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Finkelman v. Nat'l Football League

Citations: 199 A.3d 754; 236 N.J. 280Docket: A-38 September Term 2017; 080501

Court: Supreme Court of New Jersey; January 9, 2019; New Jersey; State Supreme Court

Narrative Opinion Summary

This case involves an appeal concerning a class action lawsuit filed against the NFL over ticket distribution practices for the 2014 Super Bowl. The plaintiff alleged that the NFL violated New Jersey's consumer protection statute, N.J.S.A. 56:8-35.1, which prohibits withholding more than 5% of tickets from public sale. The statute was aimed at ensuring broader public access to event tickets. The plaintiff sought damages under the Consumer Fraud Act, claiming that the NFL's distribution method, which allocated only 1% of tickets to the public via a lottery and the rest to teams and sponsors, constituted unlawful withholding. The District Court dismissed the case, stating the plaintiff failed to state a claim, and the Third Circuit certified two questions to the Court regarding the interpretation of 'person' and 'public sale' under the statute. The Court interpreted 'person' broadly to include entities such as the NFL and considered the lottery sale a public release. However, it concluded that the NFL's distribution did not breach the statute as the tickets were not withheld from public sale. The plaintiff's lack of standing and failure to establish causation led to the dismissal of the claims. The Court's decision emphasized the legislative intent to combat consumer fraud while adhering to statutory limitations on ticket distribution.

Legal Issues Addressed

Application of Consumer Fraud Act

Application: The plaintiff sought treble damages under the Consumer Fraud Act for alleged unlawful withholding of tickets.

Reasoning: He seeks treble damages under the Consumer Fraud Act.

Consumer Protection Statute under N.J.S.A. 56:8-35.1

Application: The statute prohibits withholding more than 5% of tickets from public sale before their general release, which was central to the plaintiff's claim against the NFL.

Reasoning: The case centers on N.J.S.A. 56:8-35.1, a consumer protection statute that prohibits withholding more than 5% of tickets from public sale before their general release.

Court's Ruling on Ticket Withholding

Application: The Court ruled that the NFL's distribution of tickets to other entities did not violate the statute regarding the withholding of tickets.

Reasoning: However, it ruled that the NFL's distribution of tickets to other entities did not violate the statute regarding the withholding of tickets.

Interpretation of 'Person' in Ticket Resale Law

Application: The Court determined that 'person' in section 35.1 includes various individuals and entities beyond ticket brokers.

Reasoning: The Court determined that 'person' includes various individuals and entities and that the sale of tickets to lottery winners qualifies as a public release.

Public Release of Tickets

Application: The sale of tickets through a lottery system by the NFL was deemed a release for sale to the general public.

Reasoning: Additionally, it was determined that tickets sold to winners of the NFL's lottery were considered 'released for sale to the general public' under section 35.1.