ADVERTISEMENT



Google       

Home -> Law Blog Directory -> Legal Commentary Blogs -> Prawfs

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Bookmark

Legal Commentary

: Prawfs

bargaining in the shadow of conflict

By Dan Markel, Ethan Leib, Rick Garnett, Matt Bodie, Paul Horwitz , Steve Vladeck, and Orly Lobel

ADVERTISEMENTS

Quick update to an earlier post on the conflict between the Pittsburgh Pirates (of Major League Baseball) and their first round pick in this year's amateur draft, Pedro Alvarez. Quick recap: the parties had agreed orally sometime around midnight of August 15 -- the deadline for such an agreement to occur -- to a contract, but Alvarez and his agent refused to finalize the deal, claiming that the agreement occurred after midnight. The Players Union grieved the issue of MLB's unilaterally extending the deadline, which appears to have happened in this case, and one day of what was expected to be a long hearing that would extend into the fall took place earlier this month.

The parties to the contract have settled, and may have thereby led to the end of this grievance process. The terms are not radically different from the original agreement: the total money package is greater ($6.3 million), giving Alvarez (and therefore his agent Scott Boras as well) the highest bonus of this year's draft; but it stretches the payment of that bonus out further, to the benefit of the Pirates.  Alvarez has signed a major league contract (the original was not a major league contract), which will speed up the timeline after which Alvarez can become a free agent and can seek arbitration for his salary under the c0llective bargaining agreement; but the expectation is that Alvarez will make the major league team quickly anyway, and if he doesn't, the restructured contract gives the Pirates some protection to retain his services at a relatively low salary in the contract's fifth year. (See the linked article for more details.)

In sum, a good teaching moment: an oral contract, standard within the industry, that may have been voidable because the conditions of its agreement were subject to dispute; then the parties come to a new agreement that in the end is much like their original agreement but it allows each party to save face. Speaking on behalf of Pirate fans everywhere: please, Pedro, be what everyone says you can be and save us from more seasons of misery.

Full post as published by Prawfs on September 22, 2008 (boomark / email).

Bloggers, promote your law blog by nominating your blog for inclusion in USLaw.com's Law Blog Directory and RSS Reader. Benefits described.
Lawsuits and Settlements

Related Searches

























































































































US Law
#1 Online Legal Resource













Your Blog Subscriptions
Subscribe to blogs

10,000+ Law Job Listings
Lawyer . Police . Paralegal . Etc
Earn a law-related degree
Are you the author of this blog? Adding USLaw.com to your Blogroll increases relevance. You qualify to display a USLaw Network badge.
Suggest changes to this blog's description or nominate another for inclusion. Register for updates.


Practice Area
Zip Code:

Contact a Lawyer Now!






0.0143 secs (new cache)