Parrish et al v. National Football League Players Incorporated

Filing 87

MOTION to Dismiss Second Amended Complaint filed by National Football League Players Incorporated, National Football League Players Association. Motion Hearing set for 8/16/2007 08:00 AM in Courtroom 9, 19th Floor, San Francisco. (Attachments: # 1 Proposed Order Granting Players Inc's Motion to Dismiss Second Amended Complaint)(Goldstein, Claire) (Filed on 7/6/2007)

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Parrish et al v. National Football League Players Incorporated ~ ~. ~.....;! ~~ ~ ....-;! ~ == =- Doc. 87 Case 3:07-cv-00943-WHA Mark Malin (Bar No. 199757) Document 87 Filed 07/06/2007 Page 1 of 33 mmalin(f!Jdeweyballantine. com DEWEY BALLANTINE LLP 1950 University Avenue, Suite 500 East Palo Alto, CA 94303 Tel: (650) 845- 7000; Fax: (650) 845- 7333 Jeffrey L. Kessler j kess ler(f!Jdeweyballantine. David G. Feher (pro hac vice) com (pro hac vice) 7 DEWEY BALLANTINE LLP 1301 Avenue ofthe Americas dfeher(f!Jdeweyballantine. com Eamon O' Kelly (pro hac vice) eokelly(f!Jdeweyballantine. com 8 New York , NY 10019 Tel: (212) 259- 8000; Fax: (212) 259- 6333 Kenneth L. Steinthal (pro hac vice) kenneth. steinthal(f!Jweil. com 10 :G 11 ....;! 'I' ~=t') z~~ ZaE ....;! 'I' 0: Claire E. Goldstein (Bar No. 237979) claire. goldstein(f!Jweil. com WElL , GOTSHAL & MANGES LLP 201 Redwood Shores Parkway Redwood Shores, CA 94065 Tel: (650) 802-3000; Fax: (650) 802- 3100 Bruce S. Meyer (pro hac vice) ~ '2 u ~~s bruce. meyer(f!Jweil. com ;;.. Q , 01) ~ Q\ = WElL , GOTSHAL & MANGES LLP 767 Fifth Avenue New York, NY 10153 Tel: (212) 310- 8000; Fax: (212) 310- 8007 "" 17 18 Incorporated d/b/a Players Inc Attorneys for Defendant National Football League Players UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION BERNARD PAUL PARRISH, HERBERT ANTHONY ADDERLEY, WALTER ROBERTS III Plaintiffs Case No. C 07 0943 WHA PLAYERS INC' S NOTICE OF MOTION AND MOTION TO DISMISS PLAINTIFFS' SECOND AMEND ED COMPLAINT PURSUANT TO FED. R. CIV. P. 12(b)(6) 25 NATIONAL FOOTBALL LEAGUE PLAYERS ASSOCIATION and NATIONAL 26 FOOTBALL LEAGUE PLAYERS INCORPORATED d/b/a/ PLAYERS INC Defendants. Date: August 16, 2007 Time: 8:00 am Ctrm: 9 Judge: William H. Alsup Players Inc s Motion to Dismiss the Second Amended Complaint Civ. Action No. CO? 0943 WHA Dockets.Justia.com ~ ~. ~;'~: = ....;! ~~ :~ ~! ....;~ ~~== =-- Case 3:07-cv-00943-WHA Document 87 Filed 07/06/2007 Page 2 of 33 TO PLAINTIFFS AND THEIR ATTORNEYS OF RECORD: PLEASE TAKE NOTICE that on August 16, 2007 at 8 a. , or as soon thereafter as this matter may be heard, in Courtroom 9 of the above-entitled Court, located at 450 Golden Gate Avenue, San Francisco, California, Defendant National Football League Players Incorporated d/b/a Players Inc ("Players Inc ) will and hereby does move, pursuant to Fed. R. Civ. P. 12(b)(6), to dismiss all causes of action alleged against it by Plaintiffs Bernard Parrish Herbert Adderley, and Walter Roberts III (collectively "Plaintiffs ) in their Second Amended Complaint (the "SAC" As set forth in the accompanying Memorandum of Points and Authorities Memorandum ), the SAC should be dismissed against Players Inc in its entirety. First Plaintiffs ' California Unfair Competition Law (" Section 17200") claims fail because Plaintiffs ~=t') ....;! 