Eighth Circuit Rejects NFL Retirees’ Objections to Mediated Settlement Due to Exclusion from Mediation
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Litigation by retired players against the National Football League was consolidated with the active players’ case and sent to mediation, but the retirees were not involved in the mediation to the extent they would have liked, despite the efforts of the mediator to have them included. When the active players reached a settlement with the NFL, the retired players were dissatisfied with only receiving $900 million in additional benefits (over ten years), asserting they could have done better negotiating directly, and sued the National Football League Players Association and active players. A federal district court dismissing the retirees’ litigation and the U.S. Court of Appeals for the Eighth Circuit affirmed. The appellate court explained that the active players could negotiate on behalf of retirees even without their consent, because it is established industrial practice for unions to bargain over pensioners’ rights. Further, notwithstanding suggestions by two NFL owners that an NFL offer would have provided $1.5 billion for retirees, the court noted that retirees do not have the negotiating leverage of active players with the NFL and could not be part of a collective bargaining agreement, so they likely would not have done better.
Eller v. National Football League Players Assoc., No. 12-2487 (U.S.C.A. 8th Cir., September 23, 2013)
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