Detroit Lions and Billy Sims v. Jerry Argovitz

Billy Sims, an NFL running back for the Detroit Lions (plaintiffs), was represented by agent Jerry Argovitz (defendant). While negotiating Sims's new Lions contract, Argovitz became president and part owner of the Houston Gamblers of the rival USFL, without telling Sims. The Lions offered Sims a five-year, $3.5 million deal with loan, injury guarantee, and annuity terms. Believing the Lions were not negotiating in good faith, Sims negotiated with the Gamblers (through Argovitz's partner) and accepted a comparable Gamblers offer, with Argovitz set to take a $100,000 agent fee; the papers included a waiver of any breach-of-fiduciary-duty claim against Argovitz. Sims and the Lions sued to rescind the Gamblers contract.

Whether a contract is voidable by the principal where the agent breached his fiduciary duty by placing himself in a position adverse to the principal.