******* Posted April 11, 2019 Share Posted April 11, 2019 (edited) https://www.cbssports.com/aaf/news/aaf-2019-two-players-sue-league-alleging-they-were-misled-and-defrauded/ Edited April 11, 2019 by ******* Link to comment Share on other sites More sharing options...
The Bills Blog Posted April 11, 2019 Share Posted April 11, 2019 Good for him. Link to comment Share on other sites More sharing options...
DJB Posted April 11, 2019 Share Posted April 11, 2019 TOGA PARTY! !!!! Link to comment Share on other sites More sharing options...
PetermansRedemption Posted April 11, 2019 Share Posted April 11, 2019 The problem with this is, how do you sue a defunct league? Sure the league signed a 3 year contract with you. The league is no more, no funding, no income. I’m sure they would be more than happy to give you a share of the debt load if you truly want to be part owner. Link to comment Share on other sites More sharing options...
LeGOATski Posted April 11, 2019 Share Posted April 11, 2019 2 minutes ago, Bills2ref said: The problem with this is, how do you sue a defunct league? Sure the league signed a 3 year contract with you. The league is no more, no funding, no income. I’m sure they would be more than happy to give you a share of the debt load if you truly want to be part owner. The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. 1 Link to comment Share on other sites More sharing options...
Irv Posted April 11, 2019 Share Posted April 11, 2019 Getting blood from a stone. Good luck. Link to comment Share on other sites More sharing options...
PetermansRedemption Posted April 11, 2019 Share Posted April 11, 2019 4 minutes ago, LeGOATski said: The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. I highly doubt those brilliant business men didn’t form some type of LLC to abolish their liability. There are very few company types where if it fails you can go after the businessman behind the company. 3 2 Link to comment Share on other sites More sharing options...
ALLEN1QB Posted April 11, 2019 Share Posted April 11, 2019 Sue everybody 1 2 Link to comment Share on other sites More sharing options...
Boca BIlls Posted April 11, 2019 Share Posted April 11, 2019 He didn't take Johnny's advice 1 1 Link to comment Share on other sites More sharing options...
LeGOATski Posted April 11, 2019 Share Posted April 11, 2019 Dundon and Ebersol are named as individual defendants. Both have tons of money. Dundon, in particular, is your stereotypical scumbag businessman. He saw an opportunity to buy the rights to the league's app tech and then screwed the league/players. Straight up business move with no regard to whoever he was ***** over. And in the long run, he's probably fine with paying the settlement, considering the higher gains he potentially will make in the future. Link to comment Share on other sites More sharing options...
KD in CA Posted April 11, 2019 Share Posted April 11, 2019 6 minutes ago, LeGOATski said: The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. Huh??? What bank is signing up for that deal? Unless they were not paid for the weeks they were on the roster, this is a frivolous lawsuit and will be rightly tossed. Schmidt is free to seek employment elsewhere. 1 Link to comment Share on other sites More sharing options...
LeGOATski Posted April 11, 2019 Share Posted April 11, 2019 13 minutes ago, Bills2ref said: I highly doubt those brilliant business men didn’t form some type of LLC to abolish their liability. There are very few company types where if it fails you can go after the businessman behind the company. Even if they made the standard moves to cover their asses, this seems like a favorable situation for the players/coaches/executives. They'll get something out of it, considering how badly they got boned. The league basically straight up lied to them when they constructed these contracts. I assume the lawyers reviewed the contract and concluded that there's some kind of legitimate case here. Link to comment Share on other sites More sharing options...
WotAGuy Posted April 11, 2019 Share Posted April 11, 2019 (edited) 22 minutes ago, LeGOATski said: . I assume the lawyers reviewed the contract and concluded that there's some kind of legitimate case here. This made me giggle. Since when do lawyers need a “legitimate case”? LOL Edited April 11, 2019 by WotAGuy 1 1 Link to comment Share on other sites More sharing options...
Florida Bills Fanatic Posted April 11, 2019 Share Posted April 11, 2019 I seriously doubt that the backers of this league have any personal liability unless they were officers of the company and committed an illegal act causing specific harm to Schmidt. As others have said, the AAF is probably an LLC where the owners are merely stockholders. If the LLC files for bankruptcy, employees (players) usually fall in line with other debt holders (and are usually at the end of the line). It is highly improbable that Schmidt will get anything. Just because an attorney agreed to file a lawsuit, it doesn't mean there is any legitimate enforceable claim. My bet is the owners of the league have more money, better lawyers, and therefore better legal protection in the existing contracts. The whole thing seems to really s*** for the players and coaches that committed a lot of effort to the league. 2 1 Link to comment Share on other sites More sharing options...
mramefa Posted April 11, 2019 Share Posted April 11, 2019 (edited) 8 minutes ago, WotAGuy said: This made me giggle. Since when do lawyers need a “legitimate case”? LOL It depends on their payment contract, which we're not privy to. If the lawyers payment is highly contingent on Colton Schmidt getting paid, then obviously they think there's a case. If the payment is largely hourly, then the lawyers might be taking advantage. In cases like this, it's often the former, so I think there's a good chance the players actually have a case. Edited April 11, 2019 by nrenegar Link to comment Share on other sites More sharing options...
