Wednesday, March 2, 2005
The opinion in the Miami Dolphins' breach of contract action against former star running back Errick "Ricky" Williams is now available. In the case, an arbitrator (appointed under the collective bargaining agreement with the players) required Williams, who quit football before the end of his contract, to repay some $8.6 million to the Dolphins.
Williams subsequently challenged the arbitrator's decision, claiming that the contract provisions were not liquidated damages provisions but rather were unenforceable penalties. Judge James Cohn, however, held that while the provisions might be a penalty, the arbitrator was within the scope of his discretion in concluding that they were not.
Miami Dolphins, Ltd. v. Williams, No. 04-61422-CIV-COHN, 2005 U.S. Dist. LEXIS 2086 (S.D. Feb. 15, 2005).