The tennis federations of Germany and Qatar may seek a trial in Delaware federal court to end a five-year dispute over $18M in legal fees with the ATP if a federal judge does not dismiss the circuit’s demands. The two federations, which own the Hamburg ATP stop, in '08 lost an antitrust lawsuit against the circuit, brought for new scheduling that demoted the tournament’s status. The ATP has a bylaw that requires a member pay legal fees if it loses a lawsuit against the tour. The federations’ position is the bylaw is illegal under U.S. antitrust law.
The federal court judge in '09 agreed, but an appeals court sent it back to him to first clarify whether the bylaw was even legal under Delaware state law. The Delaware Supreme Court recently ruled the bylaw could be legal under certain circumstances, but did not specifically rule on the ATP’s bylaw. The federations in a letter filed in federal court this week wrote essentially that the fee request again should be rejected because it is illegal under antitrust law. In the event Judge Gregory Sleet decides not to dismiss it, the federations asked him to allow discovery and a trial.
“The federations are entitled to reasonable discovery, followed by pre-trial proceedings, and if necessary, a trial on all triable issues,” wrote attorney Rob MacGill, the lawyer who argued the federations’ case in '08.
