Dr. Charles Reid, a law professor at the University of St. Thomas School of Law, recently spoke with the Star Tribune about the canceled sale of the Minnesota men's and women's basketball teams, the Timberwolves and the Lynx to Marc Lore and Alex Rodriguez.
From the story:
According to contract details revealed in the 2021 lawsuit against Taylor by a shareholder opposing the sale, the contract includes an arbitration clause, which states any dispute or controversy would be resolved by binding arbitration and would take place in Minneapolis. Any claim exceeding $5 million would be determined by a three-member arbitration panel.
Arbitration is a procedure for settling private disputes to avoid going to court, said Charles Reid, a University of St. Thomas law professor. A retired judge and lawyers will interpret whether an extension for the final installment was permitted under the rules of the contract between Purple Buyer Holdings LLC, the joint company owned by Lore and Rodriguez, and Taylor Sports Group, a company owned by Taylor, who also owns the Star Tribune.
"What it comes down to is, does Glen Taylor have a right to strict performance?" Reid said. "He's acting as if he does, and the question is whether he does in fact have an expectation of strict performance."
Under those terms, Lore and Rodriguez had to comply to exact expectations as described in the contract, "and you can't be late," Reid said.
