Horizon League has filed a lawsuit against Valpo & Missouri Valley Conference

VU2014 · August 24, 2017, 12:12:36 PM

https://twitter.com/JasonBelzer/status/900754878548586496

https://www.forbes.com/sites/jasonbelzer/2017/08/24/horizon-league-sues-valapariso-university-and-missouri-valley-conference-over-realignment/#198c407a277a

"The lawsuit, filed on June 27 in Evansville, IN, claims that Valparaiso University breached its contract with the Horizon League when it failed to provide one-year notice of its intent to leave the conference, and thus that the university has incurred $500,000 in agreed upon liquidated damages. It further claims that the Missouri Valley Conference (MVC), Valpo's new home, induced (and tortuously interfered with) the school to breach that contract and move conferences."

..........

VU2014 · August 24, 2017, 12:27:38 PM

I honestly don't know what to think. If anyone is a lawyer I'd like to hear their opinion on this whole thing.

vu72 · August 24, 2017, 01:15:50 PM

Non-Lawyer here. Nonetheless it seems to me that there was a breech and that the parties agreed to liquidating damages ($500,000). I don't really see how Valpo would get out of this fee.

Valpo89 · August 24, 2017, 01:40:11 PM

Anyone see the irony in Heckler proposing increasing the exit fee to $500,000 in 2012, and then five years later he claims Valparaiso shouldn't be subject to that fee since it wasn't in place when Valpo entered the league in 2006?

VU2014 · August 24, 2017, 01:51:26 PM

This is my thoughts on the whole thing after asking a few different peoples opinions who are attorneys.

Its likely that Valpo always intended on paying some amount of a exit-fee but there may be some legal argument that Valpo shouldn't have to pay a full $500,000 but the real goal may be just settle and reduce the payment. Its more of a business/cost savings move possibly. None of us have seen the bylaws, amendments or the paperwork because they aren't public record so its hard for us to have a fully informed opinion on this.

It also seems that lawsuits aren't uncommon in this recent era of conference realignment and typically the school & the conference just settle at some number to avoid the trial fees, etc. Happened with Maryland/TCU/Rutgers, etc. all went through this when they switched conferences. We'll just have to see how this all shakes out.

IrishDawg · August 24, 2017, 02:00:35 PM

Quote from: VU2014 on August 24, 2017, 01:51:26 PM
This is my thoughts on the whole thing after asking a few different peoples opinions who are attorneys.

Its likely that Valpo always intended on paying some amount of a exit-fee but there may be some legal argument that Valpo shouldn't have to pay a full $500,000 but the real goal may be just settle and reduce the payment. Its more of a business/cost savings move possibly. None of us have seen the bylaws, amendments or the paperwork because they aren't public record so its hard for us to have a fully informed opinion on this.

It also seems that lawsuits aren't uncommon in this recent era of conference realignment and typically the school & the conference just settle at some number to avoid the trial fees, etc. Happened with Maryland/TCU/Rutgers, etc. all went through this when they switched conferences. We'll just have to see how this all shakes out.

This is really all it is - neither side is likely going to want to go to trial over this. The number's not big enough for it to benefit either side that much. Valpo will likely pay the majority of it since they have a lot more to lose in this case, especially given the legal precedence and that the league has included its attorney fees and legal costs in its suit. It's also interesting that the league filed suit in Vanderburgh County in Evansville, but that's likely so if this does go to trial that they can get a favorable ruling.

zvillehaze · August 24, 2017, 02:30:29 PM

Quote from: IrishDawg on August 24, 2017, 02:00:35 PMIt's also interesting that the league filed suit in Vanderburgh County in Evansville, but that's likely so if this does go to trial that they can get a favorable ruling.

Why would the Horizon League get a favorable ruling in Evansville?

VU2014 · August 24, 2017, 02:55:24 PM

Quote from: zvillehaze on August 24, 2017, 02:30:29 PM
Quote from: IrishDawg on August 24, 2017, 02:00:35 PMIt's also interesting that the league filed suit in Vanderburgh County in Evansville, but that's likely so if this does go to trial that they can get a favorable ruling.
Why would the Horizon League get a favorable ruling in Evansville?

My guess is the Horizon League attorney's tried to file the lawsuit with a judge they thought would be favorable to their case. Just a guess on my part.

VU2014 · August 24, 2017, 03:03:16 PM

4throwfan · August 24, 2017, 03:26:17 PM

I'm a lawyer, but this is out of my wheelhouse.

Seems odd that venue is in Evansville. However, it makes sense. The suit says that venue is proper there since Evansville (a member of one of defendants) is located there. So, venue under Indiana civil procedure is likely proper. I would say the reason is simply to get away from Valpo. They ask for a jury trial, so it would be dumb to have the suit in northwest Indiana where Valpo may have some simpathizers. I looked up the law firm on the internet. They market themselves as litigators, so they probably look for any tactical advantage regardless of the actual impact.

Most lawsuits settle in the neighborhood of 50 cents on the dollar (everyone is half right and half wrong), so expect Valpo and/or MVC to have to cough up $200-300K in order to settle. That is, of course, if there are no other special circumstances, such as politics or NCAA tourney requirements require no open claims, etc.

