To follow on my OP.
Article 24(m) of the NBA Constitution pretty much complies with State Corporate Law by subordinating the so-called exclusive powers of the commissioner to the Laws of the State of New York, which must be the State of Incorporation of the NBA.
You see, all the Corporate and Organizational By-Laws are subject to the laws of the State of Incorporation. So regardless of the exclusivity clause of Section 24(d), the Commissioner like all corporations in the State of New York, must obey the Corporate Law of the State of New York.
Of course the Celtics can sue the Cavs, Section 24 just requires that they first exhaust their administrative remedies by going to the Commissioner first. If they do not like the Commissioner's decision they simply file a lawsuit naming both the NBA, the Commissioner, and the Cavs. Just a matter of Civil Procedure.
Now lets deal with the Contract Formation and the By-Laws dealing with Intra-Association Assignment of Contractual Rights. These rules are contained in Section 4 of the By-Laws, with the trade procedures governed by Section 4.02., that states as follows;
(a)In order to conduct any Assignment Transaction, the
parties thereto shall state their agreement on the terms and conditions of
the transaction during a conference call with the Association Office
(the “Trade Call”). Such terms and conditions shall include, without
limitation, all details with respect to amounts of money, terms of
payment, and draft choices, if any. An Assignment Transaction shall
not be deemed to be completed until all conditions thereof agreed upon
during the Trade Call have been satisfied and the parties thereto have
received written notice from the Association Office confirming that all
such conditions to the Assignment Transaction have been satisfied.
Any term or condition of an Assignment Transaction not disclosed to
the Association Office on the Trade Call shall not be enforceable. If it
is subsequently discovered by the Association Office that an
Assignment Transaction included a term or condition not disclosed on
the Trade Call, then the Commissioner shall have the right to impose a
fine on each of the parties to the Assignment Transaction in an amount
not to exceed $5,000,000.
Please read the bolded part very carefully, and it shows you that the NBA acts as a clearinghouse for the parties AGREEMENT. The parties must agree on all the conditions of the agreement. If you agree to include an injured player in a deal, you cannot vitiate the deal because the player is 'injured'. Interpretations of conditions are such an essential part of contracts that entire sections of Contract Treatises are devoted to jurisprudence of Conditions in Contract formation. Conditions are an essential part of interpreting both the formation and performance of contractual obligations. Perhaps that is why Section 4.02.(b) of the NBA By-Laws states:
(b) All terms and conditions of an Assignment
Transaction shall be set forth in detail in a Trade Memorandum to be
prepared by the Association Office following the Trade Call. In the
event of any subsequent dispute concerning the terms and conditions of
the transaction, the Trade Memorandum shall govern.
There goes that word 'conditions' again. If anyone does not think lawyers are already all over this, and that there can be no lawsuit from one party trying to go outside the terms and conditions that were given to the league office all I can do is 'shrug'.
By the way, there is also a 'full disclosure' section in the By-Laws. Check out Section 4.03(a)
4.03. Full Disclosure.
(a) A Member shall disclose during a Trade Call all
relevant information in its possession, custody, or control concerning
the health of a Player whose contract or negotiating rights the Member
is assigning. For purposes of the foregoing sentence, “relevant
information” shall include any information concerning current or prior
injuries, illnesses, or other health conditions that could affect the
Player’s ability to play skilled basketball at any point during the
Player’s career. No Member shall misrepresent or fail to disclose any
such relevant information.
So you think Boston did not tell the Cavs about IT's hip? The only way out for Cavs is if Celtics withheld information. If they did the deal should be cancelled, and Celtics cannot gripe. If not, the deal goes through or the Celtics sue........