Justia Entertainment & Sports Law Opinion Summaries

The Supreme Court reversed the decision of the court of appeals apportioning to Texas all of Sirius XM Radio's receipts from Texas subscribers, holding that Sirius's monthly subscription fees from Texas users were not receipts from a "service performed in this state."To calculate the franchise tax it owes to the state of Texas, Sirius must first calculate its receipts from each service performed in the state. See Tex. Tax Code 171.103(a). Before the Supreme Court, Sirius argued that the service it performs for its Texas subscribers is the production of radio shows and the transmission of a radio signal, almost all of which takes place outside of the state. The Supreme Court agreed and reversed the court of appeals' holding that the service performed by Sirius for Texas subscribers was unscrambling the radio signal. The Supreme Court reversed, holding (1) Sirius had little personnel or equipment in Texas that performs the radio production and transmission services for which its customers pay monthly subscription fees; and (2) therefore, the court of appeals erred in apportioning to Texas all of Sirius's receipts from Texas subscribers. View "Sirius XM Radio, Inc. v. Hegar" on Justia Law

Plaintiffs, a putative class of fantasy sports players, filed suit alleging claims for fraudulent misrepresentations and omissions, negligent misrepresentations, violations of various state consumer protection laws, and unjust enrichment. Plaintiffs alleged that defendants fraudulently concealed that player statistics were purportedly unreliable because of rule violations in the form of electronic sign-stealing by certain MLB teams during the 2017–2019 baseball seasons. Plaintiffs further alleged that MLB intentionally took no action to address these rule violations in order to protect its financial interest and investment in DraftKings.The Second Circuit affirmed the district court's dismissal of the First Amended Complaint and its denial of plaintiffs' motion for reconsideration, holding that alleged misrepresentations or omissions by organizers and participants in major league sports about the competition itself—such as statements about performance, team strategy, or rules violations—do not give rise to plausible claims sounding in fraud or related legal theories brought by consumers of a fantasy sports competition who are utilizing a league's player statistics.The court also affirmed the district court's order, which concluded that a September 14, 2017 letter from the MLB Commissioner to the New York Yankees General Manager should be unsealed. The court concluded that the district court did not abuse its discretion in unsealing the letter in light of plaintiffs' attempted use of the letter in their proposed Second Amended Complaint and the district court's discussion of the letter in explaining its decision to deny plaintiffs' request for leave to amend in their reconsideration motion, and because MLB disclosed a substantial portion of the substance of the letter in its press release about the investigation. View "Olson v. Major League Baseball" on Justia Law

The Ninth Circuit affirmed the district court's order vacating the jury's damages award for copyright infringement and granting judgment as a matter of law to Katy Perry and other defendants. Plaintiffs, Christian hip-hop artists, filed suit alleging that a repeating instrumental figure in one of Katy Perry's songs copied a similar ostinato in one of plaintiffs' songs.The panel held that copyright law protects musical works only to the extent that they are original works of authorship. In this case, the trial record compels the panel to conclude that the ostinatos at issue consist entirely of commonplace musical elements, and that the similarities between them do not arise out of an original combination of these elements. Therefore, the jury's verdict finding defendants liable for copyright infringement was unsupported by the evidence. View "Gray v. Hudson" on Justia Law

Larry Nassar sexually assaulted hundreds of girls and young women during his involvement with USA Gymnastics (USAG), the non-profit organization which governs the sport in the United States. As a result of Nassar’s abuse, USAG has been sued several times and investigated by Congress and federal and state authorities. USAG sought financial help with its defense from insurers, including Liberty, with which USAG had a claims-made, directors and officers (D&O) liability insurance policy. An insurance-coverage lawsuit in Indiana state court was removed to federal court.The Nassar-related litigation and investigations forced USAG into bankruptcy. The bankruptcy court issued proposed findings and conclusions, including that the Nassar-related claims were timely made and that a wrongful-conduct exclusion applied to only those claims for which Nassar was criminally convicted. The district court agreed.The Seventh Circuit remanded, first holding that it had jurisdiction because the ruling had the “practical effect” of an injunction under 28 U.S.C. 1292(a)(1). USAG’s claims were timely made during the policy period. The wrongful conduct exclusion, which the court found ambiguous as applied to this case, applies to 10 instances of Nassar’s sexual abuse, but not to claims related to his abuse that were not finally adjudicated. A bodily injury exclusion in the policy does not preclude coverage; coverage is proper for various government investigations and other matters. View "USA Gymnastics v. Liberty Insurance Underwriter, Inc." on Justia Law

Vanndrya Srouy graduated from Crawford High School (Crawford) in the San Diego Unified School District (the District). While a student at Crawford, he was a member of its varsity football team. After Srouy graduated, he found himself named as a co-defendant in a lawsuit filed by a football referee, John Herlich, who claimed to have been injured when Srouy blocked an opponent, who fell into Herlich, during a school football game. The District (as co-defendant) rejected Srouy’s tender of his defense in the Herlich lawsuit. Srouy then filed underlying lawsuit against the District, claiming the District violated a mandatory duty to defend him in the Herlich lawsuit. Srouy alleged this duty arose under the free school guarantee and the equal protection clause of the California Constitution; title 5, section 350 of the California Code of Regulations; and/or Education Code section 44808. The trial court granted the District’s demurrer without leave to amend and dismissed Srouy’s operative complaint. "Although Srouy’s plight evokes our sympathy," the Court of Appeals found its ability to respond was "constrained by the law, and the allegations of this case do not afford a judicial solution. We leave it to the Legislature to determine whether the needs of student athletes in Srouy’s position are sufficiently addressed by current law, and if not, to craft an appropriate solution." Judgment was affirmed. View "Srouy v. San Diego Unified School District" on Justia Law

