Tario, director of Seminole Productions Kirby Kander as well as deputy director of athletics administration Cindy Hartmann. In his closing arguments, Cooper pointed to Tario’s affidavit and the acknowledgement that FSU and Miami work to produce games for ESPN channels and the ACC Network.
Both legal teams agreed they have had good discussions about mediation. Cooper, who spent more than 10 years as a mediator, has emphasized the need for the sides to mediate the case on Tuesday and in prior hearings.
Lawyers for the ACC said they want to ensure the protection of the ESPN agreement. Cooper acknowledged he knows Florida Attorney General Ashley Moody is also seeking the ACC’s media rights contract with ESPN.
Cooper closed a 52-minute verbal ruling by emphasizing, "I do think this dispute is primarily over the FSU media rights, which the ACC holds, and you know all the permutations that entails."
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