Following the filing of the Atlantic Coast Conference’s (“ACC”) lawsuit to enforce its bylaws and exit fee, Maryland filed a motion to dismiss the proceedings in North Carolina by arguing the institution is not liable in light of sovereign immunity. Sovereign immunity protects state agencies, including state institutions of higher learning, from suit and damages, in some cases. Conversely, counsel for the ACC argued that sovereign immunity does not apply to contractual claims in North Carolina (in Texas sovereign immunity would apply to contract claims, i.e., Leach v. Texas Tech). In short, Judge John O. Craig, III denied Maryland’s motion and the case will move forward in North Carolina.
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