LIV Golf has won a rare antitrust case against the PGA Tour.
Judge Beth Labson Freeman, in the U.S. Northern District of California Court, ruled that Saudi Arabia’s Public Investment Fund (the Kingdom’s sovereign fund) and its governor Yasir al-Rumayyan are both subject to depositions and discovery in the United States. This was a major blow for LIV’s Legal team.
LIV’s attorneys then appealed to the United States Court of Appeals of the Ninth Circuit to further delay the process of discovery. On Wednesday, Judge Freeman granted Al-Rumayyan and the PIF’s motion to stay discovery pending appeal. According to Jodi Balesam, professor at Brooklyn Law School, and former NFL counsel, this decision could take up to 1-2 years.
The Tour argued that it was unfair to be forced to comply with discovery when the PIF and Al-Rumayyan could push the issue to the future, and suggested LIV lawyers might benefit from “gamesmanship.”
Judge Freeman denied the PGA Tour’s cross-motion to stay all discovery.
Memories fade and documents can disappear with time. The court’s filing stated that a complete halt to discovery would be detrimental to the litigation process. Judge Freeman called the Tour’s claim of gamesmanship “unconvincing.”
The PIF is the main financier of LIV Golf. The Saudi Arabian government created the wealth fund in 1971 to allow it to invest in projects and companies. It is estimated to be worth more than $650 billion.
The Tour then filed an answer against LIV. The court ruled in February that the Tour can add Al-Rumayyan and the PIF as defendants to its countersuit. This drags the financiers further into the judicial weeds.
What’s next? Antitrust cases do not only investigate a single company but an entire industry. The discovery process is often long and tiring. This case, which has a trial date of Jan. 8, 20,24, is still in its early stages. The Tour has proposed a trial date of November 12, 2024, while LIV proposes a May 17, 2024.
PIF and Al-Rumayyan may comply if they lose their appeal and provide documents and depositions, even though LIV’s lawyers claimed previously that participating in depositions was against Saudi Arabian law. The ramifications of complying could negatively impact the PIF’s investments in the States. Al-Rumayyan, does he want to address questions regarding the PIF’s motives? LIV Golf is a sport that has been used by Saudi Arabia for years to cover up its human rights record. It’s unlikely.
The court could issue a contempt ruling, leading to fines and sanctions that could completely undermine LIV’s case.
There has not yet been a decision on the revised trial deadlines, but comments made in previous filings indicate that the case could be delayed if the discovery is delayed. We will continue to wait until then.
By: Adam Woodard
Title: Judge grants LIV Golf stay of discovery pending appeal, rules against PGA Tour in latest filing
Sourced From: golfweek.usatoday.com/2023/05/18/liv-golf-news-pga-tour-lawsuit-discovery/
Published Date: Thu, 18 May 2023 16:44:57 +0000
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