K&L Gates Secures Major Trial Victory Fully Vindicating Dundon Capital Partners in AAF Bankruptcy Litigation

Global law firm K&L Gates LLP achieved a sweeping trial victory for Dundon Capital Partners (DCP) and executives Tom Dundon and John Zutter in high-stakes litigation arising from the 2019 bankruptcy of the Alliance of American Football (AAF). Following a five-week trial spanning 78 days of proceedings, the US Bankruptcy Court for the Western District of Texas issued a comprehensive ruling in favor of DCP and Zutter on all contract, fraud, and fiduciary-duty claims. The court also cleared Dundon of all but one claim, awarding only a nominal $1 in damages.

The litigation centered on allegations concerning the AAF’s sudden halt of operations and subsequent bankruptcy. In its decision, the court found that the league’s collapse stemmed from substantial preexisting liabilities predating DCP’s involvement, and concluded that Dundon and Zutter acted appropriately and in good faith in their efforts to stabilize the organization. The ruling affirms that neither executive caused the league’s demise and instead made significant attempts to sustain its operations under extraordinarily challenging circumstances.

“Tom came in hopeful that he could save the AAF and make it a permanent fixture on the professional sports scene,” said K&L Gates Dallas partner Brent Hockaday. “Despite his efforts, energy, and financial commitments, it quickly became clear that the AAF’s leadership had misrepresented its standing, and the league was simply beyond repair. We are very grateful for the court’s determination. This was a team win for our clients first and foremost, but also our firm and my friends at Bell Nunnally & Martin LLP, with whom I started this journey six years ago and worked hand-in-hand through nearly every critical step and juncture through trial.”

The K&L Gates team representing DCP and its executives throughout the multi-year litigation was led by Hockaday, with support from Dallas associates Ben Nabors and Suzi Goebel, and Chicago of counsel Alicia Hawley.

The win was covered by several media outlets including The Texas LawBook, Bloomberg Law, The Am Law Litigation Daily, Sportico, and the San Antonio Express News.