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Nevada Supreme Court Bars NFL Arbitration in Jon Gruden Suit

By deeming the league’s arbitration clause unconscionable for former employees, the ruling clears the way for Gruden’s case to proceed in public as the NFL prepares to appeal.

5/20
Aug 29, 2021; Santa Clara, California, USA; Las Vegas Raiders head coach Jon Gruden walks onto the field before the start of the game against the San Francisco 49ers at Levi's Stadium. Mandatory Credit: Cary Edmondson-USA TODAY Sports/File Photo
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Overview

  • A full seven-justice panel reversed an earlier decision by a 5-2 vote, finding that the NFL Constitution’s arbitration clause is unconscionable for former employees because it lets the commissioner arbitrate his own conduct and be amended without notice.
  • The ruling focused solely on forum, leaving unresolved Gruden’s allegations that the NFL and Commissioner Roger Goodell orchestrated a leak of his 2011–2018 emails containing racist, misogynistic and homophobic language.
  • Gruden is seeking monetary damages for lost coaching opportunities and endorsements after he resigned as Raiders coach in 2021 when the emails were published during the Washington Football Team investigation.
  • The NFL has signaled its intent to request a rehearing in Nevada and may petition the U.S. Supreme Court, and if those efforts fail the case will return to district court for discovery and possible public trial.
  • Observers say a public proceeding could expose internal NFL handling of sensitive materials and influence future challenges to broad arbitration clauses in employer agreements.