'I' have not pled facts sufficient to support a claim of "injury in fact" Plaintiffs ' Section 17200 z~~ ... E ....;! 'I' 0: claims further fail because their allegations do not support a claim of either "unfair" or fraudulent" business practices. Moreover, Plaintiffs do not allege in-state conduct or other facts necessary to state a claim under Section 17200. ~ '2 u ;;.. Q ~ Second, Plaintiffs ' breach of contract claims fail because they do not identify either (i) the terms of any particular contract any of the Plaintiffs "" 17 was a party to with Players Inc during the statute oflimitations period , or (ii) how Players Inc allegedly breached such terms. Third, in addition to being time-barred, Plaintiffs ' breach of fiduciary duty claims fail because (i) the alleged relationship between Plaintiffs and Players Inc cannot give rise to any fiduciary duties asa matter oflaw , and (ii) Plaintiffs ' allegations do not support a claim of breach of any such duty. Fourth, Plaintiffs ' unjust enrichment claims fail because their factual allegations do not support such a claim , and because unjust enrichment is derivative of Plaintiffs' failed fiduciary duty claims. Fifth, there is no independent "cause of action" for an accounting under California law. For all of these reasons, and as set forth in the Memorandum , the claims in the SAC against Players Inc should be dismissed with prejudice. Players Inc s Motion to Dismiss the Second Amended Complaint Civ, Action No. CO? 0943 WHA ~~~ ~ ~, .. ! '~ = ~;-.-. ;~= ~ ....;! = :== : Case 3:07-cv-00943-WHA Date: July 6 , Document 87 Filed 07/06/2007 Page 3 of 33 2007 DEWEY BALLANTINE LLP By: /S/ Jeffrey L. Kessler Jeffrey L. Kessler Attorneys for Defendant Players Inc :G 11 ....;! 'I' 8 1"1 Z~~ z... ....;! 'I' 0: ~'2 u ;;.. Q ~ ;f 16 "" 17 Players Inc s Motion to Dismiss the Second Amended Complaint Civ. Action No. CO? 0943 WHA ~ !~ : -; ~-;.!;.~:..= . ~ .... . .... ;'~ . =.- = ~ ____-__------___------_--.-_---.---.-_----_-_.--.--------------.----------------.----.------------.-------------------.--------.---------.----------------------.---.-----------.----_.__ .__ - _,__-. - _...-- _ - -_._--.__ ----- -------.-------------------.----------------------- .----------------------- -------------__-.-__, _ ---- --------- . .---.. . -- - .-. -.- . --.-_ -- _ -_ _ Case 3:07-cv-00943-WHA Document 87 Filed 07/06/2007 Page 4 of 33 T ABLE OF CONTENTS TABLE OF AUTHORITIES --__mmm--m_.m----m_--m----mmm--m--ooommm--_ooo____m___ooo_ooo--mmm_--_m .ii 3 MEMORANDUM OF POINTS AND AUTHORITIES mm_oooooo----m_-----.ooo--mm--m--m.mmm_--m-STATEMENT OF FACTS ---------------------------------------.-------------------------------------------------------------------_----_ THE PARTIES -'--------------------'-----------------"---------------,---,-----------.-------------------.-------------------_--.___ II. THE RED HERRING DOCUMENTS --000000--000_000.000000000_000----000___000--000----000_-------000000--000000000_ 7 ARGUMENT NONE OF PLAINTIFFS' CLAIMS HAS BEEN TOLLED , AND MOST ARE BARRED BY THE APPLICABLE STATUTES OF LIMITATIONS .mm_____ooomooo.m_m-II. 01) PLAINTIFFS' SECTION 17200 CLAIMS MUST BE DISMISSED ooo--mm_--ooooooooommm_ PLAINTIFFS' CLAIMS OF " UNFAIR" BUSINESS PRACTICES UNDER SECTION 17200 MUST BE DISMISSED ooo--.mm----ooo----mm----m_ooooooooo_ PLAINTIFFS HAVE NOT PLED ANY INJURY IN F ACT --_m_m--_m_ooo. ....;! 