Valpo, MVC Seek Venue Change in Horizon League Suit

EVANSVILLE - Why did the NCAA Division I Horizon League file a lawsuit in Vanderburgh County?

That is what the defendants, Valparaiso University and Missouri Valley Conference, look to dismiss and transfer for improper venue, according to a memorandum filed on Friday. On June 27, the Horizon League issued a subpoena to Valpo for a breach in contract in failing to provide one-year written notice of its intent to leave for the MVC, which must defend it did not interfere in Valpo's decision on May 25 to switch conferences.

Attorneys for Valpo and the MVC claim Vanderburgh County is not a preferred venue and was filed in bad faith and without cause.

The defendants' attorneys ask the court to dismiss the complaint and transfer the case to Porter County, Indiana, wherein Valpo's principal office resides. The Horizon League filed the case in Vanderburgh because the University of Evansville is a "member and agent" of the MVC.

"Simply having a member institution in Vanderburgh County does not transform the University of Evansville into an arm of the Missouri Valley Conference sufficient to confer preferred venue," read the memorandum submitted by Husch Blackwell LLP attorneys John W. Borkowski and Mitchell A. Margo.

Indiana Trial Rule 75(A) governs venue requirements in Indiana.

The defendants point to T.R. 75(A)(4), which states the preferred venue lies in "the county where either the principal office of a defendant organization is located or the office or agency of a defendant organization or individual to which the claim relates or out of which the claim arose is located, if one or more such organizations are included as defendants in the complaint."

The MVC has its principal office in St. Louis, Missouri, and does not have a branch office where it conducts regular business in Vanderburgh. The Horizon League is relying on the second clause of T.R. 75(A)(4) and the defendants allege no facts assert any type of agency relationship exists or that UE takes any direction whatsoever from the MVC.

"Simply put, Plaintiff is wrong on the law," read the memorandum. "The University of Evansville does not provide Plaintiff with preferred venue because (i) it is not an "agency of defendant" as that term has been interpreted by the Indiana appellate courts; (ii) the claim does not relate to or arise out of the University of Evansville; and (iii) perhaps most importantly, the University of Evansville is not "included as defendant in the complaint."

While the preferred venue may seem trivial, it figures to be an uphill battle for Valpo - a member of the Horizon since 2006.

According to the lawsuit, Valpo proposed and voted in favor of raising their previous conference's exit fee from $50,000 to $500,000 following Butler's decision to join the Atlantic 10 and Loyola Chicago the MVC in 2012. Valpo claims it is not obligated to pay the fee because it was not in the original contract.

A precedent has already been set, though. Also in 2012, Maryland settled with the Atlantic Coast Conference for $31.3 million in exit fees to leave for the Big Ten Conference. Similarly, Rutgers was forced to pay the American Athletic Conference a sum of $11.5 million to leave for the Big Ten.

The suit alleges the MVC, in need of a new member following Wichita State's departure to the AAC, coerced Valpo into joining. However, tampering is difficult to prove and monetary damages are unlikely to be enforced.

There is no exit fee in the MVC. However, Wichita State is expected to give up future MVC distributions for its NCAA men's basketball tournament game victories. The Shockers won five games in the tournament the past two seasons. At roughly $1.6 million per win, that translates to a payout of $800,000 per member over seven years.

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