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Tom Koch-Weser

Luhnow lawsuit dismissed

Nothing left to litigate about, apparently.

Did not age well

Former Astros general manager Jeff Luhnow’s lawsuit against the ballclub was dismissed on Friday after both parties “resolved their differences,” severing the final tie between the team and its most successful executive in history.

District Court Judge Kyle Carter granted the motion, which was filed jointly in 125th State District Court on Friday. Karl Stern, the attorney who submitted on behalf of Luhnow, did not respond when asked for further comment. An attorney representing the Astros did not return a request for comment.

Luhnow sought more than $20 million in damages in the breach of contract lawsuit he filed in November. The 54-year-old Luhnow claimed he was the “scapegoat” for a sign-stealing scandal that tarnished Houston’s 2017 World Series title.

[…]

Luhnow’s contract called for “any dispute” in the application of its terms to be resolved by “arbitration by the commissioner or the commissioner’s designee,” but Luhnow’s attorneys argued it was unenforceable in their suit due to commissioner Rob Manfred’s role in Luhnow’s dismissal. Manfred wrote MLB’s investigative findings into the sign-stealing scheme.

Luhnow’s lawyers said it would be a “complete sham” to allow Manfred or his designee in any arbitration hearing and called for an independent arbiter to preside. It is unknown whether arbitration occurred to cause the suit’s dismissal, but lawyers unaffiliated with the case surmised that was always a likely outcome.

“Arbitration is confidential. It is outside the public purview and accompanied by orders that make the proceedings secret,” Michael Lyons, of the Dallas firm of Lyons & Simmons, said in November. “Filing suit is a way for Jeff Luhnow to clear the air from a PR standpoint and get his story out in a way he might not otherwise have been able to do.”

See here and here for the background. I don’t really care what happens to Jeff Luhnow, but I feel like once I start blogging on a topic, I should see it through. Also, mandatory arbitration clauses are bad. I think that about covers it.

More on the Luhnow lawsuit

Because I now have the brain space to think about stuff like this again.

Did not age well

While baseball fans and courtroom voyeurs might long for a public legal showdown between Astros owner Jim Crane and former general manager Jeff Luhnow, attorneys say the more likely outcome of their contract dispute over Luhnow’s firing is a quiet, secretive resolution behind the protective wall of private arbitration.

Three Texas attorneys were united on that point of view Monday after examining the 18-page breach of contract lawsuit filed by Luhnow against the ballclub before Texas 125th District Judge Kyle Carter.

Luhnow alleges that Crane violated his contract by firing him in January after he was suspended for a year by Major League Baseball commissioner Rob Manfred. Crane’s decision, Luhnow says, denied him benefits that include $22 million of his $31 million contract plus bonuses and a guaranteed slice of the ballclub’s profits.

While the bulk of the complaint alleges a plot by the Astros and MLB to scapegoat Luhnow as the villain of the 2017-18 sign-stealing scandal, attorneys say its most critical point is in the 34th of 43 paragraphs, which says Luhnow is required to submit contract disputes to arbitration “by the commissioner or the commissioner’s designee.”

“Jeff Luhnow will have a very difficult time defeating the arbitration agreement clause,” said Rogge Dunn, a Dallas attorney who has represented former Orioles manager Buck Showalter, Texas Tech University and a former Baylor University Title IX oversight director in employment law cases.

Luhnow’s attorneys say it would be a “complete sham” for Manfred to have a key role in arbitrating disputes in which he is a central figure. The lawsuit asks Carter to submit the case to a jury or to appoint an arbitrator of his own choosing.

“His point is that this is an inside deal,” Dunn said. “The commissioner will protect the owner and scapegoat me, and he also gets to appoint the arbitrator, who will know on whose bread is being buttered.”

Mike Muskat, a partner with the Houston firm Muskat, Mahony & Devine, said Texas law is “very favorable toward enforcement provisions,” which decreases the prospect Luhnow can avoid an arbitration proceeding in which MLB gets to pick the arbitrator.