That's my 2 cents, but probably not worth 2 cents.

IrishDawg · August 24, 2017, 03:48:50 PM

Quote from: VU2014 on August 24, 2017, 03:03:16 PM
One thing that hasn't been discussed yet is how petty the Horizon League looks that they are actually suing the Missouri Valley Conference for damages because they took us (Valpo) away from the Horizon league and have the nerve to ask for damages.

The Forbes article was horribly written and seemed to slant in towards Horizon League case. My guess is the Horizon League offices leaked the story or made it aware to the Forbes reporter.

It's lawsuit 101, you sue all the parties involved and then pair it down from there. Regardless if one was directly at fault (the MVC likely did want Valpo for this next year, so yes, in a sense they did "induce" Valpo to breach the 1 year notification clause) for the breach of contract, the Horizon League is trying to get maximum bucks, much like Valpo and the MVC would like to minimize their liability for Valpo leaving the league, which is why they weren't making any attempt to pay the Horizon League prior to the suit's filing. As 4throwfan states too, they may have included them simply to get the venue away from Valparaiso.

I'm not trying to argue the validity of their claims (it's highly unlikely any of the schools were caused significant monetary harm given the timing of Valpo's exit and subsequent add in of IUPUI a month later), but most of the time as the filer, you're better off throwing stuff against a wall to see what sticks if it actually goes to trial. Is it petty? Yep. But unfortunately that's the nature of litigation. Sometimes common sense need not apply.

I don't read any slant in the article however. Legal precedence being in the Horizon League's favor and Valpo's argument for why they shouldn't pay when at the very least the school probably voted in favor of the Bylaw amendment change, the author believes that Valpo will wind up paying the majority of the fee in a settlement to the league. Should he have left that piece out of the article and just mentioned both sides of the legal claim? Sure, but the author is an attorney, so it's not completely out of bounds in my opinion to offer up his legal opinion on the two sides and what he feels is going to happen.

wh · August 24, 2017, 04:26:49 PM

I wonder if this article will become Exhibit A for the defense:

HL commissioner says conference prepared for Valpo depature

Jay Morrison Staff Writer
7:21 p.m Tuesday, May 9, 2017 Sports

"This is relatively typical of the Division I environment at this point," he said. "There is membership movement. It's been pretty regular. And there's really not anything that happens any more that takes people by surprise. We have plans in place. We have proactive plans. We have transitional plans."

https://www.google.com/amp/www.mydaytondailynews.com/sports/commissioner-says-conference-prepared-for-valpo-depature/53zZ8pUjR8fStHwzCDhN6N/amp.html

vu84v2 · August 24, 2017, 04:27:51 PM

Is the Summit League suing IUPUI and the Horizon League?

VU2014 · August 24, 2017, 05:16:47 PM

Quote from: vu84v2 on August 24, 2017, 04:27:51 PM
Is the Summit League suing IUPUI and the Horizon League?

Probably sending gift baskets

usc4valpo · August 24, 2017, 07:46:15 PM

Knowing that Valpo throws nickels like manhole covers, my money is on Heckler in this situation. He had to have known in this situation about the buyout fee, and I am sure Valpo's lawyers looked at this before moving to the Valley.

That being said, is $500000 going to really kill Valpo with a $300M+ foundation? Seriously, is this big news?

VU2014 · August 24, 2017, 08:23:32 PM

Something tells me we don't know the whole story behind this yet. I forget who reported it but a few alumni pledged to cover the HL exit-fee. I'm not sure whats going on. Maybe Heckler is just being frugal or maybe there is actually something in the bylaws that is a "technicality" that they think gives them leeway to attempt to settle instead of paying the full $500k. I'm not a lawyer but I've taken 2 business law classes (still doesn't make me even remotely qualified to even have an opinion) but if I learned anything from those classes it taught me that the legal system and contracts sometimes aren't always black & white. Either way I'm not worried about this but I don't particular like our school's name & a lawsuit being brought up in the same sentence.

elephtheria47 · August 24, 2017, 08:25:02 PM

The times article mentions in 2006 valpo signed a contract for 5 years to be a member of the Horizon league. After the 5 years, valpo would be renewed on a year to year basis. It also alleges the two sides were mandated to meet informally to resolve this issue before the filing of any lawsuits however the HL did not do this...

wh · August 24, 2017, 08:59:45 PM

Quote from: Valpo89 on August 24, 2017, 01:40:11 PM
Anyone see the irony in Heckler proposing increasing the exit fee to $500,000 in 2012, and then five years later he claims Valparaiso shouldn't be subject to that fee since it wasn't in place when Valpo entered the league in 2006?

It's ironic that that someone who proposes an increase would get burned by it 5 years later. It's hypocritical that someone who proposes an increase would try to weasel out of it 5 years later.

I have to wonder if there's more to the story than this; otherwise, Valpo comes off looking less than honorable here.

EddieCabot · August 24, 2017, 09:00:15 PM

Quote from: vu84v2 on August 24, 2017, 04:27:51 PM
Is the Summit League suing IUPUI and the Horizon League?

