Rams must provide season tickets or refunds on deposits for St. Louis PSLs, judge rules

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12intheBox

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http://www.stltoday.com/news/local/...7d.html?utm_source=dlvr.it&utm_medium=twitter

The Rams must grant season tickets to some people who bought personal seat licenses while the NFL team was in St. Louis, PSLs that are still valid despite the team’s move to Los Angeles, according to a district court ruling issued Wednesday.

The Rams must also refund deposits for others who bought PSLs, though a district judge was unable to determine an amount for those deposits.

Three different parties have sued the Rams regarding the more than 46,000 people who bought PSLs before the team left for Los Angeles in January. Some plaintiffs paid as much as $1,000 for the licenses, which grant the right to buy season tickets.

Two of those suing parties, Envision, LLC and Richard Arnold, argued that their PSLs are still valid despite the Rams’ relocation and that they have the right to buy season tickets in Los Angeles. The Rams argued that the contracts were terminated by the move.

The third suing party, Ronald McAllister, argued the Rams in effect terminated their contracts with PSL holders when they relocated, and PSL holders therefore deserve refunds on their deposits, based on the contract language.

A spokesperson for the Rams could be reached for comment Wednesday night.

District Judge Stephen Limbaugh, Jr. based his ruling on the fact that two different kinds of PSL contracts were issued.

Some were sold by the Rams ticketing agent, FANS, Inc., and the others were sold directly by the Rams.

Both the agreements say that, in the event the Rams play at a venue other than their regular St. Louis stadium, the Rams must “use its best efforts” to provide seats for PSL holders.

The judge ruled that people who bought PSLs from FANS cannot buy season tickets because the FANS contract clearly states a Rams relocation would terminate the contract, thus rendering the “best efforts” language moot.



However, the Rams must “use its best efforts” to provide season tickets for people who bought PSLs directly from the team, because that particular contract never states the PSL agreement is terminated by relocation.

Even though both the FANS and Rams contracts say a PSL holder cannot sue for damages over PSLs, the Rams failed to present that as an argument, or even mention it, in court, according to Wednesday’s ruling.

In the McAllister lawsuit, the judge pointed out that the FANS contract says the Rams have the right to terminate the PSL contract for any reason and refund “part or all” of the PSL holder’s deposit.

However, “deposit” is not defined in the FANS contract. The judge promised to determine the amount of a deposit at a later date.

The Rams now play at the Los Angeles Coliseum. They are expected to play at a new stadium in Inglewood, Calif. starting in 2019.
 

Ballhawk

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Wow! That could get expensive for Stan.
 

Psycho_X

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It's a drop in the water for Stan but good to see some people will at least get some of their hard earned money back after being lied to.
 

FaulkSF

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I have a feeling I'm not going to get invited to renew season tickets for next season as a LA season ticket holder. Guessing the Rams will just settle up monetarily with the defendants this year and make the offer for next year.
 

12intheBox

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I have a feeling I'm not going to get invited to renew season tickets for next season as a LA season ticket holder. Guessing the Rams will just settle up monetarily with the defendants this year and make the offer for next year.

If I were Stan I'd be quietly working out settlements with the STL fans so that I could focus on selling season tickets to LA fans. Doesnt part of your contract currently include the right to renew?
 

Steve3826

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The way I interpret the article is that the LA fans could by PSLs directly from Stl fans at a far lower price than kronke will offer.
 

LetsGoRams

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I just got a call from the Rams. They are offering me a free Sam's Club membership, an LA Rams hat, and a 2-night stay in one of the cabin's on Stan's Texas ranch that they haven't bulldozed yet. No travel included.
 

Loyal

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Well, Stan has the cash, so he can afford this.....But imagine this issue will go to a higher court for a possible different result. (and to make Stl PSL holders spend more money on legal fees)
 

yrba1

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Would suggest focusing on settlements, the legal fees will be much higher for both parties if this goes to a higher court; a lose-lose situation at that.
 

Loyal

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Would suggest focusing on settlements, the legal fees will be much higher for both parties if this goes to a higher court; a lose-lose situation at that.
Maybe...But you can bet that Kroenke and his legal team will be measuring how deep the pockets are on the other side, and whether they can go forward or not...But yeah, a settlement would make the most sense.
 

12intheBox

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Well, Stan has the cash, so he can afford this.....But imagine this issue will go to a higher court for a possible different result. (and to make Stl PSL holders spend more money on legal fees)

[It depends on how much this hampers his ability to sell season tickets while the appellate case is pending. If there are 60,000 new PSLs that would be up for grabs but there are 5,000 members of this class action - does that mean he can only sell 55,000 new PSLs and have to wait on the litigation? If so - a settlement is likely in order.
 

LesBaker

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The way I interpret the article is that the LA fans could by PSLs directly from Stl fans at a far lower price than kronke will offer.

He won't like that very much.

@LoyalRam a local STL firm would probably take this case pro bono just for the publicity/good will. If I was a CEO of a large firm I'd be all over this. Being the firm that took on the NFL and won would be on the letterhead and business cards.
 

VegasRam

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Does anyone seriously believe SK wasn't aware of this (possibility) 4 years ago? :palm:
 

12intheBox

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Does anyone seriously believe SK wasn't aware of this (possibility) 4 years ago? :palm:

I do. People minimize their legal liability all the time. And the Rams lawyers aren't exactly smelling like roses on this one in any respect. Not only did they poorly draft the PSL language (in comparison to FANS), they didn't bring up the clause in the PSL contract that says a PSL holder cannot sue for damages - which means that argument isn't preserved for appeal either. Methinks some lawyers are gonna get fired here soon.

But to your point - even if Stan settles for top dollar with every PSL holder in the class - he still comes out well on top in the long run.
 

Florida_Ram

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Well, Stan has the cash, so he can afford this.....But imagine this issue will go to a higher court for a possible different result. (and to make Stl PSL holders spend more money on legal fees)

No doubt Stan has it. I'm sure he can find those lost funds laying around one of his houses.. He wouldn't have to go any further than the guest room sofa cushion...

raw
 

bluecoconuts

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Well, Stan has the cash, so he can afford this.....But imagine this issue will go to a higher court for a possible different result. (and to make Stl PSL holders spend more money on legal fees)

Of course it will, I'd be shocked if it didn't.

And there are likely plenty of loopholes to get around paying.
 

FRO

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Does anyone seriously believe SK wasn't aware of this (possibility) 4 years ago? :palm:
4 years ago? He took over the team in 2010, since then every possibility was thought out. Good to see the good people stick it to Stan and Kevin. Hope they make out like bandits.