'I' 8 Z~ E-4 ~' E:; ~:5 B :2 ,t; u ;;.. Q;:;: Q., PLAINTIFFS HAVE NOT PLED AN ACTUAL OR INCIPIENT ANTITRUST VIOLA TION oooooommm--oooooo--mm--ooo--m----m----oooooo--ooomm--, PLAINTIFFS ' CLAIMS OF "FRAUDULENT" BUSINESS PRACTICES UNDER SECTION 17200 MUST BE DISMISSED oooooo--_--m--m_ .15 PLAINTIFFS HAVE NOT PLED ANY INJURY IN FACT.m----_oooooo_ooo PLAINTIFFS HAVE NOT MET THE REQUIREMENTS FOR PLEADING FRAUD UNDER RULE 9(BLm---m--.m_mm----ooooooooo_m_m ..16 PLAINTIFFS' SECTION 17200 CLAIMS MUST ALSO BE DISMISSED BECAUSE THOSE CLAIMS ARE BASED UPON ALLEGED CONTRACTS WITH CHOICE OF LAW CLAUSES SELECTING ANOTHER STATE' S LA W.m__ooo--_._mm_ooomm--m--_ooooooooo----m_m_ .18 PARRISH AND ADDERLEY , AS OUT-OF- STATE RESIDENTS WHO DO NOT ALLEGE ANY IN- STATE CONDUCT, CANNOT STATE CLAIMS UNDER SECTION 17200 000000--000_000--000--000------_000_000--000000000_000-- 23 III. 24 IV. PLAINTIFFS' BREACH OF CONTRACT CLAIMS MUST BE DISMISSED --ooo----.m PLAINTIFFS' BREACH OF FIDUCIARY DUTY CLAIMS MUST BE D ISMIS SED PLAINTIFFS' UNJUST ENRICHMENT/RESTITUTION CLAIMS MUST BE DISMISSED 27 VI. PLAINTIFFS' CLAIMS FOR AN ACCOUNTING MUST BE DISMISSED ooo_oooooo--._._ 28 CONCLUSION -1- Players Inc s Motion to Dismiss the Second Amended Complaint Civ. Action No. CO? 0943 WHA --~ ~.= ~ ~ : ~~ ....;! ,~ : ~ ..-- ! =..;~ ~~== ----.-------.------------.-----------.---------..------.------------.----.-.----.--..--.--------.--.----.----.--.--------.--------_----._-_..------.--- -----..-..--.- . .----.-----.-..--------------------------------------- -.--_._-----..-_ --- _. ----------- - ---- .-----.--.------------- ------------.-----..---.-----------.-.-----.--..---_-- -.-.--.- ------_..._.. - -------------------------------------------------_------_--- - - -__- ---., - -. - - -- - - - -- --- . . - - -- - - -- --- --- --- - -.. -- -.- - - ---- -. - - - .- -- -- - -- -.- - - - -- -- -.. -. - ._ , . ., _ -- -- -- ---- -- Case 3:07-cv-00943-WHA Document 87 Filed 07/06/2007 Page 5 of 33 TABLE OF A UTHORITIES Page Cases Aguilar v. Atlantic Richfield Co. 25 Cal. 4th 826 (2001Lmmm--_ooo---ooo--mm Ancora- Verde Corp, v. Gulf Oil Corp. 846 F. 2d 1382 (9th Cir. 1988) 000..000--000000-- Anheuser- Busch, Inc. v. G.T. Britts Distrib., Inc. 44 F. Supp. 2d 172 (N. Y. 1999L------ Atlantic Richfield Co. v. U, A. Petroleum Co" 495 U. S. 328 (1990).000----_---000'---'000----------- Ball Mem l Hosp., Inc. v. Mut. Hosp. Ins., Inc. 784 F. 2d 1325 (7th Cir. 1986).-----000000000000 :G 11 Bell Atlantic Corp. v. Twombly, 127 S. Ct. 1955 (2007)..000_000000--000000_---'000-- , 6, 9, 14 ~=t') ....;! 'I' z~~ z...E ....;! 'I' 0: Big Bear Lodging Ass n v. Snow Summit, Inc. 187 F. 3d 1096 (9th Cir. 1999)..--000_---------le v. Madi ~'2 u ;;.. Q ~ 492 F.2d 1180 (9th Cir. 1974L-----ooo----mBrothers v. Hewlett-Packard Co. No. C-06- 02254 RMW, 2006 WL 30936 85 (N.D. Cal. Oct. 31 , 2006) 0000-----------,------000-- "" 17 Californians for Disability Rights v. Mervyn LLC 39 Cal. 4th 223 (2006L------------ooommm_--- Careau & Co. v. Sec. Pac. Bus; Credit, Inc. 222 Cal. App, 3d 1371 (1990L---ooo------000Cattie v. Wal-Mart Stores, Inc. No. 06CV0897-LAB (CAB), 2007 WL 3 35582 (S.D. Cal. Mar. 21 , 2007) '000000_000-- .15 , 16 Cel- Tech Commc ns, Inc. v. Los Angeles Cellul ar Tel. Co. 20 Cal. 4th 163 (1999Looo------.mm-----_ooo--- , 12, 13 Chan v. Reddin Bank 29 Cal. App. 4th 673 (1994)----------000000000-Chavez v, Whirlpool Corp" 93 Cal. App. 4th 363 (2001)000000000000000000--Chicago Title Ins. Co. v. Great Western Fin. Co 69 Cal. 2d 305 (1968) --000---000000'----------000000 13 Churchill Village, L.L.C. v. Gen, Elec. Co. 169 F. Supp, 2d 1119 (N.D, Cal. 2000)--- Players Inc ' s Motion to Dismiss the Second Amended Co mplaint Civ, Action No. CO? 0943 WHA ~.