Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: September 15, 2015
The Firm
201-896-4100 info@sh-law.comU.S. District Judge Richard Berman recently vacated NFL Commissioner Roger Goodell’s decision, as an arbitrator, to uphold the four-game suspension of the New England Patriot’s Tom Brady due to what he considered a faulty arbitration process. This decision won’t only affect the way the league and its players interact, it could also change the way arbitration processes work in entertainment.
Some talent-side litigators in Hollywood consider arbitration processes between their clients – directors, writers and actors among others – to be biased toward studios, the Hollywood Reporter explained. This is because the arbitration outfit that often oversees legal disputes in the entertainment business, JAMS, is generally assumed to prefer the studios over the individuals they employ. The for-profit organization is mysterious in that many of the details on cases it helps to work out aren’t exactly public, and there are many of these disputes.
The issue is, like Berman’s ruling that Goodell’s arbitration process was faulty, so too do many believe that JAMS’ own efforts to resolve cases may have problems, due to the fact that the organization may be anxious about losing business from Hollywood studios. Additionally, talent, the media outlet reported, generally has little influence in negotiating arbitration provisions. These factors combine to cost the actors, directors, writers and others millions of dollars annually.
“Every studio requires arbitration,” Neville Johnson, an anti-JAMS attorney, explained to the Hollywood Reporter. “It’s a stacked deck. You can’t win … Generally, there are only three ways to overturn an arbitration ruling. [The arbitrator] has to be drunk, bribed or he won’t let in relevant evidence.”
Johnson went on to call Berman’s decision and its potential subsequent effect on all sorts of future arbitration processes “one of the big issues in the coming century.”
Going back to Deflategate for a moment, Berman didn’t decide that Tom Brady was not “generally aware” of the fact the footballs he was using were underinflated against league regulations, simply that Goodell’s decision to uphold his suspension was flawed. Leading up to the case between Brady and the league over the arbitration decision, there was the contention that Brady may lose due to the fact that judges often defer to arbitrators’ decisions. This, however, could not have been more wrong as evidenced by Berman’s thorough undressing of Goodell’s arbitration process. It indicated that just as much as the arbitrator’s final decision matters, so does the process.
Berman’s decision is likely to give talent-side litigators a confidence boost in future arbitration processes, The Hollywood Reporter noted. If the way JAMS approaches cases is faulty in ways similar to the way that Goodell handled the arbitration between the league and Brady, then the precedent set by Berman could begin to tilt the odds away from studios and back toward neutrality. Then actors, directors, writers, talent-side litigators and everyone else who may have disputes with studios have Brady and Berman to thank.
If you believe you may be involved in a flawed arbitration process, contact a lawyer with knowledge of entertainment law to determine how to shift the scale back in your favor
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman

New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena

No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe

A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel

A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
Author: Donald M. Pepe

Running a business in New Jersey and New York means operating within one of the most legally complex environments in the country. From the moment you form your company to the day you sell it, and every contract, hire, dispute, and transaction in between, business law is present in decisions that look, on the surface, […]
Author: Scarinci Hollenbeck, LLC
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!