Belkin's Absurdity.

[Nurlman]

Here's the thing. Let's say it is as Steve Belkin says it is - that as the appointed NBA Governor, it is his right and duty to approve/deny all NBA business. Further, it is his call, and his call alone.

WHY TAKE A VOTE? If it's Steve's call and Steve's call alone, why don't the rest of us (p'nrs) go home?

We'll smoke cigars, enjoy each others' wine cellars and discuss art. We'll visit with our wives and decide on a smashing vacation spot. We'll discuss how much we're pledging to the symphony this season.

But there's no reason to discuss Hawks business, Steve's got that covered.

[CWSD]

Your right on target. The reason Belkin's position doesn't make sense is because the role of the Governor was never to be the final say or gate-keeper of the Hawk's business. The decisions for the team are made by a majority of the owners, or by the GM if he given such authority. The Governor's job is simply to carry out the wishes of the team's management. Belkin is using this loophole/technicality, against the spirit and intent of the agreement, to improperly inflate his authority.

[Lascar78]

You know what's even more absurd? There's a lawsuit among owners of the Atlanta Hawks, and the proceedings will take place in BOSTON. So are our Atlanta owners going to fly to Boston for this, or will it all be handled by lawyers? Belkin is making himself very hateable.

[Seano]

I'm assuming that's because Belkin is a Boston native, and Boston is where he originally filed the order of restraint. I would bet my last dollar that all the owners who are able to attend will be there. They'll have a chance to get their say before da Judge, so it'd be kind of silly to not take advantage of that opportunity and leave it all in the hands of the lawyers.

[CWSD]

The TRO was filed in Boston, so unless the owners want to prolong the matter by arguing improper jurisdiction, they will just accept Massachusettes. For contract disputes the jurisdiction is generally either in the state where the contract was entered into, or where one of the parties resides. Often in contracts, the jurisdiction for subsequent disputes is agreed upon and made part of the contract.

I don't know if the owners will be there, unless they are needed as witnesses. Generally, the parties to a lawsuit do not attend motion hearings because they deal primarily with issues of specific law, and are not open forums. Sometimes they come along just to watch, but unless they are there to testify regarding a relevant fact, the Judge could care less what they have to say.

The burden is on Belkin tomorrow. In a TRO hearing, Belkin must persuade the court on 2 issues: 1, that the Judge must keep the TRO in place to maintain the status quo or he will irreparably harmed, and 2, there is a likelihood Belkin will prevail on the underlying dispute.

It is obvious if the TRO is lifted that Belkin will be harmed because he will be removed as Governor. It is not clear he will win on the underlying issue, which is whether the owners are authorized to remove him from his position.

I don't mean to spout off a bunch of legal junk, but I thought y'all might be interested in what is going down tomorrow and how it might shake out.

[mrhonline]

CWSD, how do you think things will turn out?

[Spiral]

Thanks for posting. I think you & Nurlman have brought alot to the board in recent times. Thanks for all the insight.

[TheDude]

agree with Spiral...what do you two law guys think is going to happen in your personal opinion?

[TnDawg]

Not to argue with you, but I have a question on this.

"obvious if the TRO is lifted that will be harmed because he will be removed as Governor"

Just because is removed as Gov, the only harm I see will be to his ego. He has already done irreparable damage to his own reputation. Do anyone actually believe that anyone involved with the NBA at the executive/agent levels wouldn't side with BK and the other Owners. Unless he is removed the team could not be competive against its peers.

On the other side, if he is allowed to remain in place he will be doing unmeasurable damage to the worth of the team. The fragile fanbase will be worsened, which means all of the owners will likely stand to lose millions. So the question I see is this, which holds the higher value. Peckerhead's ego or the overall value of a franchise.

[Nurlman]

See CWSD's thread for a good procedural synopsis around the steps in this temp restraining order/preliminary injunction/permanent injunction process, which is an equitable action. Note that equitable actions are different from legal actions - you're trying to persuade the court for relief other than money - in this case, removal of one member of the LLC as NBA Governor because of the irreparable harm to him such removal would cause. The other group will argue the opposite, specifically, that not removing him will result in irreparable harm to the remaining partners. I think I could fashion a persuasive argument on behalf of the non-Belkins, but you're going to need a judge to play along.

I think it's about 50/50 how this goes tomorrow. Without seeing the LLC governing agreement and the NBA Governance provisions, it's tough to know where the vulnerable spots are in the language. I'm certain both sides will pound at that agreement.

I could very well see a judge with a very conservative philosophy saying that the language of the agreement clearly doesn't allow for removal in these circumstances. I could also see a judge recognizing the absurdity of Belkin's position in light of the irreparable harm upholding the TRO would do to the LLC.

As an aside, as a Hawks fan, I'd like to find the lawyer who drafted the agreement and beat him to a pulp, if the "removal of Governor" provisions are as limited as they appear to be. Somebody did a poor job of drafting.

Hopefully, the Washington and Atlanta groups are lining up capital right now to buy this clown out, but I'm sure he's got some insane valuation in mind, and as Stan Kasten said, Belkin's waited 20 years to get into the NBA, he's not likely to go away anytime soon.

[Lascar78]

Quote:

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I'm assuming that's because Belkin is a Boston native, and Boston is where he originally filed the order of restraint. I would bet my last dollar that all the owners who are able to attend will be there.

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I understand that, but I'm saying that it says something that the lawsuit among hawks owners' is taking place in Boston. I'm sure he could have filed in Atlanta if he wanted to. He is taking every step to make it clear that he really is the bad guy.