California Attorney General Rob Bonta has joined a group of 15 attorneys general in submitting an amicus brief to the U.S. Court of Appeals for the Ninth Circuit. The brief supports current and former hockey players involved in the case World Association of Icehockey Players Unions North America Division v. National Hockey League. The players allege that Canadian junior hockey leagues, which supply talent to the National Hockey League (NHL), illegally divided North America into exclusive recruiting territories and agreed not to recruit from each other’s regions.
Such agreements are considered violations of antitrust law because they limit competition for labor, potentially resulting in lower wages and fewer opportunities for workers. The case was previously dismissed by the U.S. District Court for the Western District of Washington on jurisdictional grounds, as most defendants are based in Canada and their conduct did not specifically target Washington where the lawsuit was filed. The court also cited international comity as a reason for dismissal.
In their brief, the attorneys general argue that this ruling could hinder future efforts by states to challenge legal violations affecting U.S. citizens if those violations cross state or national borders. They urge the appeals court to reverse the district court’s decision.
Attorney General Bonta stated: “Dividing a labor market is just as anticompetitive as dividing a product market. Agreements among competitors not to poach one another’s workers restrict worker mobility, depress wages, and harm our economy,” said Attorney General Bonta. “Antitrust violations know no borders and enforcement to stop these violations shouldn’t be unjustly limited either — the hockey leagues in this case deployed their anticompetitive scheme throughout Canada and the United States. I urge the court to reverse the dismissal of this case. Failing to do so would set a dangerous precedent and jeopardize states’ own ability to protect our residents by pursuing multistate and transnational antitrust cases.”
The coalition includes attorneys general from Washington, Colorado, Delaware, Illinois, Maryland, Michigan, Minnesota, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, and the District of Columbia.
The plaintiffs claim that three major Canadian junior hockey leagues agreed not only on exclusive recruiting territories but also refrained from recruiting players outside their designated areas across North America. This arrangement allegedly suppressed competition for player services.
Personal jurisdiction requires courts to have sufficient contact with parties involved in a lawsuit within their state; here, the district court determined such contact was lacking because defendants were largely based outside Washington State.
The attorneys general caution that upholding this dismissal may allow conspirators who operate across multiple jurisdictions or countries to avoid accountability simply because their actions are widespread rather than confined to one location.
A copy of the brief is available online.
