DNA Sports Performance Lab, Inc. v. Major League Baseball

Background

The defendants moved for an order declaring Neiman Nix a vexatious litigant, imposing a pre-filing order for future lawsuits in the Northern District of California, and requiring an accounting of his funds since June 24, 2021. A vexatious-litigant order restricts a person’s ability to file certain new cases without first obtaining court permission.

The opinion recounts that Nix formed DNA Sports Performance Lab, Inc. to sell health supplements extracted from shed elk-antler tissue containing IGF-1. After Major League Baseball investigated the sale of performance-enhancing drugs, Nix contended that the investigation harmed DNA Sports’ business and led to his lawsuits. The opinion states that Nix, individually and through DNA Sports, filed numerous suits against the league, its affiliates, and others in state and federal courts.

In this action, DNA Sports and Nix alleged false advertising and unfair competition. The court previously dismissed the claims, and plaintiffs then voluntarily dismissed the case with prejudice. A later order largely granted a sanctions motion, found the complaint baseless and filed to harass the league and union, and required Nix and DNA Sports to pay defendants’ attorney’s fees. A subsequent order found plaintiffs in civil contempt and addressed efforts to avoid paying sanctions.

Analysis

The court relied on its inherent authority under 28 U.S.C. § 1651(a) and Ninth Circuit standards for pre-filing orders. Those standards require notice to the litigant, an adequate record, substantive findings that the filings were frivolous, and a narrowly tailored order.

The court found that Nix had received notice and opportunities to respond through the motion, written submissions, and oral argument. It also found an extensive record of litigation involving the same core IGF-1-related facts, including cases in Florida, New York, the Southern District of New York, the Southern District of Florida, and the Southern District of Texas. The court concluded that this history showed abusive litigation and misuse of the judicial system.

The court relied on earlier findings that Nix’s lawsuits were frivolous and primarily intended to harass the league and union. It rejected Nix’s argument that changing the named entities or filing in another court avoided the court’s authority to impose the order.

The court found the requested restriction sufficiently narrow because it applied only to lawsuits related to IGF-1 filed in the Northern District of California. If Nix is represented by counsel in such a lawsuit, counsel must file a declaration under penalty of perjury explaining that counsel sufficiently investigated the matter and why counsel believes the proposed lawsuit is meritorious.

The court also granted the defendants’ request for another financial accounting. It stated that Nix had not paid any portion of the $137,446.25 in sanctions he owed and had continued paying fees to file lawsuits against the defendants.

Disposition

The court granted the defendants’ motion to the extent stated in the order. It declared Neiman Nix a vexatious litigant and required him to obtain prior leave from the court before filing further lawsuits relating to IGF-1 in the Northern District of California. The Clerk was directed to send any complaints submitted by Nix to Judge William Alsup for pre-filing review.

The court also ordered Nix to submit, by April 28, 2022, at noon, an accounting under oath to defense counsel of all funds he had obtained from any source since June 24, 2021.