Bowers v. National Collegiate Athletic Ass'n

9 F.Supp.2d 460

Michael BOWERS, Plaintiff, v. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, ACT, INC., NCAA Initial-Eligibility Clearinghouse, Temple University of the Commonwealth System of Higher Education, University of Iowa, American International College, Defendants.

No. Civ. A. 97-2600.

United States District Court, D. New Jersey.

June 8, 1998.

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Barbara E. Ransom, Public Interest Law Center of Philadelphia, Philadelphia, PA, Penelope A. Boyd, Mount Laurel, NJ, Richard L. Bazelon, Bazelon & Less, Marlton, NJ, for Plaintiff, Michael Bowers.

Charles J. Vinicombe, J. Freedley Hunsicker, Jr., John Schultz, Julianne Peck, Drinker, Biddle & Reath LLP, Philadelphia, PA, for Defendant, National Collegiate Athletic Association.

Robert A. Burgoyne, Fulbright & Jaworski LLP, Washington, DC, Nicholas M. Kouletsis, Pepper, Hamilton & Scheetz, LLP, Cherry Hill, NJ, for Defendants, ACT, Inc. and NCAA Initial-Eligibility Clearinghouse.

Mark Schantz, Andrew Ives, Office of the General Counsel, Iowa City, IA, Thomas J. Miller, Attorney General, Gordon E. Allen, Deputy Attorney General, Office of the Iowa Attorney General, Des Moines, IA, for Defendant, University of Iowa.

John B. Langel, Abigail L. Flitter, Ballard, Spahr, Andrews & Ingersoll, Philadelphia, PA, for Defendant, Temple University of the Commonwealth System of Higher Education.

Thomas C. Hart, Ruprecht & Hart, LLP, Millburn, NJ, for Defendant, American International College.

Isabelle Katz Pinzler, Acting Assistant Attorney General, John L. Wodatch, L. Irene Bowen, Philip L. Breen, Daniel W. Sutherland, Disability Rights Section, Civil Rights Division, United States Department of Justice, Washington, DC, Faith S. Hochberg, United States Attorney, Louis J. Bizzarri, Assistant United States Attorney, Mitchell H. Cohen, Camden, NJ, for Amicus Curiae, United States of America.

OPINION

ORLOFSKY, District Judge.

                                Table of Contents
I.   Facts and Procedural History .................................................... 466
     A. Procedural History ........................................................... 466
     B. Michael Bowers ............................................................... 467
     C. The NCAA ..................................................................... 467
     D. Initial Eligibility Status and the Clearinghouse ............................. 467
     E. Bowers' Application to the Clearinghouse ..................................... 468
     F. Efforts to Recruit Bowers .................................................... 469
II.  Standards on Motions to Dismiss and For Summary Judgment ........................ 470
     A. Motion to Dismiss ............................................................ 470
     B. Motion for Summary Judgment .................................................. 470
III. Discussion ...................................................................... 472
     A. The Nature of the NCAA ....................................................... 472
     B. Americans with Disabilities Act (Count I) .................................... 473
        1.  Title II Claim as Against Iowa ........................................... 475
            a. Disability Under the ADA............................................... 475
            b. By Reason of Such Disability .......................................... 476
            c. Qualified Individual with a Disability ................................ 477
        2.  Title III Claim as Against the NCAA, ACT, and the Clearinghouse .......... 479
            a. ACT and the Clearinghouse ............................................. 480
            b. The NCAA .............................................................. 483
                i. Place of Public Accommodation ..................................... 483

                ii. Operates a Place of Public Accommodation and Enjoyment of
                    a Place of Public Accommodation .................................. 485
               iii. Discrimination under Title III ................................... 490
     C. Rehabilitation Act (Count II) ................................................ 490
        1. Disability ................................................................ 490
        2. Program or Activity ....................................................... 491
        3. Federal Financial Assistance .............................................. 492
        4. Otherwise Qualified Individual and Discrimination Solely by Reason
           of Disability ............................................................. 494
     D. New Jersey Law Against Discrimination (Count IV) ............................. 494
        1. Place of Public Accommodation under the NJLAD ............................. 495
        2. Liability under the NJLAD ................................................. 497
     E. Sherman Act (Count III) ...................................................... 497
     F. Contract (Count V) ........................................................... 498
IV.  Conclusion ...................................................................... 499

