ATP Tour, Inc. v. Deutscher Tennis Bund

ATP Tour, Inc. (ATP), a Delaware non-stock membership corporation that operates a global men's professional tennis tour, has members including professional players and tournament-owning entities, such as Deutscher Tennis Bund (DTB) and the Qatar Tennis Federation (QTF), who joined ATP in the early 1990s and agreed to be bound by its bylaws as amended from time to time. In 2006, ATP's board amended the bylaws to add a fee-shifting provision requiring a member who sues ATP and does not obtain a judgment substantially achieving the full remedy sought to reimburse ATP for all litigation fees, costs, and expenses. After ATP's board changed the tour schedule in 2007, downgrading the Hamburg tournament that DTB and QTF owned from the top tier to the second tier and moving it to a different season, DTB and QTF sued ATP and six of its directors in federal district court, alleging federal antitrust violations and breach of fiduciary duty under Delaware law. Following a jury trial, the district court and jury found for ATP on all claims, and ATP sought to recover its litigation expenses under the bylaw.