Court Preserves Lawsuit Over Maryland Leaving ACC - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Court Preserves Lawsuit Over Maryland Leaving ACC

Posted:

RALEIGH, N.C. (AP)- 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.
 
The ACC sued Maryland after the school said last November it was leaving for the Big Ten Conference. That lawsuit came after the ACC voted to increase the exit penalty to three times the conference's operating budget, which the appeals court calculated at nearly $52.3 million.
 
A state Court of Appeals panel rejected Maryland's bid to dismiss the lawsuit. It was filed in Greensboro, where the ACC is headquartered. 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 $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, saying it doesn't apply to the ACC's claim that the penalty is due because Maryland broke its contract.
 
North Carolina's courts don't allow state officials to claim they don't have to respect contracts, so the sovereign immunity claim "will not be extended to allow defendants to escape a determination as to their rights and obligations under an alleged contract," Hunter wrote.
 
Maryland officials were considering their options after Tuesday's ruling, said David Paulson, a spokesman for Maryland Attorney General Douglas Gansler. University representatives did not return messages seeking comment.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Proposed Regulation Allowing Guns in Delaware State Parks Awaits Hearing in March

    Proposed Regulation Allowing Guns in Delaware State Parks Awaits Hearing in March

    Feb 22, 2018 10:41 PM2018-02-23 03:41:00 GMT
    Thursday, February 22 2018 10:41 PM EST2018-02-23 03:41:39 GMT
    An outline of Killens Pond state park's restricted areas.An outline of Killens Pond state park's restricted areas.
    An outline of Killens Pond state park's restricted areas.An outline of Killens Pond state park's restricted areas.
    GEORGETOWN, Del. - Delaware officials held a public meeting on Thursday night to answer the community's questions about the proposed regulation allowing guns into Delaware State Parks. The Delaware Supreme Court ruled the previous ban on firearms inside sMore
    Delaware officials held a public meeting on Thursday night to answer the community's questions about the proposed regulation allowing guns into Delaware State Parks. More
  • Beebe Plans Multi-Million Dollar Expansion in Millville

    Beebe Plans Multi-Million Dollar Expansion in Millville

    Feb 22, 2018 10:06 PM2018-02-23 03:06:00 GMT
    Thursday, February 22 2018 10:06 PM EST2018-02-23 03:06:32 GMT
    SUSSEX COUNTY, Del.- Beebe Healthcare is building a freestanding emergency department and cancer canter in Millville. Beebe says they plan on breaking ground on the property later in 2018. By 2020, southern Sussex patients won't have to leave the area forMore
    SUSSEX COUNTY, Del.- Beebe Healthcare is building a freestanding emergency department and cancer canter in Millville. Beebe says they plan on breaking ground on the property later in 2018. By 2020, southern Sussex patients won't have to leave the area forMore
  • Blades Water Declared Safe Upon Flushing, Town Holding March 1st Meeting

    Blades Holding March 1st Meeting on Water Contamination

    Feb 22, 2018 9:48 PM2018-02-23 02:48:00 GMT
    Thursday, February 22 2018 9:52 PM EST2018-02-23 02:52:14 GMT
    BLADES, Del.- As Blades' water was declared safe to drink and cook with pending a flushing plan, the town already has plans for its next public meeting on the issue. On March 1st, the town will host a meeting at the Blades Fire Hall to review test resultsMore
    BLADES, Del.- As Blades' water was declared safe to drink and cook with pending a flushing plan, the town already has plans for its next public meeting on the issue. On March 1st, the town will host a meeting at the Blades Fire Hall to review test resultsMore
  • Most Popular VideosMost Popular VideosMore>>

  • Lewes Lightship Being Restored in New Jersey

    Lewes Lightship Being Restored in New Jersey

    A piece of Lewes history is missing. But when she's back, she'll be better than ever. 

    The Lightship Overfalls is currently across the bay in New Jersey, receiving a restoration likened to cosmetic surgery.

    More

    A piece of Lewes history is missing. But when she's back, she'll be better than ever. 

    The Lightship Overfalls is currently across the bay in New Jersey, receiving a restoration likened to cosmetic surgery.

    More
  • DelDOT Proposes to Realign Old Orchard Road in Lewes

    DelDOT Proposes to Realign Old Orchard Road in Lewes

    A new DelDOT project aims to address an area that's had over 100 crashes in the past ten years.

    According to new design plans, DelDOT wants to realign Old Orchard Road to create a new, four-way intersection at the existing light at Savannah and Wescoats Roads. DelDOT engineer John Caruano says the project would cost $4 million in state funds, but solve multiple issues in the area.

    More

    A new DelDOT project aims to address an area that's had over 100 crashes in the past ten years.

    According to new design plans, DelDOT wants to realign Old Orchard Road to create a new, four-way intersection at the existing light at Savannah and Wescoats Roads. DelDOT engineer John Caruano says the project would cost $4 million in state funds, but solve multiple issues in the area.

    More
  • Dover Police Announce Death of Officer

    Dover Police Announce Death of Officer

    The Dover Police Department says one of their own passed away yesterday. Corporal Thomas Hannon's death was a result of medical complications brought on after sustaining a leg injury in the line of duty in 2012.

    More

    The Dover Police Department says one of their own passed away yesterday. Corporal Thomas Hannon's death was a result of medical complications brought on after sustaining a leg injury in the line of duty in 2012.

    More
Powered by Frankly

All content © Copyright 2000 - 2018 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices