Sonics case moved to federal court

By Darnell Mayberry
Staff Writer
The court case between the city of Seattle and the Sonics has been removed from Washington state’s King County Superior Court, and the future of the franchise is now in the hands of a federal court judge. Judge Ricardo Martinez of the U.S. District Court for the Western District of Washington, has been appointed to the case. He replaces King County Superior Court Judge Harry McCarthy, who was scheduled to begin hearings for the case on Wednesday without oral arguments. Late Tuesday afternoon, however, McCarthy signed off on the case’s transferal, according to his assistant Judy Hansen.

Under federal law, the Sonics had the right to move the case to federal court based on “diversity jurisdiction,” which allows any dispute between parties from different states to be heard in federal court rather than state court. The Sonics ownership group is from Oklahoma, and the city of Seattle is fighting to keep the team in Washington. The Sonics had 30 days to move the case to federal court from the time Seattle officials filed its lawsuit on Sept. 24.

Seattle officials are arguing that the Sonics should not be allowed to vacate KeyArena until their arena contract agreement expires in 2010. The city also is arguing that the matter can’t be decided by arbitration and must be resolved in court. Attorneys for the Sonics contend the city should not be able to force the franchise to remain at KeyArena if the team fulfills its financial payments for the remaining years of the arena contract. The Sonics also wanted the matter settled through arbitration rather than in court, although it’s unclear whether that still is the team’s preference with the case now in federal court.

The move to federal court might be a small victory for the Sonics, legal experts say. Out-of-state parties often attempt to receive a more impartial judge and jury in federal court than in state court. Since federal court judges are appointed by presidents and are granted life tenure, and state court judges are elected by the general public, federal court judges could be less influenced by voters. Martinez was nominated by President George Bush in October of 2003 and confirmed by the U.S. Senate in June of 2004. A native of Mercedes, Texas and a 1975 graduate of the University of Washington, Martinez had previously served as a U.S. Magistrate Judge for the Western District of Washington for six years and as a King County Superior Court Judge for nine years.

Sonics chairman Clay Bennett has said that he would apply with the NBA for relocation to Oklahoma City if an agreement for a new publicly-funded arena was not reached by Oct. 31. Bennett recently maintained that no progress has been towards a new arena, as he still hasn’t seen any concrete plans that include feasible funding. Although Bennett recently said he would refrain from applying for relocation on Nov. 1 to avoid overshadowing the Sonics’ home opener, he said it would only be a matter of time before he files an application.

Uh oh.

It seems you never appreciate something until you might lose it. Now Seattle can't bear the thought of losing the team, especially as the deadline draws near.

I'm prepared for another roller coaster ride.

The move to federal court might be a small victory for the Sonics, legal experts say. Out-of-state parties often attempt to receive a more impartial judge and jury in federal court than in state court.

This absolutely is a positive for Bennett and the ownership group.

There is no way they'll force the Sonics to play in Key, the only issue will be the settlement amount.

Wow. I didn't think Diversity Jurisdiction would be possible. I surely thought one of the necessary parties on the Sonics' side of the "v" would be Washington-located (which would ruin any shot at diversity jurisdiction).

The Seattle Times article says the city hasn't decided whether to fight the move to Federal Court. But I would think if the judge there signed off on it, the diversity argument has merit. Is that not the case? Is signing off on the request not a big deal since the other party can contest it, or does it indicate the judge agrees with the Sonics' owners argument?

Wow. 08/09 OKC Sonics!!!

The Seattle Times article says the city hasn't decided whether to fight the move to Federal Court. But I would think if the judge there signed off on it, the diversity argument has merit. Is that not the case? Is signing off on the request not a big deal since the other party can contest it, or does it indicate the judge agrees with the Sonics' owners argument?

I can't imagine that Seattle wouldn't have opposed a move to federal court. A state court would at least be perceived to be more friendly to Seattle's interests. The only ground here for Seattle to overcome a move to federal court is that a necessary party which is located in Seattle isn't named on the Sonics' side of the case. Aside from that, I don't see how this'd be questionable.

The only argument the judge has to agree with here is the diversity argument. Other than that, I wouldn't read too much into it.

Midtowner, I knew the diversity argument would come up. I said a long time ago, that it was very smart that Bennett et al incorporated in OKC and NOT IN SEATTLE. I brought this up on the Seattle forums and was discounted by countless people who "thought" they knew what they were talking about.

Now, how this came up is different than I thought. I thought, that Bennett would make a move to federal IF the city won at King County. And surely, such a move would expose the political good ole boy network that does exist in Seattle. It was this very network that every Sonic fan in Seattle was counting on, to 'grant them' the Sonics until 2010. Their claims of, oh now - we got Slade Gorton workin it and it's going to KingCo Superior; case closed - sonics stay.

Well, I always argued that it won't be finalized at KingCo. I even predicted it wouldn't even be heard in KingCo at all. I said, the Sonics are incorporated in OKC so there is NO WAY a Washington court would be impartial to the Sonics, and surely Bennett would be granted a case in Federal court.

Like I said, I expected Bennett to do this later; but it was the KingCo judge - perhaps a very smart move on his behalf - who requested the case immediately go to the feds. Im positive he thought about it, and said - well, I can't rule against the city since Seattle is my county seat and surely this could cost me in the elections. But, if I rule in favor of the city, Bennett will destroy us and our "network" by getting the feds involved in what we have going on. The best thing to do is remove myself from it (and the state), and let the feds decide it.

And surely this move creates a more impartial ground, since we dont elect federal judges; they serve for life. Now, all would be in question are the terms of the lease and whether a municipality can FORCE a business to only conduct business there. I honestly dont think the decision will take that long, especially after reading the so-called lease.

Bennett has so many outs, that it was very very STUPID for the city to even take this to court. Now, at bEST, Seattle will get rent for 2 years and possibly revenue that might have been made from the lux suites. I predict that to be around $5M.

And to think, if the city had sat down with Bennett and 'negotiated in good faith', admitted that we will not build an arena but that we want to be compensated, Im sure the city could have got Bennett to pay at least double that $5M amount - and probably could have also kept the name Supersonics. And surely, such a move would have shown the NBA that Seattle wants them to come back and surely Stern might have agreed to return once we build an arena (and a different franchise is in trouble).

But no.. .... Look how immature our city council was (we call them CLOWN-cil). All thoughout this, they have done NOTHING. And now that elections are closing in, they want to do a tit-for-tat against Bennett, to placate the Fans so they will show up at the polls and vote for them. That's it guys.

In reality, schrewed Businessman that he is, Bennett said - alright, I will proceed with arbitration. Then the city stupidly 'lawyers-up' when they forgot ONE THING. ... all of those past lawyering up and postering were done with SEATTLE BASED organizations; but Bennett aint from Seattle!!!!!

They forgot about that, that Bennett has no idea who Slade 'the Blade' Gorton is or that Bennett could care less what the KingCO powerbase is. The Sonics are OKC based, and they missed that one. .. LOL.

Finally, the city of Seattle is going to get a HUGE slap in the face, that you aren't invincible and that we're nothing more than just another mid-sized city. A huge reality check is being placed, and it is the city who is doing it to themselves, that's the funny part.

this so-called lawyering up has only exposed Seattle for what it is and the good ole-boys here really are nothing in the grand scheme of things. If I were mayor Nickels, I would try to do a 180 here and sit down with Bennett and try to get more settlement. After all, we will still have the Key Arena debt and no primary draw to help pay it off.

For those of you not in the know, the city renovated the old Seattle Center Coluseum (which is part of the 1962 World's Fair that was here), this was done in part to placate the Sonics past ownership. The contract says, a new coluseum was to be built but the city renovated the existing one on the advise of past ownership - who did not want to compete with the NHL. The renovation is now called Key Arena.. so, the city is using this as premise that the Sonics should honor that 15 year lease provision at Key Arena.

My argument is, well, there's nothing anywhere that says the Sonics accepted the renovation as satisfying the 'new arena' clause. Regardless whether past ownership (who was based in Seattle by the way) regardless if they verbally accepted it or the fact that the Sonics have played there, there's NOTHING in writing which indicates the Sonics ever accepted Key Arena.

Furthermore, Bennett has said from day 0, that Key Arena is unacceptable - which further illustrates that this Sonics ownership never accepted Key Arena and surely would argue that the city fulfilled the terms of the lease. And now, the way things are, with I-91 - which virtually prohibits the city from building a new arena unless Bennett agrees to split all of the profit with the city (which aint gonna happen) - there is nothing that will be agreed to that could rectify the lease.

It's October now and surely the feds will be deep into this by the end of November. I expect the decision to come by then (only a month or so from now) which should also coincide with the arbitration decision and the NBA vote.

I also expect all of which to be in favor of Bennett. Get ready for 2008 OKC!

And Seattle, thanks to the arrogance and stupidity of our city leaders, we get a huge slap on the face! A huge reality check - -- well, at least we still have Microsoft. lol

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