WotAGuy Posted April 11, 2019 Share Posted April 11, 2019 19 minutes ago, nrenegar said: It depends on their payment contract, which we're not privy to. If the lawyers payment is highly contingent on Colton Schmidt getting paid, then obviously they think there's a case. If the payment is largely hourly, then the lawyers might be taking advantage. In cases like this, it's often the former, so I think there's a good chance the players actually have a case. I understand, but I was thinking more along the lines of “legitimate case” being “reasonable legal basis” as opposed to “take a shot and maybe they’ll flinch and settle” 2 Link to comment Share on other sites More sharing options...
Gugny Posted April 11, 2019 Share Posted April 11, 2019 Can Bills fans sue Colton Schmidt? 2 1 Link to comment Share on other sites More sharing options...
billsfan89 Posted April 11, 2019 Share Posted April 11, 2019 1 hour ago, Bills2ref said: The problem with this is, how do you sue a defunct league? Sure the league signed a 3 year contract with you. The league is no more, no funding, no income. I’m sure they would be more than happy to give you a share of the debt load if you truly want to be part owner. The AAF could still have operational assets somewhere. Yes it might not be much money but having an active lawsuit might let the players get a piece of whatever is left in their operations funds. Link to comment Share on other sites More sharing options...
Augie Posted April 11, 2019 Share Posted April 11, 2019 Read the contract. What is in writing wins. Link to comment Share on other sites More sharing options...
JoPar_v2 Posted April 11, 2019 Share Posted April 11, 2019 The players’ contracts with the AAF weren’t guaranteed (much like the NFL.) Link to comment Share on other sites More sharing options...
The Frankish Reich Posted April 11, 2019 Share Posted April 11, 2019 Better headline: "Colton Schmidt hires lawyer to file claim in bankruptcy court." 2 Link to comment Share on other sites More sharing options...
Thurman#1 Posted April 11, 2019 Share Posted April 11, 2019 1 hour ago, Bills2ref said: I highly doubt those brilliant business men didn’t form some type of LLC to abolish their liability. There are very few company types where if it fails you can go after the businessman behind the company. Not that simple, maybe. The guy promised $250 M, then only delivered part of it to the league. He could be found responsible. Bottom line is we just don't know either way. Depends on the contracts and the details. Link to comment Share on other sites More sharing options...
MJS Posted April 11, 2019 Share Posted April 11, 2019 If they didn't put something in these player's contracts to make the contract void if the league folded, they are idiots. They deserve to be sued. Don't think a judge will see it that way, though. Link to comment Share on other sites More sharing options...
NoHuddleKelly12 Posted April 11, 2019 Share Posted April 11, 2019 3 hours ago, WotAGuy said: This made me giggle. Since when do lawyers need a “legitimate case”? LOL Some good some bad. Just as with any other profession we could name. The reality though is that if they only picked up non-legit work, they would struggle to keep the lights on, as there are frivolous litigation sanctions available as a deterrent for an aggrieved party to obtain against that. Not a perfect system to be sure, but it’s not as bad as stereotypes let on. 1 Link to comment Share on other sites More sharing options...
bigK14094 Posted April 11, 2019 Share Posted April 11, 2019 10 hours ago, The Frankish Reich said: Better headline: "Colton Schmidt hires lawyer to file claim in bankruptcy court." I read the league shut down.....that doesn's necessarily mean they filed in bankruptcy court....at least not yet. May do that, though, if they haven't to protect the league assets (whatever that might be) from legal actions like the one being discussed here. I, for one, think the players without a job might be giving the union some heat to negotiate a deal with the league so play might resume. Anyhow, more news to follow...sort of like a soap opera. Link to comment Share on other sites More sharing options...
Mr. WEO Posted April 11, 2019 Share Posted April 11, 2019 12 hours ago, LeGOATski said: The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. Who...Charlie Ebersol? And the guy who chipped in the money ("$250 million") can't be personally found liable for a business that went bust. HE saved it in week 2 actually. The best part is that these guys are claiming that when they signed a 3 year (non guaranteed) contract, they had a reasonable expectation that the league would survive the length of the contract. That's ridiculous. Laughed out of court if they claim this. 2 Link to comment Share on other sites More sharing options...
Freddie's Dead Posted April 11, 2019 Share Posted April 11, 2019 The whole AAF fiasco stinks to high heaven. How pissed would you be if you worked for 8 weeks and didn't get paid? Hope the players, coaches, etc. get everything they're owed. Link to comment Share on other sites More sharing options...