“I’ll give (Luhnow’s attorneys) credit for a creative argument, but the law is pretty solid,” Muskat said. “There’s a pretty high hurdle to avoid arbitration based on the selection of the arbitrator.”

See here for the background, and there’s a copy of the lawsuit embedded in the story. I’ll say this much, if Luhnow turns this into a crusade against mandatory arbitration clauses in employment agreements, even if it’s for the most self-interested of reasons (*), I will regain a modicum of respect for him. He’s right that this kind of forced arbitration is a scam that greatly benefits employers – and businesses in general when we’re talking about other types of service agreements – but the fight needs to be bigger than this. You can do it, Jeff!

(*) Money is very much the motivating factor here, as there’s over $30 million at stake. If the Astros can fire Luhnow for cause, instead of firing him for being a loser, as is the case most of the time when managers/GMs are canned, then they don’t owe him any of the money he was to be paid in his contract. Whatever else you may think of Luhnow, he’s not an idiot.

Luhnow sues Astros

This ought to be entertaining.

Did not age well

Jeff Luhnow sued the Houston Astros for breach of contract on Sunday, alleging that Astros owner Jim Crane and Major League Baseball Commissioner Rob Manfred negotiated penalties for the sign-stealing scandal that enabled the team to paint Luhnow as “the scapegoat for the organization” and fire its general manager “in order to save more than $22 million in guaranteed salary.”

In January, after a two-month investigation into how the Astros violated baseball rules by improperly deploying technology to decode signs in the 2017 and 2018 seasons, Manfred suspended Luhnow and Astros manager A.J. Hinch for the 2020 season. Crane then fired Luhnow and Hinch.

Luhnow’s lawsuit uses quotation marks around the word “investigation” and calls it “a negotiated resolution” between Crane and Manfred “that enabled the team to keep its World Series championship, went to great lengths to publicly exonerate Crane, and scapegoated Luhnow for a sign-stealing scandal that he had no knowledge of and played no part in.”

Manfred later suspended Alex Cora, who was the Astros’ bench coach in 2017 and then became manager of the Boston Red Sox, for the 2018 season. The Detroit Tigers hired Hinch as their manager last week, and the Red Sox re-hired Cora.

Luhnow has not found work in baseball. His suit, filed in Texas district court in Houston, alleges the Astros breached their contract with him because none of the conditions that would be considered as just cause for his dismissal actually occurred.

Yes, the first story appeared in the LA Times. Go figure. The Chron followed a little later with a copy of the lawsuit and some more details.

“The commissioner struck a deal with Crane to make Luhnow the scapegoat of the cheating scandal while absolving Crane, the players and others of responsibility,” the suit reads.

[…]

Luhnow’s lawsuit calls the league’s investigation “deeply flawed.” It paints Director of Advance Information Tom Koch-Weser as the scandal’s “actual ringleader” who, according to the suit, blamed Luhnow “to save his own job.”

Major League Baseball’s investigation included 22,000 text and chat messages to or from Koch-Weser that, according to the suit, Manfred “ignored … as part of the effort to scapegoat Luhnow.” Luhnow is not included in any of the messages, according to the petition.

The petition claims that Koch-Weser was the “only witness to claim that Luhnow mentioned electronic sign-stealing.” Luhnow’s lawsuit calls him a “biased source who has zero credibility.”

“The Astros told Koch-Weser that he could keep his job so long as his actions were sanctioned by his supervisors, including Luhnow,” the suit states.

Koch-Weser remained employed by the Astros throughout the 2020 season.

Luhnow’s lawsuit attempted to demonstrate his adherence to baseball’s crackdown on electronic sign-stealing during the 2017-19 seasons. In Major League Baseball’s report, Manfred excoriated Luhnow for “(failing) to take any adequate steps to ensure that his club was in compliance with the rules.”

You can add this to the season ticket holders’ lawsuit as part of your offseason things to watch. The suit was filed in the 125th Civil Court, so congratulations to Judge Kyle Carter for having this hot potato land on his bench. I have no idea if any of these allegations are true, but I can’t wait to find out more.