Before the end of the 2019–20 academic year, MSU had several Division I sports teams: men’s baseball, basketball, cross country, football, golf, ice hockey, soccer, swimming and diving, tennis, track and field, and wrestling; and women’s basketball, cross country, field hockey, golf, gymnastics, rowing, soccer, softball, swimming and diving, tennis, track and field, and volleyball. In October 2020, MSU announced it would no longer sponsor the men’s and women’s swimming-and-diving teams after the 2020–21 school year. During the 2019–20 school year, the teams had 29 men and 33 women. Women student-athletes sought a preliminary injunction to prevent MSU from eliminating the women’s swimming-and-diving team, arguing that MSU failed to provide women with substantially proportionate athletic opportunities, as required by Title IX. In the 2018–19 school year, 48.8% of undergraduate students were male and 51.2% were female; and, in the 2019–20 school year, 49.1% were male and 50.9% were female.The district court denied a preliminary injunction, finding that the plaintiffs were not likely to succeed on the merits of their Title IX claim. The Sixth Circuit vacated, first finding that MSU did not inflate its number of women athletes. The correct inquiry focuses on the number of participation opportunities, not the gap as a percentage of the athletic program. . A school may fail to achieve substantial proportionality even if its participation gap is only a small percentage of the size of its athletic program View "Balow v. Michigan State University" on Justia Law

In 2018, plaintiff-appellant Monica Mayes was struck in the face by a foul ball while attending an intercollegiate baseball game between two private universities, Marymount University (Marymount) and defendant-respondent La Sierra University (La Sierra). Mayes suffered skull fractures and brain damage, among other injuries. When struck by the foul ball, Mayes was seated in a grassy area along the third-base line, behind the dugout, which extended eight feet above the ground, and there was no protective netting above the dugout. Mayes sued La Sierra for her injuries, alleging a single cause of action for negligence for its failure to: (1) install protective netting over the dugouts; (2) provide a sufficient number of screened seats for spectators; (3) warn spectators that the only available screened seats were in the area behind home plate; and (4) exercise crowd control in order to remove distractions in the area along the third-base line that diverted spectators’ attention from the playing field. La Sierra moved for summary judgment, claiming that the primary assumption of risk doctrine barred Mayes’s negligence claim. The trial court agreed and granted the motion, observing that the case was “a textbook primary assumption of the risk case.” To this, the Court of Appeal reversed, finding La Sierra did not meet its burden of showing that the primary assumption of risk doctrine barred Mayes’s negligence claim. In addition, Mayes showed there were triable issues of material fact concerning whether La Sierra was negligent for the reasons she alleged in her complaint. View "Mayes v. La Sierra Univ." on Justia Law

The City of Oakland sued the NFL and its member teams, alleging that the defendants created artificial scarcity in their product (NFL teams), and used that scarcity to demand supra-competitive prices from host cities. The city alleged that when it could not pay those prices, the defendants punished it by allowing the Raiders to move to Las Vegas.The Ninth Circuit affirmed the dismissal of the case. While the city had Article III standing because it plausibly alleged that, but for the defendants’ conduct, it would have retained the Raiders, the defendants’ conduct did not amount to an unreasonable restraint of trade under section 1 of the Sherman Act. The city failed sufficiently to allege a group boycott, which occurs when multiple producers refuse to sell goods or services to a particular customer, alleging only that a single producer, the Raiders, refused to deal with it. The city also failed sufficiently to allege statutory standing on a theory that the defendants’ conduct constituted an unlawful horizontal price-fixing scheme. A finding of antitrust standing requires balancing the nature of the plaintiff’s alleged injury, the directness of the injury, the speculative measure of the harm, the risk of duplicative recovery, and the complexity in apportioning damages; here, the city was priced out of the market and was a nonpurchaser. Any damages were highly speculative and would be exceedingly difficult to calculate. View "City of Oakland v. Oakland Raiders" on Justia Law

For budget reasons, St. Cloud State University shut down six of its sports teams, including women's tennis and Nordic Skiing teams. Female student-athletes brought a Title IX discrimination action. 20 U.S.C. 1681(a). The district court preliminarily enjoined cutting the women's teams, concluding the University failed to comply with Title IX requirements in its allocation of athletic participation opportunities and treatment and benefits for student-athletes.The Eighth Circuit reversed in part and remanded. The court upheld findings that the University uses a tier system for dividing particular teams, offering different levels of support to each tier. The University violated Title IX by not providing equitable participation opportunities for men and women. The district court erred, however, by requiring the University to provide equitable treatment and benefits “among the tiers of support,” and by mandating steps toward eliminating the unequal distribution of “participation opportunities among the tiers” rather than analyzing the institution's programs as a whole. View "Portz v. St. Cloud State University" on Justia Law

Mitchell sued Twin Galaxies for defamation and false light after Twin Galaxies issued a statement asserting Mitchell’s world record scores in the Donkey Kong arcade game were not achieved on original unmodified hardware as required under its rules. Twin Galaxies removed all of Mitchell’s world record scores and banned him from participating in its leaderboards. The trial court denied Twin Galaxies’ special motion to strike under the strategic lawsuits against public participation statute (anti-SLAPP motion). (Code Civ. Procedure 425.16.) The court of appeal affirmed. Mitchell showed a probability of prevailing on his claims; the trial court properly denied the anti-SLAPP motion. Mitchell made a prima facie showing of falsity by providing his own declaration and others’ declarations attesting to the equipment used and made a prima facie showing of actual malice. Twin Galaxies failed to take any steps to inquire into the truth of Mitchell’s statements even after he was provided the names of witnesses and having confirmation of the procedures under which the disputed scores were achieved. View "Mitchell v. Twin Galaxies, LLC" on Justia Law