The Nevada Supreme Court rules that Gruden’s case against the NFL must be submitted to arbitration

Jon Gruden, former head coach of the Las Vegas Raiders, faces the prospect of pursuing arbitration proceedings against the NFL and commissioner Roger Goodell following a May 14, 2024 Supreme Court order that reversed a lower court ruling. Gruden’s claims stem from his forced resignation in October 2021 following the revelation of emails containing racist and derogatory language. Despite reaching a settlement with the Raiders, Gruden filed a lawsuit against the NFL and Goodell for interference with his contract.

Initially, the NFL tried to force arbitration based on provisions in Gruden’s employment contract that bound him to the league’s rules and granted the commissioner the authority to arbitrate disputes detrimental to the NFL. However, the court denied the request, citing concerns about bias and the scope of the arbitration provision, which specifically addressed disputes between Gruden and the Raiders, which were not part of the lawsuit.

The Nevada Supreme Court reversed the trial court’s decision, ruling that Gruden had not proven that the settlement with the Raiders nullified the arbitration clauses. The Court also determined that Gruden’s claims fell within the scope of the arbitration provision and rejected arguments of unconscionability. As a result, the case was remanded with instructions to compel arbitration, which may have involved Goodell.

Judge Linda Marie Bell disagreed, arguing that the arbitration agreement did not apply to Gruden since he was no longer employed by the Raiders. She also raised concerns about the inclusion of the NFL Constitution in Gruden’s contract, suggesting it was procedurally unconscionable due to its length and the manner in which it was imposed on Gruden.

Gruden will now have to decide whether to pursue arbitration with Goodell as the arbitrator, a situation that could present challenges given the potential for bias. However, historical precedent suggests Goodell can appoint a neutral party, as he did in a previous high-profile case involving a player suspension. Gruden’s determination to continue the legal battle, coupled with the investigation into Goodell’s involvement, could increase the chances of a fair hearing on his claims.