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7th Circuit to hear arguments in NCAA price-fixing lawsuit

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The 7th Circuit Court of Appeals hears arguments Monday in a case brought by two former NCAA athletes whose scholarships were revoked after injuries. The litigants claim that they were wrongly denied multi-year scholarships that would have covered the cost of their bachelor’s degrees.

In the case of Joseph Agnew, et al. v. National Collegiate Athletic Association, No. 11-3066, a federal appellate panel will hear arguments in the case from the Southern District of Indiana following a removal from the Northern District of California. U.S. Judge Jane Magnus-Stinson ruled Sept. 1 in favor of the Indianapolis-headquartered NCAA, dismissing the challenges to two bylaws that dealt with a one-year scholarship limit for student-athletes and a cap on athletic-based discounts that a school can offer per sport each year.

The judge found she was bound by Banks v. National Collegiate Athletic Association, 977 F.2d 1081, 1087-88 (7th Cir. 1992), which examined that lawsuit under the “Rule of Reason” analysis. She declined to apply the “quick look” version of the rule as the plaintiffs argued, and found that the plaintiffs failed to plead a relevant product market. Magnus-Stinson wrote, “… the ‘market’ for bachelor’s degrees is implausible as a matter of law because people cannot simply purchase bachelor’s degrees at Division I colleges and universities.”

 After that ruling dismissed the suit with prejudice, plaintiffs Joseph Agnew and Patrick Courtney filed an appeal.

In appellate briefs filed with court, the plaintiff-appellants argue that the NCAA is trying to reach beyond the District court’s holding by contending not only the financial aid rules are valid, but all the NCAA rules involving student-athletes are presumptively pro-competitive.

“In essence, the NCAA claims an exemption from the antitrust laws for all but a small portion of its rules dealing with television broadcast or coaches’ salaries,” the brief states. “This is a dangerous perversion of the Supreme Court’s rulings….is unsupported by any precedent, and would result in giving the NCAA carte blanche to violate the antitrust laws regardless of the anticompetitive motivation or effect of its rules. The NCAA’s arguments on this appeal should be rejected.”

The NCAA didn’t file a brief prior to the arguments, which are scheduled for 9 a.m. Central Time. Each side has 15 minutes to make their arguments, and there is no timeline on when the appellate panel must make a decision.

 

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  1. Don't we have bigger issues to concern ourselves with?

  2. Anyone who takes the time to study disciplinary and bar admission cases in Indiana ... much of which is, as a matter of course and by intent, off the record, would have a very difficult time drawing lines that did not take into account things which are not supposed to matter, such as affiliations, associations, associates and the like. Justice Hoosier style is a far departure than what issues in most other parts of North America. (More like Central America, in fact.) See, e.g., http://www.theindianalawyer.com/indiana-attorney-illegally-practicing-in-florida-suspended-for-18-months/PARAMS/article/42200 When while the Indiana court system end the cruel practice of killing prophets of due process and those advocating for blind justice?

  3. Wouldn't this call for an investigation of Government corruption? Chief Justice Loretta Rush, wrote that the case warranted the high court’s review because the method the Indiana Court of Appeals used to reach its decision was “a significant departure from the law.” Specifically, David wrote that the appellate panel ruled after reweighing of the evidence, which is NOT permissible at the appellate level. **But yet, they look the other way while an innocent child was taken by a loving mother who did nothing wrong"

  4. Different rules for different folks....

  5. I would strongly suggest anyone seeking mediation check the experience of the mediator. There are retired judges who decide to become mediators. Their training and experience is in making rulings which is not the point of mediation.

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