The Oakland Raiders filed suit against the National Football League. The Raiders
ID: 338270 • Letter: T
Question
The Oakland Raiders filed suit against the National Football League. The Raiders claimed that NFL management’s wrongful control of the NFL entities resulted in a breach of fiduciary duty and adverse treatment of the Raiders. As part of its investigation, the Raiders wanted to inspect the corporate documents of National Football League Properties, Inc. (NFLP). Each of the 30 NFL teams is an equal shareholder of NFLP and has a licensing agreement with it. NFLP acknowledged that the Raiders club was a shareholder but refused to produce certain documents. According to NFLP, the Raiders did not have the right to inspect corporate documents protected by the attorney-client privilege. The court found that, as a member, director, and shareholder of NFLP, the Raiders had the right to examine privileged documents. NFLP challenged the court’s decision. How do you think the court of appeals decided? Should NFLP be compelled to produce the privileged documents? Why or why not? [National Football League Properties, Inc. v. The Superior Court of Santa Clara County, 65 Cal. App. 4th 100 (1998).
Explanation / Answer
The Oakland Raiders filed suit against the National Football League. The Raiders claimed that NFL management’s wrongful control of the NFL entities resulted in a breach of fiduciary duty and adverse treatment of the Raiders. As part of its investigation, the Raiders wanted to inspect the corporate documents of National Football League Properties, Inc. (NFLP). Each of the 30 NFL teams is an equal shareholder of NFLP and has a licensing agreement with it. NFLP acknowledged that the Raiders club was a shareholder but refused to produce certain documents. According to NFLP, the Raiders did not have the right to inspect corporate documents protected by the attorney-client privilege. The court found that, as a member, director, and shareholder of NFLP, the Raiders had the right to examine privileged documents. NFLP challenged the court’s decision. How do you think the court of appeals decided? Should NFLP be compelled to produce the privileged documents? Why or why not? [National Football League Properties, Inc. v. The Superior Court of Santa Clara County, 65 Cal. App. 4th 100 (1998).
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