Originally Posted by JoeRedskin
Okay - I think it comes down to a balancing of two legal concepts: (1) settlements are settlements; versus (2) bad faith can't triumph.
The procedural background: In the early 90's Reggie White and the NFLPA sue the NFL and the 32 clubs (the "Defendants") in order to become a free agent. Long story short, in 1993, the Defendants settle the suit and, as part of that settlement agreement, agrees to institute a free agency system through negotiations with the NFLPA. As a result, each CBA agreement is incorporated into the terms of the 1993 Settlement and is considered an amendment of that Settlement.
Each Sides Arguments: The NFLPA is now asserting that the owners actions in 2010 were collusive and constituted a breach of the 1993 Settlement as it was amended by the 2006 CBA. As such, they are asking the Court that presided over the 1993 settlement to reopen the case for the specific purpose of determining awarding damages for the alleged breach.
Based on the NFL's attorney's statements, the NFL will counter that the 1993 Settlement was amended again in 2011 and, as part of that amendment and as a precondition for it, the NFLPA specifically waived any claims for collusion - whether known or unknown to the NFLPA. As such, even if collusion occurred in breach of the 2006 Amendment, the NFLPA waived their rights to sue for such breaches in the 2011 Amendment.
My Off The Cuff, Free Of Charge To Fellow Warpathers Analysis: As I said at the beginning, two legal concepts appear to be in conflict. On one hand you have the principle that "settlement are meant to settle" versus the age old "liars never prosper".
The phrase "forego all claims known or unknown" is common in settlements and is meant to prohibit folks from coming back and nitpicking a settlement. People enter into settlements in order to resolve their differences and finally put an end to matters. One of the benefits of a settlement is that it is just what its name implies - a settlement so that parties can move on and not worry about old issues being constantly trotted out over and over again. Accordingly, courts tend to put the burden on those trying to reopen settlements and, usually, saying "gosh jeepers, I didnt realize all of the results" is not justification for reopening an agreed upon settlement. If you didn't do your due diligence or didn't fully realize the ramifications of your actions, well, too bad, so sad for you - should've thunk of that before signing your John Hancock.
ON THE OTHER HAND - and believe it or not - the law does not like liars. Operating in bad faith and working to deprive a party of facts and knowledge generally has ramifications. Settlements are contract negotions and, implicit in all such negotions, is the duty of good faith. Contracts entered into in bad faith will not be enforceable by the party exercising bad faith.
IN THIS CASE - the question to me seems to be, when settling collusion claims shouldn't you expect that the alleged collusion involved secrecy and, as such, by giving up your rights to allege collusion aren't you giving up your right to assert that the collusive parties acted secretly? Or is the underlying lie in this case beyond the pale of reasonable expectations and, as such, something the NFLPA could not be deemed to reasonably have waived.
I really don't know how the court will read the waiver - it is dependent on the governing law and the specific facts. I have no doubt that is where the lawyers who make the big bucks will be generating their fees.
Disclaimer: All of the above is stream of conscience written analysis based on reading the complaint, no legal research, working only from memory, about 10 minutes of analytical thought and minimalist editing.
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