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New Jersey's Rutgers sues Big East for breach of contract

New Jersey college sports fans may already know that Rutgers University has decided to leave the Big East. What sports fans may not know if that Rutgers has filed a lawsuit against the Big East for breach of contract. Rutgers is asserting that it shouldn't have to pay the $10 million exit fee, nor should it have to wait 27 months to leave.

Rutgers asserts that the Big East has waived both the fee and the waiting period for other schools, so Rutgers should get the waiver as well. In addition to that allegation, Rutgers asserts that the Big East owes the university money for portions of exits fees from other schools that have left the Big East. The university sites instances of other Big East schools that were allowed to leave before the waiting period and were did not pay either the entire exit fee or any exit fee at all.

Should Rutgers prevail in its lawsuit, the school stands to be awarded millions of dollars. An award could include Rutgers' share of $39 million in exit fees from other schools and $1.3 million the Big East owes Rutgers for a home game they were forced to cancel. Whether Rutgers receives that award is a matter for the court to decide.

New Jersey companies sign contracts with the expectation that the other party will fulfill its part of the contract. Many contracts contain clauses regarding what steps the parties must take when there is a breach of contract by one of the parties to the contract. Some contracts require mediation or arbitration prior to filing a lawsuit. Any company that has questions regarding what to do when they find themselves in this situation may benefit from seeking advice and assistance in resolving the issue.

Source: Nj.com, "Messy divorce: Rutgers sues Big East for breach of contract over $10M exit fee," Dec. 6, 2012

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