Not that I've read about. Probably hinges on whether the Summit has an exit fee and if IUPUI paid it.

VU2014 · August 24, 2017, 09:19:31 PM

Tweet at Paul if you have any questions
https://twitter.com/NWIOren/status/900904921930883072

EddieCabot · August 24, 2017, 09:23:21 PM

Strange that the HL didn't sue Butler or Loyola, but does sue Valpo. Have to think this indicates that LeCrone is panicking and wants to do everything he can to keep more schools from defecting.

VU2014 · August 24, 2017, 09:31:49 PM

Quote from: EddieCabot on August 24, 2017, 09:23:21 PM
Strange that the HL didn't sue Butler or Loyola, but does sue Valpo. Have to think this indicates that LeCrone is panicking and wants to do everything he can to keep more schools from defecting.

I think LeCrone and the HL went full on panic mode when they vote to invite IUPUI to the Conference

VU2014 · August 24, 2017, 09:46:08 PM

https://twitter.com/pronkville08/status/900767718604984321
https://twitter.com/Valpo_Hoops/status/900777796741599234
https://twitter.com/McCannSportsLaw/status/900910711936876544

VUGrad1314 · August 25, 2017, 12:38:27 AM

Quote from: wh on August 24, 2017, 04:26:49 PM
I wonder if this article will become Exhibit A for the defense:

HL commissioner says conference prepared for Valpo depature

Jay Morrison Staff Writer
7:21 p.m Tuesday, May 9, 2017 Sports

"This is relatively typical of the Division I environment at this point," he said. "There is membership movement. It's been pretty regular. And there's really not anything that happens any more that takes people by surprise. We have plans in place. We have proactive plans. We have transitional plans."

https://www.google.com/amp/www.mydaytondailynews.com/sports/commissioner-says-conference-prepared-for-valpo-depature/53zZ8pUjR8fStHwzCDhN6N/amp.html

That and the fact that they added IUPUI just a day or so after filing suit. So much for causing damage by forcing teams to adjust to a nine team schedule. Also did Butler and Loyola give one year's notice when they left? I don't think so but they probably paid their exit fees. VU would have gladly given more notice, but then the HL would have punished the baseball and softball teams. Valpo may come off looking a bit greedy here, but the HL comes off looking downright petty. Not an attractive quality for a conference with ambitious expansion plans. Wonder if this makes IPFW WIU and RMU think twice about joining. LeCrone may lose the war in pursuit of this one battle.

Quote from: elephtheria47 on August 24, 2017, 08:25:02 PM
The times article mentions in 2006 valpo signed a contract for 5 years to be a member of the Horizon league. After the 5 years, valpo would be renewed on a year to year basis. It also alleges the two sides were mandated to meet informally to resolve this issue before the filing of any lawsuits however the HL did not do this...

Let me preface all of this by saying that I am not a lawyer nor do I understand the legal system all that well. What you've written here is very interesting and could throw the case out entirely, however I would be careful with the statement that the HL did not meet informally with Valpo. That's the key word and what could constitute an informal meeting is pretty broad I would think. Another key word is supersede. If Valpo was to be renewed on a year to year basis that constitutes a rolling option. The question is who controls the option? Valpo? The HL? Is it a mutual option? If it's Valpo's option or a mutual one the argument can be made that Valpo was within its right to decline but since the fee applies to member institutions which Valpo was at the time the announcement was made and would remain such until June 30, the argument can be made that Valpo's status as a member institution supersedes the option.The sticking point here is that all realignment decisions need to be made by that June 30 date to be considered valid for the next year but that doesn't really matter here.

I think the superseding argument is going to win out, and Valpo will have to pay.However in light of the precedent set by similar cases (not sure if any of those were lawsuits like this however) and the subsequent actions and statements by HL commissioner LeCrone, I think a settlement will be reached that will see Valpo allowed to leave but having to pay, although maybe not the full amount. Not sure why the money is an issue I thought it was all settled cost and budget wise and most knew there would be an exit fee anyway. Both sides look bad but Valpo probably looks worse. I think they will settle but if this goes to the mat I think the HL will win.

Both sides look kind of stupid here too unless there's some language in the agreement and or evidence we're not privy to. Suing the MVC seems foolish because it's extremely likely that the MVC's main inducement to Valpo was being a better more attractive more stable conference Doug Elgin even credits Valpo for luring them. However Evansville may have been chosen because it's 1. In Indiana and would have jurisdiction on those grounds and a former HL\current Valley city with a rumored HL target (USI) and a fanbase that likely has fonder feelings for the HL where they were a power than the Valley where they struggle. Great way to get your name out in an important city for the HL wherein they should find a sympathetic populace that can't really be found in any other Indiana city. Also Heckler thinking his language wouldn't apply to Valpo seems a bit naive unless there's language in there that we don't know.

All of this said F LeCrone and his stupid crappy petty JV league.

NativeCheesehead · August 25, 2017, 06:58:12 AM

Just find the money and settle. I am so done with these idiots in the HL.