~....~~ ~ ~, ;;..= .. ....;! = "= . . ~ ..-- ! =..;~ ~~== -------------------------------------------------- -------------..-------------- ,----------------_----_.. Case 3:07-cv-00943-WHA Document 87 Filed 07/06/2007 Page 6 of 33 Cit of Oakland v. Comcast Co No, C. 06- 5380 CW, 2007 WL 518868 (N.D. Cal. Feb. 14 2007)...000--000--000000--000----- Continental Airlines Inc. v. Mundo Travel Co 412 F. Supp. 2d 1059 (E, D. Cal. 2006)..000000000------000----000_000_000--000000--_000000---000000-----_000--_000-- ..18 Continental T. Inc. v. GTE S lvania Inc. 433 U. S. 36 (1977) --------------------------------------------------------- --------------------------------------------- ..-------, 13 467 U. S, 752 (1984),----- erweld Co . v. Inde endence Tube Co 7C ort S s. v. CNA Ins. Cos. , 10 149 Cal. App. 4th 627 (2007) 000000000----000000----000-----000000000----000_000----000--------_000000--_000--000--000_ Cusano v, Klein 280 F, Supp. 2d 1035 (c.D. Cal. 2003Looo-oooooo-----mm--__ooo_ooo-----m--mm----------.._mm----ooo__ 10 Data :G 11 ate Inc, v. Hewlett-Packard 60 F . 3d Co. 1421 (9th Cir. 1995)000000--000000000000_---000---------000-----------------000000000000--------_000--_--000--000-- on Time Lock Serv. Inc. v. The Silent Watchman Co ~=t') ....;! 'I' 52 Cal. App. 3d 1 (197 5Lm----_ooo----_mm--m--m--m_ooo---..mmm--m---------mm------------------ , 14 z~~ Deitz v. Comcast Co No. C 06- 06352 WHA, 2006 WL 3782902 (N.D. Del hine Software v. Elec. Arts Inc. No. 99 Civ. 4454 AGAS , 1999 WL 627413 (S. Cal. Dec. 21 , 2006)..----000--000-----_----------. ....;! 'I' 0: ~'2 ~ Y. Aug. 18 , 1999)..----000000---------000--- DeVoto v. Pac. Fidelit Ins. Co. 512 F.2d 1264 (9th Cir. 1975) --------_000000000-----------------------_000000000_------------000000---------------000---- "" 17 18 19 Doe v. Texaco Inc. No. C 06- 02820 , 2006 WL 2053504 (N.D. Cal. July 21 2006) '000--000-------------000000_000--_--- ..15 Easter v. Am. West Financial 381 F. 3d 948 (9th Cir. 2004)---_000------------_000000000--------------"000000-------------000--_000000_----------"000000.. Eastman Kodak Co. v. Ima e Tech. Servs" Inc. 504 U, S. 451 (1992),------------------------------------- -----------------------.---- ---- -.._---------------------..---------- --, 15 Emrich v. Touche Ross & Co. 846 F.2d 1190 (9th Cir. 1988) _--000--_-------------_--000000000------_-----_--000_000----000_-----_"'000--000---------_.... 24 27 Fai stein v. Wash. Ener 83 F. 3d Co. 1136 (9th Cir. 1996)_------_000000_000000_000_------000---_000000-------000---_000000000--_000--------000_000----000. an v. Cin lar Wireless LLC No. C, 06-04622 MHP , 2007 WL 708554 (N.D. Cal. Mar. 2 , 2007L_mmm-----------m_m_ No. C 07- 0402 Fole v, Bates PJH, 2007 WL 1430096 (N.D. Cal. May 14, 2007)..000_------000000000-------_ , 12 Freeman v. San Die o Ass n of Realtors 77 Cal. App. 4th 171 (2000).."000--------------000---000000000_-------000--000000--------000000--000---------000_--_ -111Players Inc s Motion to Dismiss the Second Amended Complaint Civ. Action No. CO? 0943 WHA ~ ! ~~ = ~.