Judge rules in favor of Predators, Cigarran, arbitration

A Davidson County judge on Friday sent the legal dispute between Nashville Predators owner David Freeman and Chairman Tom Cigarran back to the National Hockey League for arbitration.

Chancellor Ellen Hobbs Lyle ruled in favor of the Predators and the NHL, saying in a Friday afternoon order that Freeman's contract with the league was "unambiguous." She also dismissed Freeman's request to halt the arbitration process.

“We are pleased with the ruling of Davidson County Chancery Court, as it reaffirms our position from the beginning that Mr. Freeman’s claim was meritless, frivolous, and that this issue should be resolved by the NHL as mandated by the NHL Constitution," a statement from the Predators reads. "The organization does not plan to comment further on this matter at this time.”

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In June, Freeman filed a $250 million lawsuit accusing Cigarran and the Predators of failing to honor loan guaranty fees he says are owed to him and keeping him in the dark about the franchise's financial operations.

The dispute was already in arbitration at the league office, where it was initially filed Jan. 28, 2015.

"We are respectful of the Court’s decision on procedural matters and are ready to turn our attention to the substantive issues," Freeman said in a statement. There could be future legal action in his case, depending on the outcome of arbitration.

"We appreciate Chancellor Lyle’s recognition that this matter is potentially 'detrimental to the best interests of the League,' and her acknowledgment that we have a direct path to Federal Court if the arbiter evidences 'partiality' in his decisions."

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In Hobbs Lyle's order, she writes that after arbitration, disputes in some circumstances can go before a federal judge. She agreed with Freeman it was her job to determine the proper venue for the lawsuit.

But her ruling overall delivered a blow to the owner, saying the clear language of Freeman's agreement with the Predators obligates arbitration and establishes NHL Commissioner Gary Bettman's interest to consider what's best for the league.

"Accordingly, the institutional bias of the NHL Commissioner is not a basis by law to keep this case in court," the order reads.

RELATED: Predators owner sues team, chairman for $250M

Freeman had argued in court that Bettman had an interest in quashing disputes between owners in order to maintain the health of the league, and thus his dispute should continue before a judge. His lawyers, Alex Little and Ed Yarbrough, argued a complex theory that Freeman was not an owner of the franchise. Yarbrough declined to comment on the judge's ruling Friday.

The Predators and the NHL, which intervened in the lawsuit, suggested in court documents that Freeman was "forum shopping" his dispute, noting that Freeman has taken nine separate disputes to arbitration before the commissioner in a seven-year period.

Hobbs Lyle's 20-page ruling is redacted in parts. She writes in a separate order that the blacked-out information is only private information about the agreement between Freeman and the Predators and past arbitration outcomes. Freeman, in court filings, had asked that nothing be sealed from public view.

Reach Nate Rau at 615-259-8094 and on Twitter @tnnaterau. Reach Stacey Barchenger at 615-726-8968 and on Twitter @sbarchenger.