ACC's lawsuit against Florida State will continue in NC, judge rules

By Brian Murphy, WRAL News

A North Carolina judge will allow the Atlantic Coast Conference's lawsuit against Florida State University's board of trustees to proceed in the Tar Heel State, denying the majority of the university's motions to dismiss the case.

North Carolina Business Court Judge Louis A. Bledsoe released his 76-page decision on Thursday. He also denied Florida State's motion to suspend the case and allow a Florida case to move ahead first.

"We are pleased with today’s decision, which confirms North Carolina courts are the proper place to enforce the ACC’s agreements and bylaws," the league said in a unattributed statement. "We remain committed to acting in the best interests of the league's members and will see this process through to protect and advance the ACC."

The court ruled in favor of the ACC because it was the first party to file, Bledsoe wrote, also noting that the "nature of the case and the applicable law strongly favor allowing this matter to proceed in North Carolina."

Florida State filed its lawsuit in Florida on Dec. 22, seeking to reduce the penalties to be paid if a school leaves the league.

But the ACC filed a day earlier in Mecklenburg County, arguing that it did so only "when it became a practice certainty" that the FSU Board planned to file the next day following a meeting.

The FSU Board "asserts that no actual and justiciable controversy existed when the ACC field its complaint," according to the ruling.

"The court finds this argument without merit," Bledsoe wrote, citing previous actions by Florida State and its board. "As of the filing of this action, the FSU Board's initiation of litigation over the Grant of Rights Agreements was unavoidable and a practical certainty."

All league members agreed to grant of rights agreements in 2013 and 2016 that turn over all media rights to the league through 2036. The agreements were meant to keep the conference together and provide stability to ESPN in exchange for the creation of the ACC Network.

Now, the grant of rights and the monetary penalties for violating them have become a major sticking point between Florida State and the league.

Bledsoe denied several other arguments made by Florida State seeking to dismiss certain claims by the ACC, including for breach of contract concerning confidentiality when the FSU board disclosed terms of the league's agreement with ESPN.

Bledsoe ruled in favor of Florida State on one point: a claim for relief for breach of fiduciary duty.

Clemson has since filed a lawsuit against the ACC in South Carolina, seeking to reduce penalties if it chooses to leave the league that it helped found in 1953.