-;~ ""=~ ;;.. ~= ~- " ... ~ ~. ....;! = == Case 3:07-cv-00943-WHA Document 87 Filed 07/06/2007 Page 7 of 33 Glue- Fold Inc. v, Slauterback Co 82 Cal. App. 4th 1018 (2000) ---_--0000"000000000000----------000000000000000_-----000000000000-----000000--------000000000.. Goodworth Holdin Gre Inc v. Suh Cal. 2002Lmm--m------------mm-------_mm------oooooommm.ooo--mm-- 239 F. Supp. 2d 947 (N. D, v. Albertson s Inc" 1 04 Cal. App. 4th 845 (2003) -------_ :000000--_000--0000000000000---_--_0000000000---------------000---_---0000--000_ , 14 Hal Roach Studios Inc. v. Richard Feiner & Co. No. C 03- 3719 SI, 2003 WL 22682482 (N.D, Cal. Nov. 10, 2003Lmm--------mmm-----oooo.. 7 Hu hes Auto. Inc. v. Mid-Atlantic To ota Distribs. 543 F. Supp. 1056 (D. Md. 1982L_oooooooooo--mm_m----oooooooooomm----ooo..m--m--oooooo--mm_ooooooo ..15 vnh v. Chase Manhattan Bank 465 F . 3d 992 (9th Cir. 2006)0000_000-----000--_000--000000000----0---000_000000----000--0000000000--000000000000--------000.. In re Stac Elecs. Sec. Liti 89 F . 3d 1542 (9th Cir. 1996)..--000_000000000000000--------000--000--_---------000000------000--000----'000000--_000_000------ :G 11 Jefferson Parrish Hos . Dist. No. 2 v. H ~=t') ....;! 'I' 466 U. S. 2 (1984) '------------------------------------_----_--0----0--_----------- ----0-------------------0------------0--_--_----. z~~ z... ....;! 'I' 0: Korea Su Co. v. Lockheed Martin Co Inc. Cal. 2005)..0--000--000------000---0__000-------------000000--0000--_000000-------- 29 Cal. 4th 1134 (2003L----m--m----oooooooooo--_mm----ooooooooo--m--m----ooo--_--mmooooooooom----ooo---ooo--. ~'2 ~ ;f 16 "" 17 Laster v. T-Mobile US 407 F. Supp. 2d 1181 (S. D. , 16 Lut e v, Eskanos & Adler No. C 06-07128 JSW, 2007 WL 1521551 (N.D, Cal. May 21 2007) 0------000000_0000---000000-- 18 McKeever v. Block 932 F.2d 795 (9th Cir. 1991 )---000000000000---------------000000___---------000000--------0000_000000_------000--000_--000---. Inc, v. Lucent Tech. Inc. 120 F. Supp. 2d 842 (N. D. Cal. 2000)..-------000000----------_000_000----------_000--000---0-----000--0000000---000 ..1 8 rint S 19 Medimatch Meinhard v. S ectrum LP. FCD EFB , 2007 WL 1456141 (E. D. Cal. May 16, 2007) --000_000_ ..1 No. CIV. S-07- 00456 7 22 Melchior v. New Line Prods. Inc. .22 , 23 106 Cal. App. 4th 779 (2003) -----000000000--_-----------_000--000_------0--000000----'0000000000_000000----0000000. 24 er v, S rint S ectrum LP. 150 Cal. App. 4th 1136 (2007) -------------000--000000_------------000000-------000_000000_---------_000000-------000--000 Misc. Servo Workers V. Philco-Ford Co 661 F.2d 776 (9th Cir. 1981 ).000000--000-----------0000000000--_--0000000000---_--------000000_---------0000----___------- ..1 7 27 C04- 01661 WHA, 2004 WL 1888769 (N. 28 Newcal Indus. Inc. v. Ikon Office Solutions Inc. Players Inc Nat'l Credit Re ortin Ass Inc. v, Ex erian Info, Solutions Inc. D. Cal. July 21 2004) _----------000000000---000--0000000 ..13 C04- 2776 FMS , 2004 WL 3017002 (N. D. Cal. Dec. 23 , 2004L_ooo--m_--ooo---oooom------lVs Motion to Dismiss the Second Amended Complaint , 15 Civ. 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