Both sides expect commissioner to back the team

In a major blow to Nashville Predators co-owner David Freeman, Chancellor Ellen Hobbs Lyle ordered him and the team he helped save to arbitration with the National Hockey League.

Freeman sued the Predators and fellow owner Tom Cigarran for $250 million in June, alleging various breaches of contract and unjust enrichment by the ownership group and inducement of breach and breach of fiduciary duty against Cigarran. He was seeking to have his original ownership stake of 48 percent restored and a pay back of guarantees he made to the city and the team's former creditors.

Last week, lawyers for Freeman, the team and the NHL argued a motion to compel arbitration in a lengthy hearing before Lyle. She had to determine whether Davidson County Chancery Court was the appropriate venue for the case. Attorneys for the team and the NHL said that Freeman is bound by the consent agreement that created the ownership group as well as the NHL's constitution and bylaws to have his case heard in arbitration by Commissioner Gary Bettman.

But Freeman's lawyers, Bone McAllester Norton attorneys Ed Yarbrough and Alex Little, argued instead that he is not an owner, but an investment partner as a beneficiary of Commodore Trust, which itself owns a stake in Predators Holdings. Further, they argued Wednesday that Bettman cannot be seen as a neutral arbitrator because his charge is to maintain the stability of the league and its member teams, which would be threatened by a large judgment in favor of Freeman.

On the other side, the league and team said Freeman meets every standard definition of an owner and that he long ago agreed to have these disputes heard by Bettman, who is uniquely qualified to settle these controversies because of his particular knowledge of the business of the NHL. That's a standard that has been upheld by courts in similar cases questioning the appropriateness of sports leagues to settle internecine disputes.

The ruling, which was filed under seal, is a significant win for the Predators, as both sides agreed during oral arguments that Bettman is likely to side with the team.