Monroe County Supreme Court enjoins the NCAA’s eligibility rule for a student-athlete as a third-party beneficiary

Holding The Court granted a preliminary injunction enjoining the NCAA from enforcing eligibility rules against the plaintiff, finding a likelihood of success on claims for breach of the implied covenant of good faith and fair dealing and tortious interference. The Court determined that the NCAA’s cancellation of the waiver request without merit-based review constituted an arbitrary action that infringed upon the plaintiff’s property rights and prospective business relationships.

Why it matters

The decision grants a preliminary injunction against the NCAA, a major national organization, based on the theory that student-athletes are third-party beneficiaries of the NCAA’s bylaws.

The Court applied a dépeçage approach, using Indiana law for third-party beneficiary status but New York law for the implied covenant of good faith and fair dealing due to public policy differences.

The ruling highlights the tension between NCAA self-governance and judicial review of eligibility determinations, specifically regarding the procedural fairness of waiver cancellations.

The court’s words

The application for a preliminary injunction is GRANTED.

2026 NY Slip Op 26167, at the official text

Student-athletes such as Council are third-party beneficiaries of the NCAA's Constitution and Bylaws.

2026 NY Slip Op 26167, at the official text

The merits of KU's Waiver Request were never reviewed for consideration, reviewed, or considered.

2026 NY Slip Op 26167, at the official text

Council establishes a likelihood of success on the merits of his claim for breach of the covenant of good faith and fair dealing because this procedural cancellation, that explicitly did not include a review or consideration of the merits, was either fraudulent or constituted an abuse of Council's civil or property rights.

2026 NY Slip Op 26167, at the official text

The loss of the opportunity to compete in college athletics constitutes irreparable harm warranting injunctive relief, because every game is crucial for a student-athlete and their team and that opportunity, once lost to the passage of a season, cannot be restored by any subsequent money judgment.

2026 NY Slip Op 26167, at the official text