March 30, 2005

D&F Obtains Reversal of $47 Million Award in Sports Agent Battle

On March 30, 2005, Ducote & Frasca scored a major victory for its sports agency client Athletes First, by obtaining a complete reversal of a $47 million judgment that had been awarded in 2003 in favor of rival agency Steinberg Moorad & Dunn.  The litigation was filed after sports agent David Dunn left Leigh Steinberg's firm over a dispute over his employment  and formed his own rival agency, Athletes First, which attracted many professional football clients.

After the district court trial resulted in a $47 million judgment, Ducote & Frasca attorney Joanne Frasca, was brought in as special appellate counsel for Athletes First.  She convinced the Ninth Circuit federal court of appeals that the trial court had committed reversible error by submitting a statutory unfair competition claim to the jury and allowing compensatory and punitive damages to be awarded on this purely equitable claim.  The Ninth Circuit held that this prejudicial error required the entire judgment to be vacated, including the award of punitive damages and attorneys fees, and ordered the case remanded for a new trial.  The appellate court also held that the trial court made prejudicial and erroneous rulings including the unenforceable non-competition clause in Dunn?s employment agreement and the erroneous admission of evidence concerning conduct protected by the litigation privilege under Civil Code Section 47.

Steinberg Moorad & Dunn, Inc. v. Dunn, 2005 WL 712487 (9th Cir.(Cal.) 3/30/05)