Gordon Rees Scully Mansukhani, a San Francisco-based law firm, has responded to a $92 million lawsuit filed by veteran NBA basketball players’ agent, Aaron Goodwin, and his business partner, Eric Goodwin, claiming that they waited too long to bring the suit in New York. The Goodwins have alleged that Gordon Rees misled them over selling their sports management enterprises, costing them tens of millions in lost profits from player salaries and endorsement contracts.
The Goodwins’ 61-page lawsuit accused Gordon Rees and two former lawyers there of committing a “brazen bait-and-switch to mislead the Goodwins into selling their thriving” business. The law firm was accused of “misrepresentations and concealments” after a 2016 deal involving selling the Goodwins’ businesses for $35 million. The Goodwins alleged that their signatures were fraudulently attached to deal documents that neither brother had seen or agreed to.
In its response, the 1,000-lawyer Gordon Rees firm argued that the Goodwins had waited too long to bring their claims and that they “cannot recover damages for losses they could have avoided by reasonable efforts.” The firm’s attorneys and lawyer, Willard Shih of Wilentz, Goldman & Spitzer, did not immediately respond to messages seeking comment.
The firm’s response also stated that it planned to argue, among other defenses, that the allegations fell outside applicable statute limitations. It claimed that the Goodwins “ratified the actions and circumstances that form the basis of their claims.” No trial date has been set yet.
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Rodney Villazor of Smith Villazor, the Goodwins’ lawyer, did not immediately respond to a message seeking comment. However, in a prior statement, he had said that the Goodwins “suffered substantial reputational harm and a significant loss of business.”
Aaron Goodwin’s clients have included top NBA players such as LeBron James, Kevin Durant, and Damian Lillard. The Goodwins’ lawsuit seeks damages based on claims of lost profits from player salary and endorsement contracts.
This case is the latest in high-profile legal battles involving sports agents and their firms. It remains to be seen how it will be resolved and its impact on the sports industry as a whole.