Florida State vs. the Atlantic Coast Conference returned to Leon County court on Tuesday morning.
Over two months after the initial April 9 hearing, both FSU and the ACC returned to courtroom 3G on Tuesday, June 18, as the two sides still await a ruling on the conference's motion to dismiss from Leon Circut Judge John C. Cooper.
Both the school and the conference are locked in a multistate battle centering around FSU's potential departure from the ACC and fight over who retains the Seminoles media rights.
In the first hearing,Judge Cooperfelt the ACC's filing against FSUin North Carolinawas an anticipatory filing and felt the motion to stay in Leon County should be denied. In the second hearing, Judge Cooper ordered FSU to file an amended complaint to be more 'clear' in its arguments while also denying the ACC's motion to dismiss FSU's case based on ripeness.
Tallahassee Democrat sports reporter Liam Rooney was in courtroom 3G providing live updates on the hearing, here is what he saw.
Judge Cooper denies three counts, proceedings will continue on paper as over eight-hour hearing comes to an end
Two points the ACC brought forward in its argument for motion to dismiss on failure to state a cause of action stem from FSU's complaint over the $140 million dollar fee to exit the ACC and claim that the conference breached its bylaws and constitution, both were denied by Judge Cooper.
The hearing is set to be completed another day as the over four hours of discussion for the motion to dismiss on personal jurisdiction took up most of the day.
The ACC and FSU have agreed to have the conference file the rest of its complaints on paper, which means the judge will issue a ruling via email to the parties. No date has been given on when to expect a ruling.
This will mark the third day of hearings between the two parties that ended without a final ruling from Judge Cooper.
Court resumes, motion to dismiss on failure to state a cause of action to be discussed
Ray Treadwell is now speaking for the ACC as we enter the motion to dismiss based on failure to state a cause of action discussion.
Treadwell and Judge Cooper discuss the motion, and Judge Cooper takes another break as he says he needs to do more research before proceeding.
After returning to the courtroom, Judge Cooper and Treadwell begin the discussion on the motion to dismiss based on failure to state cause of action, an allegation that the complaint is insufficient.
Judge Cooper denies ACC's motion to dismiss on personal jurisdiction, rules in favor of FSU on issue
After lengthy arguments from both FSU and the ACC, Judge Cooper ruled in favor of FSU on the issue of personal jurisdiction, denying the ACC's motion to dismiss based on personal jurisdiction, which refers to the court's authority to hand out decisions on a person or party in a legal case, a pivotal ruling in the school's legal battle with the conference.
Judge Cooper cited multiple cases, including the venison salami case, a much-used example in the hearings in reference to personal jurisdiction and its implementation in a case. He said that FSU's second amended complaint, which he ordered following the second hearing, provided more clarity on its argument for jurisdiction and met the requirements for his ruling in favor of the school.
"I have found that the complaint effectively alleges that the ACC operates a significant business in Florida," Judge Cooper said.
Judge Cooper said he felt FSU's argument that the ACC is carrying out a business in the state of Florida is the strongest argument it made.
Judge Cooper says he believes that the ACC's affidavit admits that the conference is doing business in Florida by "conducting and producing sports events originating from FSU and Miami home games." He said it authorizes ESPN and other networks to broadcast, and the ACC makes revenue from the broadcasts which qualifies it as a business.
He continued by saying he hasn't seen the percentages of what revenue is paid to member schools in the revenue-sharing plan. Judge Cooper said you don't have to have an office or agency in the state of Florida to be a business, citing the ACC's broadcasting of FSU and Miami home games as 'business.'
Court will resume at 3:30 for the remainder of the motions to be addressed.
Judge Cooper set to rule on personal jurisdiction following a brief break
The ACC's legal team returns to the stand with Paul Huck presenting its response to FSU, saying the school has received all payments owed to them by the ACC and hasn't shown any documents that say otherwise. He argues FSU's claim that the case is about who retains media rights if FSU leaves the conference, saying that's not what the case is.
Judge Cooper asks for a 'five to 10-minute break' to 'clear his head' before he delivers his ruling on jurisdiction.
FSU's legal team ends argument, says ESPN agreement must be determined under Florida Law
Rush ends his argument on the stand by saying the ESPN agreement confidentially must be determined by Florida Law. He argued that no matter which state, Florida or North Carolina, gets the case, the law it must follow needs to be Florida due to the public records laws.
Judge Cooper exits the courtroom for a moment to allow the ACC to formulate a response to what FSU argued as it looks like he is close to giving his ruling on personal jurisdiction.
