Tuesday, August 17

Contracts 101: Examining the Tennessee Titans vs. Lane Kiffin/USC Lawsuit


Disclaimer:  I am neither a lawyer nor a law student. My legal knowledge/insight is limited to my work experience and curiosity.

As you may have heard, a little less than one month ago, on July 26, 2010, the Tennessee Titans of the NFL sued USC and its new head football coach, Lane Kiffin, for 1) Inducement of Breach of Contract and 2) Tortious Interference with Contract. The lawsuit stems from Kiffin/USC's alleged "poaching" of former Titans running backs coach Kennedy Pola, who is now USC's offensive coordinator1. Because fans have not seen many lawsuits like this in sports, let me try to explain, as simple as possible, exactly what is happening.

On February 2, 2010, Kennedy Pola signed an employment contract with the Titans that made him the running backs coach for the team for a one-year term. The contract contained language that prohibited Pola from contacting any other person or entity to discuss potential employment unless Pola was given written consent by the Titans or the NFL Commissioner, Roger Goodell2.

Then, on July 22, Kiffin contacted Pola with the intent of bringing him to USC as the new offensive coordinator. Two days later Pola accepted the position, thereby terminating (breaching) his contract with the Titans.

Now that Pola has left, the Titans claim, among other things:

1. They are "deprived" of an experienced running backs coach less than one week prior to the beginning of training camp;

2. The departure disrupted its season planning and coordinated effort among its coaches;

3. The departure caused potential loss of confidence by its players; and

4. The departure caused extensive monetary losses (salary and benefits paid to Pola since his term began, as well as "future" damage).

Instead of suing Pola for breach of contract, which they were entitled to do3, the Titans sued Kiffin and USC for interfering with Pola's contract and inducing Pola to breach the contract. And yes, this is a legitimate cause of action. Tennessee state law says, and I'm paraphrasing4, you cannot influence someone that has entered into a lawful contract to breach/violate a contract or refuse/fail to perform in accordance to that contract. If you do influence someone in that way, you are liable for three times the amount of damages resulting from the breach of the contract.

If I interpret the law and facts correctly, the Titans do have a case. In their complaint filed in the State of Tennessee, the Titans also try to establish Kiffin as a repeat offender, saying that he induced not only Pola, but that he induced other University of Tennessee coaches (father Monte Kiffin, etc.) during his transition to USC5.

But how strong of a case begs to be determined. Given that less than 5% of all cases go to trial and that new USC Athletic Director Pat Haden wants to clean up the program and smother all controversy as soon as possible, a quick settlement seems likely.

On July 30, Kiffin/USC's attorneys filed to remove the case out of Tennessee state court and into federal court. The thinking here is that Kiffin/USC will be in front of federal judges instead of Tennessee judges who might be partial to the state's sports teams. Whether or not that is a legitimate concern is arguable, but I suppose it's not too much of a hassle for the peace of mind.

I will update you once I hear that Kiffin/USC files an answer.

Side note:  Titans coach Fisher is on record to have said that had Kiffin simply extended the common courtesy and asked the Titans if USC could talk to Pola, the Titans would have granted permission. It's worth noting that Fisher is a USC alum. I'm not sure if Kiffin was aware of that, although it's hard to imagine that he didn't. You'd think if Kiffin were to honor such courtesy that he would do so, at the very least, for another member of the family. Guess not.

Footnotes/Commentary

1Is this considered a promotion for Pola? People seem to think so, but I'm not so sure. While the sheer volume of his responsibilities should increase, and while USC is certainly the most prestigious program in college football, I think it's an overall downgrade. For one, he didn't move to a head coaching position like many past NFL assistant coaches have done (ex:  Charlie Weis). Second, assuming that becoming a head coach is his career goal, does this put him in a better position to reach that end? That's debatable. Considering that Kiffin has assumed this role amidst the NCAA sanctions, that Kiffin is an extremely young head coach, that Kiffin is a member of the Trojan family, and that Kiffin is surrounded by a talented coaching staff, you would think USC is committed to giving Kiffin ample time to develop the program. And if Kiffin succeeds in restoring the program's national dominance, I could see Kiffin at USC for a long, long time. Where else would he go? He has already tried the pros and failed. This is the last stop for him. And while the Titans coaching position has been held down by Jeff Fisher for a long time now,  eventually there has to be a change, especially if the Titans continue to miss the playoffs. I'm not saying Fisher is shown the door soon, but I would bet he is shown the door sooner than Kiffin.

2Paragraph 11(c) of Pola's contract states that Pola would not "under any circumstance solicit discussions or entertain employment with any other person or entity during the [term of employment] unless..given written permission to do so by [the Titans] or by [Goodell]…" and that "verbal consent is inadequate."

3If Pola is guilty of breaching his contract, why doesn't Tennessee go after him? I have heard that maybe the Titans do not want to create a reputation for doing so because that would turn off potential coaches in the future. But how often do coaches actually breach these contracts/clauses? This is the first time I have heard any fuss over something like this, so maybe not very often? If so, I'd sue Pola and tell future coaches that the problem is easily avoidable as long as you honor your agreement. Sounds simple enough to me.

4In legal jargon:  "It is unlawful for any person, by inducement, persuasion, misrepresentation, or other means, to induce or procure the breach or violation, refusal or failure to perform any lawful contract by any party thereto; and in every case where a breach or violation of such contract is so procured, the person so procuring or inducing the same shall be liable in treble the amount of damages resulting from or incident to the breach of the contract. The party injured by such breach may bring suit for the breach and for such damages."

5This is an interesting tactic by the lawyers that represent the Titans. An important part of any case is framing things to the benefit of your argument. By painting Kiffin as a reckless repeat offender, it can only help. It is also interesting that they name the coaches that Kiffin poached from Knoxville because it begs the question, why didn't the University of Tennessee sue USC? Perhaps those coaches did not have clauses in their contracts that prohibited them from soliciting other employment offers? If this was the case, how common are such clauses?

Court Documents (PDFs)

Tennessee Titans' Complaint Against Kiffin/USC, filed July 26, 2010

Kiffin/USC's Notice of Removal to Federal Court, filed July 30, 2010 

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