This case is about Plaintiff's eligibility to participate in intercollegiate athletics during his freshman year of college. The National Collegiate Athletic Association, the governing body of intercollegiate athletics, has promulgated regulations which determine whether a student-athlete is a "qualifier," "partial qualifier," or "nonqualifier," and thereby whether a student-athlete is eligible to compete in intercollegiate athletics during his or her freshman year. Plaintiff, a promising football player, was determined to be a "nonqualifier," and therefore ineligible for intercollegiate football competition during his freshman year of college. Plaintiff then filed this action claiming, among other things, that his status as a "nonqualifier" was assigned in a fashion that discriminates against the learning disabled in violation of several federal and New Jersey statutes, in particular, the Americans with Disabilities Act, the Rehabilitation Act, and the New Jersey Law Against Discrimination.

Complicating this litigation somewhat is the fact that a student-athlete's initial eligibility status is not determined by the particular college or university to which he or she applies for admission. Rather, the National Collegiate Athletic Association, an unincorporated association of many colleges and universities throughout the United States, has adopted regulations which are binding upon its members to determine the initial eligibility status of freshman athletes. In turn, a separate private corporation, ACT, Inc., by contract with the NCAA and upon the payment of a fee by the student and the receipt of certain information from a student and the student's high school, then applies these criteria in order to assign a student his or her initial eligibility status. This web of interactions and relationships among several different entities creates difficulties in applying the ADA, the Rehabilitation Act, and the NJLAD. Compounding these difficulties is the fact that the federal courts which have considered how and to what extent the ADA and Rehabilitation Act apply to the NCAA and its eligibility rules have arrived at different results, or at the same result by radically different paths.

The Complaint filed in this case by Plaintiff, Michael Bowers, alleges claims under the Americans with Disabilities Act, 42 U.S.C. §§ 12101 et seq. (Count I), section 504 of the Rehabilitation Act, 29 U.S.C. § 794(a) (Count II), the Sherman Act, 15 U.S.C. §§ 1 et seq. (Count III), the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1 et seq. (Count IV), and a claim for breach of contract under New Jersey law (Count V). Defendant, the National Collegiate Athletic Association, has moved to dismiss the ADA, Rehabilitation Act, LAD, and Sherman Act claims or, in the alternative, for summary judgment on these claims. Defendants, ACT, Inc. and the NCAA Initial-Eligibility Clearinghouse, have moved to dismiss all five counts alleged in the Complaint or, in the alternative, for summary judgment on these claims. Finally, Defendant, the University of Iowa, has moved to dismiss the ADA, Rehabilitation Act, and Sherman Act claims or, in the alternative, for summary judgment on these claims.

For the reasons set forth below, the ADA claim (Count I) will be dismissed with prejudice as to ACT, Inc. and the NCAA Initial-Eligibility Clearinghouse. The Sherman Act claim (Count III) will be dismissed with prejudice as to ACT, Inc., the NCAA Initial-Eligibility Clearinghouse, the NCAA, the University of Iowa, as well as the non-moving Defendants, Temple University of the Commonwealth System of Higher Education and American International College. In all other respects, Defendants' motions will be denied.

I. Facts and Procedural History

A. Procedural History

On May 23, 1997, Plaintiff, Michael Bowers ("Bowers"), filed a Complaint in this Court alleging that Defendants, the National Collegiate Athletic Association (the "NCAA"), Cedric Dempsey ("Dempsey"), the Executive Director of the NCAA, the NCAA Initial-Eligibility Clearinghouse (the "Clearinghouse"),¹ and Calvin Symons ("Symons"), Managing Director of the Clearinghouse, violated the Americans with Disabilities Act, 42 U.S.C. §§ 12101 et seq. (the "ADA"), section 504 of the Rehabilitation Act, 29 U.S.C. § 794(a), and the Sherman Act, 15 U.S.C. §§ 1 et seq. See, e.g., Compl. ¶¶ 77-137.

On June 6, 1997, pursuant to Rule 65 of the Federal Rules of Civil Procedure, Bowers moved for a preliminary injunction on the ADA claim. After the motion was filed, I instructed the NCAA to determine, on an expedited basis, whether Bowers was entitled to a waiver of the initial eligibility requirements pursuant to section 14.3.1.7 of...