'It has to start sometime' Judge Cooper urges both parties to enter mediation
Once again, Judge Cooper urges both sides to enter mediation, much like his viewpoints in the first and second hearings. He said both sides know each other's cases and should enter mediation.
"Sometimes mediation starts a process that can ultimately lead to a settlement," Cooper said while acknowledging a settlement isn't guaranteed to happen.
"It has to start sometime."
Rush says he doesn't want to enter mediation with the ACC without having a copy of the ESPN agreement. He said without that he doesn't recommend FSU enter mediation.
Judge Cooper says he doesn't know if the ESPN agreement issue will be solved in his court or another, but he says he understands why the agreement is important to FSU, but also he urges the school to enter mediation with the ACC.
Lunch ends, court resumes with FSU finalizing its argument on jurisdiction
After just over an hour of a lunch break, Judge Cooper returns to the courtroom and restarts the hearing.
FSU legal representative Peter Rush returns to the stand to close his argument on the issue of personal jurisdiction as everyone awaits Judge Cooper's ruling.
Judge Cooper brings up both the Florida Attorney General's lawsuit against the ACC and the appeal filed by the conference in the 1st District Court of Appeals, says he is aware of the cases but asks if the cases but tries to keep himself out of it, bringing them up to highlight the complexity of the suit and issues at hand.
Court breaks for lunch following argument from FSU legal team
Judge Cooper has sent the court into a lunch break, with court scheduled to resume at 1:10 p.m.
During the FSU argument, Rush centered his discussion around the ACC broadcasting games out of Leon County at the campus of FSU. He says that the ACC is conducting activities in Florida, and the broadcast studio is, by definition, an office of a business.
He said multiple times that this case is about the media rights of the home games, and who should own them if FSU leaves the ACC. Rush says the conference brought FSU in on its own accord and did its job by building itself into an 'athletic empire' and becoming a marketable brand. He argues that the ACC hasn't held it's end of the deal.
'It is woefully undervalued' FSU legal team bash media agreement and school valuation
Rush says that the agreements made by the ACC don't properly value the member schools, and FSU, in regards to how much money the schools make and receive from broadcasting contracts.
"It is woefully undervalued," Rush said.
He brings up how the better a football team is, the more money it brings into its conference. He says the ACC hasn't valued its member schools correctly with its current contracts.
Rush says the production and product of FSU athletics make the ACC a business in Florida.
"Your honor that is a business, and it's a big one, and there are two of them in Florida," Rush says, referencing fellow ACC school Miami.
Rush argues that the studio that FSU built is an office for the ACC Network, citing that the ACC Network logo is all over the studio while everyone wears ACC gear. Rush argues that it is an office of a business, and he says that office produces something almost every day, citing the 216 broadcasts of FSU games this year.
Court resumes after brief break, ACC correct prior discussion, FSU takes the stand
One of the primary arguments Judge Cooper and the ACC legal team locked into was about the control ESPN has over aspects of ACC member games, the legal team corrects that those rules only apply to conference championship games, not every ACC member school game in conference and against other conferences.
Peter Rush takes the stand for FSU. He says the ACC and ESPN have broadcasted 216 games in Leon County this year, from studios located on Florida State's campuses. Rush says the ACC's argument that it sold a bundle of rights is 'irrelevant.'
Rush brings up Ohio State as an example, saying if FSU played on the road against the school FSU would have no rights over its team and get no revenue from the game because of the media agreements in place.
Rush brings up the ACC saying it will retain FSU's media rights until 2036 if it withdraws from the conference, and he says this case is about "who owns the rights to FSU home games." Rush says all activities happen in Leon County, and he says the athletics FSU provides for broadcasting, establishes the ACC as doing business in the state.
Debate rages on about media rights and the ACC's business in Florida, Judge Cooper grants 10-minute break
The debate between Judge Cooper and the ACC legal teams continues to surround the conference's media rights and agreement with ESPN.
The question that Judge Cooper is looking for an answer to is can the ACC be considered a business in Florida based on its business dealings with Florida properties, FSU and Miami, and how it gets revenue from ESPN after games are broadcasted in the state.
Judge Cooper asks the ACC about ESPN's ability to control the games, like interviews, team uniforms and control over broadcasting, and asks the ACC how that control because of its media agreements isn't a sign of the conference doing "business" in Florida.
The ACC argues that it has no control over those decisions, and it doesn't equate to them doing business in the state. The conference again brings up that the ACC doesn't sell individual media rights, it sells a "bundle" of media rights of member schools to ESPN.
