StopAction 005/08/2008

MHSAA files final appeal
CINCINNATI — The Michigan High School Athletic Association avoided filing for bankruptcy when it filed a final appeal with the Sixth Circuit Court of Appeals April 29.
The appeal stems from a decade-long civil lawsuit, which resulted in a federal judge ordering the high school sports governing body to pay $7.4 million in legal fees.
If the MHSAA didn’t appeal, it would have given up any chance to fight the fee order, said Kristen Galles, lead attorney for Communications for Equity. Galles also told media outlets that the CFE hired fee counsel lawyers who are presently discussing a settlement with MHSAA attorneys.
In a statement released two weeks after judge Richard Enslen said the MHSAA owed about $4.5 million in fees and $2.9 million in interest, the MHSAA said it was considering an appeal of the District Court’s order and was preparing to file for protection against creditors.
The MHSAA has a net worth of $5,960,911, according to its tax return for the 2006 fiscal year, which would prevent it from possibly filing for Chapter 11 bankruptcy. The appeal is the fifth by the MHSAA since Enslen’s December 2001 ruling. The MHSAA was ordered to change the state’s high school sports season alignment for six sports: girls’ and boys’ golf and tennis and girls’ basketball and volleyball. The original lawsuit claimed discrimination in the volleyball season, which used to be in the winter season. Volleyball has since been moved to the fall and girls’ basketball to the winter.
The final appeal is likely a long shot, because Enslen said in a March press release that the MHSAA should not whine about losing and pay the legal fees. As incentive to do so, he tacked on a $1,000 daily interest rate that continues to accumulate. — J.D.