Dueling lawsuits related to Florida State University’s quest to leave the Atlantic Coast Conference to seek more lucrative sports deals are continuing on separate legal tracks in two states.
In North Carolina Business Court, Judge Louis Bledsoe III decided in a 76-page opinion on April 4 to reject Florida State’s motion to dismiss or stay the ACC’s lawsuit seeking a determination that current media rights agreements between the school and the conference are valid and enforceable.
Bledsoe, however, did grant the FSU Board of Trustees’ motion to dismiss the nonprofit sports conference’s breach of fiduciary duty claim.
“The FSU board’s argument hinges on its erroneous view that it is the only ‘natural’ plaintiff in this dispute,” Bledsoe’s opinion states. “The ‘natural’ or ‘real’ plaintiff in a civil suit is the party that has allegedly suffered damages at the hands of its opponent. … Here, that is the ACC, which alleges that the FSU board intended to breach the covenants not to sue in the Grant of Rights Agreements.”
FSU’s anticipated lawsuit seeking to pull out of the ACC and no longer be bound by the media agreements, which was filed in Florida a day after ACC filed its lawsuit in North Carolina, threatened the ACC with an “imminent and unavoidable injury,” according to Bledsoe’s opinion.
“In other words, it is the ACC, as the nonbreaching party, rather than the FSU board, as the alleged breaching party, that is the injured party in this dispute,” Bledsoe said.
The court also found that as a venue, North Carolina seemed the appropriate choice because the contracts at the core of the dispute were created in North Carolina and are governed by state laws in North Carolina.
“After careful review, the court concludes on the allegations and facts of record here that the ACC’s choice of forum is entitled to deference as the party first to file,” Bledsoe said.
The ACC expressed satisfaction with the North Carolina judge’s opinion.
“We are pleased with (the April 4) decision, which confirms North Carolina courts are the proper place to enforce the ACC’s agreements and bylaws,” an ACC statement emailed to the Florida Record says. “We remain committed to acting in the best interests of the league's members and will see this process through to protect and advance the ACC.”
FSU said in a statement on X, formerly Twitter, that while the university was disappointed by the decision not to dismiss the ACC lawsuit, it appreciated the court ruling that FSU could not have breached any alleged fiduciary duties to the conference.
“We will continue to aggressively advocate for the university, for FSU athletics and for the sovereignty of the state of Florida as these cases proceed,” FSU said.
On Tuesday, Leon County Judge John Cooper of the Second Circuit Court of Florida denied the ACC’s motion to stay the FSU lawsuit, which challenges the legality of the ACC Grant of Rights and the league’s $572 million fee charged to members that leave the conference.
In his ruling, Cooper rejected the ACC’s position that the Florida case should be put on hold as the North Carolina lawsuit moves forward. Meanwhile, FSU argues that the league’s current agreements undervalue FSU’s media rights and also violate the state of Florida's antitrust laws.