Judge Cooper puts the court into a 10-minute break following over an hour of debate.
Discussion turns to ACC's 'business ventures' in Florida, media rights brought back into focus
In the specific jurisdiction argument, the conversation has switched back to media rights, the "nub" of this case according to Judge Cooper.
FSU's argument stems from the ACC's business in Florida and the school's belief that its contracts tie them to the state of Florida.
Cooper and Huck discuss FSU's claims that the ACC is tied to Florida through its business dealings, citing the grant of rights and media deals made. The discussion is currently surrounding the contracts with ESPN and Raycom that state the ACC has the right to broadcast FSU home games, and ESPN has purchased the right to broadcast all of the ACC's home games, not just FSU's.
"ESPN has the right to broadcast the games played, whenever and wherever the games are played," Huck says. He continued his argument over the media rights by saying even if FSU played no home games, or all home games, ESPN would pay the conference and the ACC will distribute that money to the ACC members.
Judge Cooper asks about the impact bowl games have on the ACC's agreements and how the grant of rights is interpreted in those situations. Judge Cooper has extended the ACC's time on the stand twice now as he continues to question the legal teams on FSU's argument for personal jurisdiction in this case.
'The ACC is not a Florida corporation,' ACC says it's not tied to Florida in argument for personal jurisdiction
Huck argues, by citing multiple national cases, that the ACC is not a corporation in Florida, and the two member schools in FSU and the University of Miami do not make them a 'resident' of the state.
The ACC continues its argument by once again saying FSU hasn't shown enough to claim personal jurisdiction in this case and that there is no legal document that states the ACC is a Florida property.
"It doesn't have a bank account, property or address in Florida," Huck finishes his argument by listing his reasons to prove the ACC has no ties to Florida other than the two member schools, attempting to quell FSU's case for general jurisdiction in the case.
Before moving on to his arguments about specific jurisdiction, Huck asks Judge Cooper to deny general jurisdiction.
ACC opens arguments about personal jurisdiction
The ACC legal team sends Paul Huck of Lawson Huck and Gonzalez to the stand, and he opens his arguments by bringing up the two types of personal jurisdiction, general and specific, which the conference argues FSU has not shown enough to gain either version of jurisdiction.
Cooper says FSU argues that the ACC is an association and that it is a resident in each state a school resides in. FSU says that it is arguing for general jurisdiction, citing the ACC's business dealings in the state.
Court is officially in session, Judge Cooper opens the hearing with discussion on personal jurisdiction
Judge Cooper has started the hearing, and he begins by reading and accepting a document from the ACC that states there will be no witnesses needed during today's hearing, FSU agreed to the term. The ACC will officially file its document later today, this is a working copy for the judge.
The document is tied to revenue from Fanatics, a sports apparel company, showing a nearly $15,000 check from Fanatics that shows the revenue that the ACC received from the selling of FSU merchandise, with a yearly total of $144,503.97.
"The first hurdle in this track meet, so to speak, is personal jurisdiction," Judge Cooper said. He feels once jurisdiction is ruled, other issues will be able to be ruled on quickly.
Judge Cooper arrives, legal teams shuffle into the courtroom as hearing is set to start
Just about 40 minutes after the initial start time of 9 a.m., Judge Cooper has ushered in the representatives from both the ACC and FSU as the hearing is set to get started.
The hearing has moved from courtroom 3D back to the location of the first two hearings, 3G, following technical issues in the other courtroom.
Florida State, ACC legal teams await start of the third hearing in Leon County
Both groups of legal representatives from the ACC and FSU congregate outside of courtroom 3D as the scheduled 9 a.m. start time for the hearing has hit a slight delay. A court representative said the delay should last about 20 minutes.
Judge Cooper is expected to give his final rulings in today's hearings, two months after the initial hearing in April.
Why is FSU suing the ACC?
The root of the lawsuit stemsfrom FSU's frustration with the ACC's revenue-sharing planand the school's belief that the conference isn't providing the proper financial support to its schools in comparison to the BIG 10 and SEC. At the center of the legal fight is theconference media contracts, grant of rights and agreement with ESPN.
Things came to a boil whenFSU was snubbed from the College Football Playoff on Dec. 3, and the school's board of trusteesapproved a lawsuit against the conferenceon Dec. 22, a day after the conference sued the school.
The ACC sued FSU in a North Carolina courtin order to gain jurisdiction in the case by being the first to file, something that has been highly debated in Leon County court.
Liam Rooney covers preps sports for the Tallahassee Democrat. Contact him via email at LRooney@gannett.com or on Twitter @__liamrooney