RyanC883 Posted April 11, 2019 Share Posted April 11, 2019 (edited) 12 hours ago, LeGOATski said: The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. I doubt you can breach a non-guaranteed contract, so that claim is out. If he performed services (practice, games, etc) and was not paid, then you might be able to "pierce the corporate veil" and go after the owners, otherwise, he's out of luck. Also, unless he is claiming unpaid wages, he is out of luck in general. You don't have a right to non-guaranteed future wages. And even if a Court found a right to future contractual earnings, the league is bankrupt, and only its assets can be gone after unless gross malfeasance by the owners, which is highly unlikely. Edited April 11, 2019 by RyanC883 1 Link to comment Share on other sites More sharing options...
OldTimeAFLGuy Posted April 11, 2019 Share Posted April 11, 2019 ..looks like many more suits to follow.............. AAF implosion spawns multiple class-action lawsuits Posted by Mike Florio on April 10, 2019, 11:10 PM EDT The AAF is gone, but it won’t be forgotten. Because its name will continue to be involved in litigation, indefinitely. Via ESPN.com, a pair of class-action lawsuits already have been filed against the AAF. One lawsuit, pursued on behalf of all players, was filed in California state court. Another lawsuit, filed by the Birmingham Iron’s director of community relations, was filed in California federal court. https://profootballtalk.nbcsports.com/2019/04/10/aaf-implosion-spawns-multiple-class-action-lawsuits/ Link to comment Share on other sites More sharing options...
Mr. WEO Posted April 11, 2019 Share Posted April 11, 2019 32 minutes ago, Freddie's Dead said: The whole AAF fiasco stinks to high heaven. How pissed would you be if you worked for 8 weeks and didn't get paid? Hope the players, coaches, etc. get everything they're owed. If this actually happened anyone would be pissed. But that didn't happen. Link to comment Share on other sites More sharing options...
Freddie's Dead Posted April 11, 2019 Share Posted April 11, 2019 10 minutes ago, Mr. WEO said: If this actually happened anyone would be pissed. But that didn't happen. The suit said "failure to pay wages". Where did it say they got paid? I re-read the article and didn't see that. Link to comment Share on other sites More sharing options...
Mr. WEO Posted April 11, 2019 Share Posted April 11, 2019 5 minutes ago, Freddie's Dead said: The suit said "failure to pay wages". Where did it say they got paid? I re-read the article and didn't see that. Future wages. They got paid for the weeks that they played. Dundon covered payroll up to the point they pulled the plug. Link to comment Share on other sites More sharing options...
Freddie's Dead Posted April 11, 2019 Share Posted April 11, 2019 4 minutes ago, Mr. WEO said: Future wages. They got paid for the weeks that they played. Dundon covered payroll up to the point they pulled the plug. The article is really unclear about that. It weakens the suit considerably if they got paid for the 8 weeks. Hard to prove damages unless someone was injured in those 8 weeks. Link to comment Share on other sites More sharing options...
Mr. WEO Posted April 11, 2019 Share Posted April 11, 2019 Just now, Freddie's Dead said: The article is really unclear about that. It weakens the suit considerably if they got paid for the 8 weeks. Hard to prove damages unless someone was injured in those 8 weeks. They've been getting paid all along. No one is claiming otherwise. Link to comment Share on other sites More sharing options...
iinii Posted April 11, 2019 Share Posted April 11, 2019 Good luck Link to comment Share on other sites More sharing options...
PetermansRedemption Posted April 11, 2019 Share Posted April 11, 2019 1 hour ago, Freddie's Dead said: The article is really unclear about that. It weakens the suit considerably if they got paid for the 8 weeks. Hard to prove damages unless someone was injured in those 8 weeks. If they didn’t get paid for the 8 weeks that they worked then they should absolutely get paid. Lawsuit should be in their favor easily. Now the actual problem, collecting. They will get in line with a long line of debtors who will want what little assets the AAF has. The investors behind the league will be completely off limits. Link to comment Share on other sites More sharing options...
Buffalo716 Posted April 11, 2019 Share Posted April 11, 2019 The contracts were not guaranteed He is gonna be Schmidt outta luck Link to comment Share on other sites More sharing options...
formerlyofCtown Posted April 11, 2019 Share Posted April 11, 2019 18 hours ago, LeGOATski said: The dudes that found/owned the league still have plenty of money. This kind of thing happens a lot in situations such as this (businesses failing and not fulfilling promises). Bank pays out the settlement and the sued party pays back the bank over time, with interest, I think. Something like that. Yup my Uncle got like 60 bucks from Smith Corona? Link to comment Share on other sites More sharing options...
The Real Buffalo Joe Posted April 11, 2019 Share Posted April 11, 2019 How much money does a punter in a minor league make? It can't be more than what it would cost in the leagues lawyer fees. I'm sure it gets settled out of court somehow? Link to comment Share on other sites More sharing options...
Misterbluesky Posted April 11, 2019 Share Posted April 11, 2019 I'll bet Steve Spurrier got paid up front.He's not complaining. Link to comment Share on other sites More sharing options...
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