Nevada Supreme Court Upholds Ruling to Move Gruden's Lawsuit to Arbitration
Jon Gruden's bid to have the Nevada Supreme Court reconsider an arbitration ruling related to his lawsuit against the NFL has been denied. The original lawsuit, which Gruden filed in November 2021, accuses the NFL of conspiring to force his resignation from the Las Vegas Raiders by leaking emails containing racist, sexist, and homophobic content. These emails surfaced amid an investigation into the workplace culture of the Washington Commanders, with whom the emails were exchanged between Gruden and former executive Bruce Allen from 2011 to 2018.
Earlier this year, a three-justice panel from the Nevada Supreme Court was split on a decision on May 14. This decision permitted the NFL to transfer Gruden's civil lawsuit from the state court into arbitration. Subsequently, Gruden's request for a rehearing on this matter was denied by the same panel. This ruling effectively ensures that Gruden's claims will be resolved outside of public scrutiny, as mandated by the NFL's constitution.
The decision brings to the forefront key questions about the oversight of the arbitration process. It remains uncertain whether NFL Commissioner Roger Goodell or a designated third-party arbitrator will oversee the proceedings. This ambiguity in the arbitration process has led to some public scrutiny and judicial commentary. One justice remarked, "Allowing Goodell to arbitrate a dispute in which he is a named party would be 'outrageous.'"
The controversy surrounding Gruden's emails and subsequent resignation has been a significant point of contention. Gruden rejoined the Raiders in 2018, signing a lucrative 10-year, $100 million contract. However, his tenure with the team was abruptly cut short, with more than six seasons remaining on his contract. The leaked emails, which instigated his departure, were part of a broader investigation into the Washington Commanders' workplace culture, initially having little to do with Gruden himself.
A Las Vegas judge previously ruled in May 2022 that Gruden's allegations could potentially demonstrate evidence of intentional harm by the NFL. Following this ruling, the NFL appealed to the state Supreme Court, leading to the current circumstances. With the Nevada Supreme Court upholding the move to arbitration, the legal battle is set to proceed away from the public eye, adhering to the private dispute resolution mechanism built into the NFL's governing documents.
The denial of a rehearing by the Supreme Court panel adds a new layer of complexity to Gruden’s legal journey. Moving forward, it remains to be seen whether Gruden will explore further legal options, which might include petitioning the full seven-justice Supreme Court. For now, the arbitration process awaits, shrouded in the confidentiality that Gruden and his legal team were initially keen to avoid.