Rod tries to settle out of Court

[mountaineerinpa]

Rodriguez offers to pay portion of buyout; sides still trying to settle
By Mark Schlabach
ESPN.com
(Archive)
Updated: January 29, 2008, 1:26 PM ET
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Former West Virginia football coach Rich Rodriguez has offered to pay the school $1.5 million to buy out the final six years of his contract, according to a letter of credit filed Tuesday in U.S. District Court in Clarksburg, W.Va.


[+] EnlargeAP Photo/Tony Ding

Michigan's new coach was sued by WVU to collect on a $4 million buyout clause. The sides are trying to settle out of court, sources said.

Rodriguez, who was hired as Michigan's coach on Dec. 16, filed the letter of credit "in the spirit of compromise and as an act of good faith to assure West Virginia University that if this Honorable Court makes an award against Defendant, said monies will be paid," according to the court filing.

"The amount owed by Mr. Rodriguez, under the terms of the contract in effect at the time of his resignation, is $4 million," WVU attorney Jeff Wakefield said Tuesday.

In a joint statement released to ESPN.com, Rodriguez and his attorneys wrote: "Coach Rodriguez is a responsible person. [The amount of the letter of credit] is the amount owed by [Rodriguez] under the first amendment of the Employment Agreement at the date of his resignation. This is a good faith effort to move the process and communication lines forward so all parties can concentrate on their future endeavors."

WVU sued Rodriguez last month to collect on a $4 million buyout clause in the contract he signed Aug. 24. Rodriguez's attorneys have disputed the coach owes his former school that much. Rodriguez claims he was pressured into signing a one-year extension at West Virginia, and claims university president Mike Garrison promised to lower the amount of his buyout.

Sources close to the situation said West Virginia officials and Rodriguez's attorneys are attempting to negotiate an out-of-court settlement to avoid going to trial.

Rodriguez's response to the lawsuit must be filed in U.S. District Court by Monday.

In the latest court filing, Rodriguez's attorneys wrote: "The amount of the Letter of Credit is equal to the maximum liquidated damages provision [penalty] at the date of termination provided in the first amendment to the original Employment Agreement. In any event, the amount of the letter of credit exceeds the first payment that Plaintiff claims is due."

Former Mountaineers basketball coach John Beilein, who was hired as Michigan's coach last April, paid West Virginia $1.5 million to buy out the final five years of his contract. The amount was $1 million less than the penalty called for in Beilein's contract, which ran through the 2012 season.

Mark Schlabach covers college sports for ESPN.com. Information from The Associated Press was used in this report.

[elp525]

I hope that Mr. Wakefield holds him to the maximum of 4 mil. He knew what he was signing. It took him 9 months to sign the contract so we know it couldn't been pressed to do so. He was classless in making people believe he was on a recruiting mission when he was in a backroom in Toledo with UM personnel hammering out a deal - UM had not contacted WVU for permission to talk to their coach. Make him pay.

[mountaineerinpa]

I agree 100% percent with you.

[WVUfanPHILLY]

I think something just happened. When I turned on ESPN, they were just going away from RR story, and the bottom line read "settlement reached".

[mountaineerinpa]

I saw something to that effect also but didnt want to talk to fast until the full story came out .

[WVUfanPHILLY]

ESPNews is still saying that the offer was made, but that's it.

[smurph]

I went in to Starbucks and got a cup of coffee. They told me I owed them $4. I gave them $1.50 and told them I would settle with them for that amount. Guess what they told Me.

[mountaineerinpa]

LOL

[WVUfanPHILLY]

LOL! Nice!

[mountaineerinpa]

They said on ESPN that he filed something in court similar to an IOU note. Bullshit, unless it has 4 mil attached to it send it back.

[elp525]

The 1.5 mil will be held for 90 days until the courts tell Rancid Rod to pay the full amount. This is only the first payment he was supposed to pay after the initial 30 days post resigination.

[mountaineerinpa]

Here is the actual court document.......

www.wvmetronews.com/uploads/Rod_CourtFiling_01.pdf

[joemountaineer]

Ok gang, according to the information given tonight on the Statewide Sportsline radio program, WVU is NOT negotiating any sort of deal. From what they said, this $1.5 million is actually the amount stated as liquidated damages in Fraudass's PREVIOUS contract (the one in effect before he signed the new on in August 07). So, the spin here, is Fraud and his agent are saying the current contract is null and void, and they are going to try to honor the clauses of the previous contract. The WVU attorney released a statement that they expect Fraud to pay the $4 million owed plus damages and that they are not considering any sort of settlement and they are NOT engaged in any sort of negotiating process. They also said this letter of credit is extremely unusual and in effect, MEANS NOTHING. This is more spin by Fraudfuck and his cronies. This story about the letter of credit was released by Mike Brown and Fraudfucks' attorneys directly to ESPN in attempt to garner public opinion. I take it as they are feeling the heat and are trying more spin because they know that Fraudfuck's image and Michigan's is taking a hit BIG TIME.

Smurph, y'know I tried something similar regarding a car I owed money on, and the bank, for some unexplained reason, referred to something about a "contract" I'd signed. What does that mean? ;D

[BumpCityWV]

These days it means nothing.

[elp525]

By Mike Casazza
Daily Mail sportswriter

<f"Swis721 Blk BT">FORMER FOOTBALL <f"DMCrown">coach Rich Rodriguez's letter of credit filed Tuesday in Clarksburg's U.S. District Court sent West Virginia University's legal team scrambling -- for clarity.

"It's an unusual filing and we're not even sure what it's supposed to be," said Jeff Wakefield, an attorney at the Charleston firm Flaherty, Sensabaugh & Bonassao, which is representing WVU in its legal proceedings against Rodriguez. "The letter of credit he's filed indicates he's perhaps willing to pay money under certain conditions, including a court order, if it's determined he owes any money."

In the filing, which Rodriguez and his representation deemed to be "in the spirit of compromise and as an act of good faith," Rodriguez claims he believes he owes and is willing to pay WVU $1.5 million in liquidated damages for the early termination of his contract.

It is not his legal response to the lawsuit WVU has filed against him seeking the full $4 million buyout and pre-judgment interest. That response is due on or before Feb. 4.

Wakefield also refuted reports WVU and Rodriguez are negotiating a settlement.

"That's absolutely untrue," he said. "There are no negotiations occurring."

WVU offered no other reaction to Rodriguez's filing and remains committed to collecting. Last week, a letter of resignation Rodriguez dated Jan. 10 became public. In the letter he claimed WVU President Mike Garrison made an oral promise to reduce or eliminate the buyout in his contract.



It's the basis for his challenge to the buyout clause, but Wakefield said WVU doesn't believe Rodriguez's letter would be admissible as evidence in the lawsuit due to the "parole evidence rule." According to Wakefield, the rule reads, "evidence of oral negotiations or stipulations is inadmissible to contradict or vary the terms of a written contract."

Additionally, Rodriguez's contract reads, "modification, amendment or addendum to this Agreement shall be effective only if made in writing and signed by both parties."