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Judge order to block FIFA MasterCard arbitration
FIFA & UEFA - 01 March, 2007
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U.S. federal Judge Loretta Preska had lawyers submit a proposed order to block a Swiss arbitration panel from hearing a dispute that she had already given a ruling on.
Preska had already awarded MasterCard International, Inc., the sponsorship of the next two football World Cups because FIFA did not honor its agreements with the company when it handed the rights to Visa International, Inc.
The orders that were submitted on Tuesday would block the lawsuit that FIFA filed last month in arbitration court in Zurich, Switzerland.
Preska said she planned to issue the order because FIFA was not entitled to a "do -over" of the legal fight that took place before her over the last year.
She said MasterCard, which is based in Purchase, New York, and is America's second-largest credit card company behind Visa, had a right of first refusal after sponsoring the 2006 World Cup in Germany.
An appeal of her ruling is pending before the 2nd U.S. Circuit Court of Appeals.
The judge challenged FIFA lawyer T. Barry Kingham when he told her FIFA was not seeking a second chance in a new venue.
"How can you say that with a straight face?" asked Preska.
Kingham said that it was fair to have two lawsuits pending at the same time with the same witnesses.
"FIFA failed to acknowledge that there is a quantum shift when a judgment is entered," Preska said.
Kingham told the judge FIFA would appeal her ruling of blocking the Swiss arbitration proceeding.
The judge also denied Kingham's request that she stay the effect of the order and said FIFA could rely on the Manhattan appeals court to overturn her decision in MasterCard's favor if she ruled incorrectly.
"If you win on appeal, bingo, you win," she said. "You don't need the pending arbitration to undo what was done by the judgment in this case."
Preska had already awarded MasterCard International, Inc., the sponsorship of the next two football World Cups because FIFA did not honor its agreements with the company when it handed the rights to Visa International, Inc.
The orders that were submitted on Tuesday would block the lawsuit that FIFA filed last month in arbitration court in Zurich, Switzerland.
Preska said she planned to issue the order because FIFA was not entitled to a "do -over" of the legal fight that took place before her over the last year.
She said MasterCard, which is based in Purchase, New York, and is America's second-largest credit card company behind Visa, had a right of first refusal after sponsoring the 2006 World Cup in Germany.
An appeal of her ruling is pending before the 2nd U.S. Circuit Court of Appeals.
The judge challenged FIFA lawyer T. Barry Kingham when he told her FIFA was not seeking a second chance in a new venue.
"How can you say that with a straight face?" asked Preska.
Kingham said that it was fair to have two lawsuits pending at the same time with the same witnesses.
"FIFA failed to acknowledge that there is a quantum shift when a judgment is entered," Preska said.
Kingham told the judge FIFA would appeal her ruling of blocking the Swiss arbitration proceeding.
The judge also denied Kingham's request that she stay the effect of the order and said FIFA could rely on the Manhattan appeals court to overturn her decision in MasterCard's favor if she ruled incorrectly.
"If you win on appeal, bingo, you win," she said. "You don't need the pending arbitration to undo what was done by the judgment in this case."
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