NORFOLK, Va. (WVEC) -- The owners of the Norfolk Admirals filed a federal lawsuit against the Norfolk Tides, alleging that the owners of the baseball team misled them in a business transaction last year.
Power Play 1, LLC and Admirals ECHL Hockey, LLC claim that Tides Baseball Club, L.P. misrepresented the costs associated with operating the Admirals hockey franchise.
Tides Baseball Club sold its interests in Admirals ECHL Hockey to Power Play in September 2016.
Paperwork filed in U.S. District Court for the Southern District of New York where Power Play 1 claims that it and Admirals ECHL Hockey suffered losses in excess of $500,000. The lawsuit accuses the Tides' owners of several offenses, including breach of contract, breach of implied covenant of good faith and fair dealing, and misrepresentation/fraud.
The paperwork states, in part:
...but for the Defendant's misrepresentations, Power Play would not have closed on the ECHL Team APA at the ECHL Team Purchase Price. In essence, the Defendant's misrepresentations caused Power Play to over pay for the ECHL Team.
The plaintiffs said they tried to resolve the issue with Tides Baseball Club, but to no avail and that they notified the Tides' owners that they would be following suit.
Tides Baseball Club filed its own documents in federal court saying that it was entitled to a declaratory judgiment that Power Play did not rely on alleged misrepresentations by Tides Baseball Club and that the baseball team's owners were entitled to a declaratory judgment that Power Play did not suffer any damages.
A judge ordered that the parties involved and their attorneys appear at a settlement conference in Norfolk on August 29 "for the purpose of conducting discussions, in good faith, towards a compromised resolution of this case."
13News Now reached out to lawyers for Power Play 1 and Tides Baseball Club as well as the president of the Admirals and the general manager of the Tides.
Attorney R. Johan Conrod, Jr. with Kaufman and Canoles, the law firm representing Tides Baseball Club, provided 13News Now with the following statement:
“We deny the allegations made by Power Play 1 and will vigorously defend ourselves against the claims made in the suits.”
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