Dallas Mavericks lawyer Chip Babcock gestures during a hearing concerning the Dallas Mavericks and the Dallas Stars lawsuit over control of American Airlines Center in the Texas Business Court at Karcher Hall on the SMU campus, Friday, March 6, 2026, in University Park.
Chitose Suzuki/Staff Photographer
Having earned what they termed significant pretrial legal victories, the Mavericks on Thursday moved toward what they say they hope will be a peaceful resolution in their legal dispute with the Stars.
Mavericks lead attorney Chip Babcock notified the Texas Business Court that Dallas’ NBA team is dropping its damages claim against the city’s NHL team for tortious interference with contract.
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Without giving specifics, the Mavericks issued a statement to The Dallas Morning News regarding why they are dropping the claim.
“The Dallas Mavericks organization is taking this step as an important and proactive demonstration of good faith.
“While recent legal rulings have provided significant clarity in this matter, we have a strong and sincere desire to move past this issue and focus on what matters most — investing in the long-term success of professional sports in Dallas. That remains our priority.”
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A person familiar with the potential claim amount estimated it to be $60 million to $70 million, citing a legal expert’s deposition from this week.
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The claim withdrawal comes exactly one week after Texas Business Court Judge Bill Whitehill’s 91-page opinion and order that the Mavericks interpret to mean they have control of Center Operating Company, which controls American Airlines Center, until and unless a jury trial decides otherwise. The Stars believe the issue of COC control remains unresolved, with monthly arena disbursements remaining in an escrow fund.
In the rulings, Whitehill denied the Stars’ five summary judgment motions and granted the Mavericks’ motions for declaratory judgment and affirmative defenses.
“Nonetheless,” he concluded, “these rulings do not dispose of the entire case because they do not address the Mavericks’ tortious interference claim, which is set for trial on May 11, 2026, and other issues.”
On Thursday afternoon, Whitehill ordered the sides to resume mediation.
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The Stars referred The News on Thursday to Stars lead attorney Joshua Sandler, who declined to comment.
Dispute over American Airlines Center
The Babcock-led legal team says Whitehill’s rulings also paved the way for their tortious interference claim to be granted. Much of their claim amount was based on the COC’s monthly arena disbursements to both teams that have been held in escrow since October 2025.
It remains to be seen what becomes of that money, how much of it would be distributed to the Stars, or how the Mavericks-Stars partnership as AAC tenants will work going forward. Both teams have lease agreements to remain in AAC through July 2031.
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Without the tortious interference claim, other issues that remain for a potential trial include whether one side is liable for all legal fees.
The Stars also raised in court filings that in the Mavericks’ original 253-page petition of Oct. 28 and other early filings, the lawsuit defendant was listed as the Stars’ parent company.
Subsequent filings were amended to specify the proper subsidiary “DSE Hockey.”
Given Thursday’s development, it’s unclear whether the scheduled jury trial will still occur, though Sandler issued a defiant statement to The News in the immediate aftermath of Whitehill’s rulings last week.
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“This is a case about a power grab by new out-of-state owners attempting to seize complete control of the American Airlines Center for $110 cash. It is a story a jury needs to hear and decide.
“We respect the Court’s ruling on the parties’ motions for summary judgment, and we understand there are numerous issues to be decided at trial. And we are certainly looking forward to presenting our case and telling our story to the jury and the citizens of Dallas.”
Sandler added that day: “As Yogi Berra once said, ‘It ain’t over till it’s over.’ “
Why did Mavericks, Stars relationship deteriorate?
In the petition last October, the Mavericks sought injunctive relief and finality on the breach of contract dispute they brought to the Stars’ attention in October 2024.
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In reality, their yearlong deteriorating relationship didn’t come to a legal head until after the Mavericks and City of Dallas claimed the Stars reneged on a deal to refurbish American Airlines Center for $300 million at no cost to the Stars.
Among Whitehill’s rulings that struck down the Stars’ summary judgment motion and seemed to cripple their legal standing going forward:
– The Mavericks did have a right to make a redemption claim of the Stars’ 50% interest in Center Operating Company, which controls American Airlines Center, citing a breach of the teams’ 1998 franchise agreements that required them to maintain their principal headquarters in Dallas.
– Making that redemption claim, and paying the Stars $110 for their half of COC, did not require a board vote.
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– Denied the Stars’ claim that the case should be dismissed due to the two-plus decade gap between the 1998 franchise agreement and the 2024 breach. The Stars in fact have never had their principal headquarters in Dallas, but Whitehill ruled the Mavericks were within their legal right to cite the breach regardless of the time gap.
Future arenas in Dallas, Plano?
The team’s legal feud has massive implications in their respective futures at American Airlines Center and in Dallas.
The Mavericks have made clear they plan to leave AAC after the lease expires in 2031 and build a new basketball-only arena elsewhere in Dallas, exploring the possibility of tearing down City Hall in Downtown Dallas or building at the former Valley View Mall site in North Dallas.
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The Stars have explored leaving Dallas and building a new arena and entertainment district in Plano at The Shops at Willow Bend mall site.
The Stars have also considered staying at American Airlines Center after 2031 when the Mavericks move, but it is unclear whether they would do so if the Mavericks control Center Operating Company.
Staff Writer Lia Assimakopoulos contributed to this story.