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A three-judge panel of the Nevada Supreme Court ruled in favor of the NFL on Tuesday regarding Jon Gruden’s lawsuit against the league.
By a 2-1 vote, the justices ruled that Gruden’s dispute is subject to league arbitration, overturning a district court ruling that his lawsuit against the NFL could move forward. The hearings were held in January before the three-judge panel, not the full court, which consists of seven judges.
The ruling means that barring a successful appeal, the long-running dispute between the league and the former Las Vegas Raiders head coach will be resolved through closed-door arbitration rather than publicly through the legal system.
Gruden seeks public lawsuit in court to expose ‘the truth’
Gruden resigned from his job as Raiders head coach in 2021 after a New York Times report exposed his email exchanges with former Washington Football Team executive Bruce Allen, among others, which showed his repeated use of racist, anti-gay and misogynistic language.
Gruden sued the NFL and commissioner Roger Goodell in 2021, accusing them of conspiring to destroy his career through a “malicious and orchestrated campaign” by leaking those emails. The emails arose from an investigation into the Washington Commanders and the team’s then-owner, Daniel Snyder.
The lawsuit argues that Gruden was the target of the alleged leaks and that there is “no explanation or justification” why the correspondence of others in the league was not exposed. Gruden had previously promised that “the truth will come out” regarding other unnamed people in the NFL.
NFL seeks arbitration behind closed doors
The NFL has since made multiple attempts to quash the lawsuit, arguing that a clause in Gruden’s contract with the Raiders requires him to seek a dispute resolution through arbitration. Gruden’s attorneys have argued that the clause does not apply because he is no longer an employee of the Raiders and that his dispute is with the NFL, not the Raiders.
In 2022, Nevada Eighth Judicial District Court Judge Nancy Allf denied the NFL’s attempt to dismiss the lawsuit and ruled that the case could continue in open court.
NFL spokesman Brian McCarthy dismissed Gruden’s lawsuit as frivolous after the district court ruling and vowed to appeal.
“The allegations are completely without merit and the NFL will vigorously defend itself against these claims,” McCarthy’s 2022 statement reads.
What Tuesday’s Supreme Court ruling says
Tuesday’s ruling by the three-judge panel overturned the district court’s ruling.
Judges Elissa F. Cadish and Kristina Pickering ruled by majority.
“Public policy favors the application of a valid arbitration clause and we cannot say with positive assurance that the arbitration clause of the NFL Constitution is not susceptible to interpretation by the NFL Parties.” The 19-page ruling says. “Therefore, we conclude that Gruden must submit to arbitration under the arbitration clause of the NFL Constitution.”
Judge Linda Marie Bell voted in the minority and issued a dissenting opinion, arguing that the arbitration clause does not apply to former employees.
“I disagree with your conclusion because the facts of this case do not support the survival of the clause beyond the end of Gruden’s employment,” bell wrote.
According to ESPNGruden’s attorney, Adam Hosmer-Henner, vowed to appeal the decision to the full seven-justice Supreme Court.
“The panel’s split decision would leave Nevada as an outlier where an employer can unilaterally determine whether an employee’s dispute should go to arbitration and would also allow the employer to resolve the dispute as an arbitrator,” Hosmer-Henner said.
The NFL did not issue a public response immediately after the ruling.