AP

Arbitrator will referee Dr. J’s suit against brand developer

Nov 28, 2022, 2:58 PM | Updated: 4:27 pm

FILE - Basketball Hall of Famer Julius Erving tips his cap to the crowd as he takes the court durin...

FILE - Basketball Hall of Famer Julius Erving tips his cap to the crowd as he takes the court during halftime of an NBA basketball game between the Philadelphia 76ers and the Cleveland Cavaliers on April 14, 2013, in Philadelphia. A Delaware judge on Monday, Nov. 28, 2022, halted a lawsuit filed by Erving against a brand-development and marketing company, ruling that the dispute must go to arbitration. (AP Photo/Michael Perez, File)

(AP Photo/Michael Perez, File)

DOVER, Del. (AP) — A Delaware judge on Monday halted a lawsuit filed by basketball legend Julius Erving against a brand-development and marketing company, ruling that the dispute must go to arbitration.

The lawsuit by the Hall of Fame player known as “Dr. J” stems from a 2016 agreement to sell a majority interest in his trademark and other intellectual property to Authentic Brands Group LLC.

According to court records, ABG and its controlling member and CEO, James Salter, promised to grow Erving’s brand through new licensing agreements, promotional appearances, and other marketing opportunities.

The lawsuit, which was filed last year, alleges that ABG and Salter failed to devote adequate resources to grow the “Dr. J” brand and focused instead on more profitable brands.

Among specific allegations, the lawsuit argues that ABG wrongfully diverted funds to itself to pay an unauthorized 30% management fee, and used the wrong metric to determine distribution amounts.

ABG filed a motion to dismiss the lawsuit, arguing that the operating agreement requires the parties to arbitrate the dispute.

In his ruling Monday, Vice Chancellor Nathan Cook agreed that, under a dispute resolution provision in the operating agreement, the court cannot exercise jurisdiction until the case is first submitted to an arbitrator.

He also said that, under the Federal Arbitration Act, it was appropriate to halt the lawsuit, rather than dismiss it, pending a decision from the arbitrator.

If the arbitrator determines that the dispute is arbitrable, then the lawsuit will be dismissed for lack of Chancery Court jurisdiction. If the arbitrator determines that the dispute is not arbitrable, the parties may return to the court for further proceedings.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

20 hours ago

Near-total abortion ban in Arizona dates back to Civil War era...

Associated Press

Near-total abortion ban dates back to 1864, during the Civil War, before Arizona was a state

The near-total abortion ban resurrected last week by the Arizona Supreme Court dates to 1864, when settlers were encroaching on tribal lands.

21 hours ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

2 days ago

Speaker of the House Mike Johnson...

Associated Press

House Speaker Mike Johnson says he will push for aid to Israel and Ukraine this week

House Speaker Mike Johnson said Sunday he will try to advance wartime aid for Israel this week, along with funding for Ukraine.

2 days ago

President Joe Biden speaks at a campaign rally Saturday, March 9, 2024, at Pullman Yards in Atlanta...

Associated Press

US shoots down ‘nearly all’ Iran-launched attack drones as Biden vows support for Israel’s defense

Joe Biden cut short a weekend stay at his beach house to meet with his national security team as Iran launched an attack against Israel.

3 days ago

Protesters in Phoenix shout as they join thousands marching around the Arizona state Capitol after ...

Associated Press

Abortion ruling supercharges Arizona to be an especially important swing state

A ruling this week instituting a near-total abortion ban supercharged Arizona's role, turning it into the most critical battleground.

4 days ago

Sponsored Articles

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

Arbitrator will referee Dr. J’s suit against brand developer