Impact of Second Circuit Ruling on Arbitration
The recent ruling by the U.S. Court of Appeals for the Second Circuit on Brian Flores’ employment discrimination case is beginning to influence arbitration practices in various professional leagues.
Judge Cote Denies Arbitration for Leroy Richardson
On August 18, U.S. District Judge Denise Cote referenced Flores v. New York Giants when dismissing arbitration for former NBA referee Leroy Richardson’s claims against the league. Richardson alleges that the NBA violated Title VII of the Civil Rights Act of 1964 by refusing his request for a religious exemption from COVID-19 vaccinations during the 2021-22 season, leading to his termination in 2022.
Considerations on Arbitration Language
While Cote sided with the NBA on various legal aspects and granted them summary judgment, she did not agree that the case should proceed to arbitration. She cited Flores to underscore that an arbitration agreement should not change substantive rights, but only the method of processing those rights.
Limitations on Private Arbitration for Sports Leagues
The ruling in Flores may limit sports leagues’ reliance on private arbitration. Leagues often prefer arbitration to manage disputes discreetly and engage subject matter experts. However, the Second Circuit determined that even if Flores accepted arbitration, he couldn’t be compelled into a process lacking fundamental protections.
Discrimination Allegations Against NFL Teams
Flores has accused the Denver Broncos, New York Giants, and Houston Texans of racial discrimination during head coaching interviews. He has similar claims against the Miami Dolphins, although those are still subject to arbitration because of his employment contract.
NBA’s Stand on Richardson’s Claims
The NBA refuted Richardson’s allegations, arguing he agreed to an arbitration overseen by Commissioner Roger Goodell. The Second Circuit disagreed, stating that Goodell’s position as commissioner compromises the independence required in the arbitration process, especially given the accusations against him.
Future Considerations for Professional Leagues
While the NBA did not succeed in having Richardson’s case sent to arbitration, it managed to obtain summary judgment on the grounds of undue hardship, given the pandemic’s context. This case highlights the need for pro leagues to reassess their arbitration policies to avoid more disputes landing in court.
