Former ‘Yotes Owners Continue to be Pestered by the NHL

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It seems the National Hockey League still isn’t ready to let one previous franchise owner escape its icy clutches just yet.  In a response brief filed Monday, October 7, 2015, former Phoenix Coyotes owners Jerry and Vickie Moyes requested the Arizona District Court to follow in the footsteps of U.S. Bankruptcy Judge Baum, who deemed most of the money sought to be recovered by the NHL as unsubstantiated back in January.

The Moyes’ brief was filed in response to a supplemental brief the NHL brought to the court near the end of September, where it was argued that the nearly $145 million in attorneys’ fees and obligations sought after were the Moyes’ responsibility following the NHL’s purchase of the franchise in 2009. In opposition, the attorney for Jerry and Vickie Moyes reiterates many of Judge Baum’s conclusions, stating that many of the claims brought by the NHL are preempted or otherwise barred under federal bankruptcy law.  By attempting to skate around the preemption issue, it is argued, the NHL is seeking to recover losses it incurred under a state law theory entitled following the defendants’ petition for bankruptcy in federal court. Such a narrow exception to the preemption rule, however, has already been rejected by the Ninth Circuit, the brief is quick point out. The brief also addresses the issues concerning the NHL’s argument that the former owners were responsible for guarantees subsequent to their ownership of the team, including salary owed to former Coyotes coach and all-time great Wayne Gretzky.

While preemption wasn’t the only argument made by the Moyes, it remains to be seen whether or not the district court adopts any or all of Judge Baum’s Report and Recommendation filed for its consideration.

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