Court rules in ACC's favor in $52 million lawsuit vs. Maryland - WNCN: News, Weather

Court rules in ACC's favor in $52 million lawsuit vs. Maryland

Posted: Updated:

A North Carolina appeals court Tuesday preserved a lawsuit that could force the University of Maryland to pay a $52 million fee for leaving the Atlantic Coast Conference.
    
A state Court of Appeals panel rejected Maryland's bid to dismiss the lawsuit filed in the ACC's headquarters city of Greensboro. The three-judge panel's unanimous decision means Maryland has no automatic right to a state Supreme Court appeal. But the higher state court could choose to hear an appeal.
    
The ACC sued Maryland after the school said in November it is leaving for the Big Ten Conference. That was about two months after the ACC voted to increase the exit penalty to three times the conference's total operating budget, which the appeals court calculated at nearly $52.3 million.
    
The $52 million fee is the highest penalty ever assessed on a school for leaving an athletic conference and would be nearly equal to the school's yearly athletic budget, Maryland's attorney general's office said in May. The school's athletic department last year cut seven sports teams as it struggled with multimillion-dollar annual losses.
    
Maryland's representative on the ACC's Council of Presidents, which has the authority to alter the conference's governing constitution, voted against increasing the penalty from what the court calculated would have been a fee of about $17.4 million.
    
Despite Maryland's negative vote on increasing the exit fee, "each member, including the University of Maryland, has agreed to be bound by the vote of the Council," Judge Robert N. Hunter Jr. wrote in the appeals court's decision.
    
The university sued the ACC in Maryland in January, calling the amount an illegal penalty. A Maryland judge has put the school's lawsuit on hold until North Carolina courts issue a final judgment. Maryland's ACC departure is scheduled for July.
    
Maryland's attorneys argued in the North Carolina lawsuit that the ACC's lawsuit should be dismissed because the school is an arm of the state, and Maryland and other states enjoy sovereign immunity that protects them from lawsuits. North Carolina's Court of Appeals rejected that argument.
    
___

  • Duke SportsMore>>

  • Duke's Jabari Parker will enter NBA Draft

    Duke's Jabari Parker will enter NBA Draft

    Thursday, April 17 2014 12:56 PM EDT2014-04-17 16:56:32 GMT
    Duke freshman Jabari Parker is entering the NBA Draft, the school announced Thursday.
    Duke freshman Jabari Parker is entering the NBA Draft, the school announced Thursday.
  • Duke's Parker to decide Wednesday on going pro

    Duke's Parker to decide Wednesday on going pro

    Tuesday, April 15 2014 10:57 AM EDT2014-04-15 14:57:34 GMT
    Jabari Parker says he plans to meet with Duke coach Mike Krzyzewski when he returns to Durham, N.C., on Tuesday, and he will decide Wednesday whether to declare for the NBA draft or return to college for his sophomore year.
    Jabari Parker says he plans to meet with Duke coach Mike Krzyzewski when he returns to Durham, N.C., on Tuesday, and he will decide Wednesday whether to declare for the NBA draft or return to college for his sophomore year.
  • Duke's Nick McCrory wins 4th NCAA title in platform diving

    Duke's Nick McCrory wins 4th NCAA title in platform diving

    Tuesday, April 1 2014 12:38 PM EDT2014-04-01 16:38:10 GMT
    Nick McCrory showing off his bronze medal at a welcome home party after returning from the 2012 Olympic games in London.Nick McCrory showing off his bronze medal at a welcome home party after returning from the 2012 Olympic games in London.
    Duke University senior diver and Olympic medalist Nick McCrory won his fourth NCAA title in Division I Men’s Swimming and Diving.
    Duke University senior diver and Olympic medalist Nick McCrory won his fourth NCAA title in Division I Men’s Swimming and Diving.
Powered by WorldNow

1205 Front St., Raleigh
N.C., 27609

Telephone: 919.836.1717
Fax: 919.836.1687
Email: newstips@wncn.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.