MLB Lawsuit
In October 1947, unable to get a baseball job in the major or minor leagues after playing in Mexico, Gardella sued the Major League Baseball hierarchy and the Giants in the United States District Court for the Southern District of New York, seeking $300,000 in damages. He charged that the reserve clause was "monopolistic and restrains trade." A year later, the case was dismissed by a federal judge who cited a 1922 Supreme Court ruling that found baseball was not a business engaged in interstate commerce within the meaning of federal antitrust law. But in February 1949, the Second Circuit Court of Appeals, in a 2-to-1 ruling, sent the case back to District Court and ordered a full trial on Gardella's contentions.
In June 1949, faced with the prospect of a courtroom defeat, Chandler offered amnesty to the players who had gone to the Mexican League. Gardella, warned by his lawyer that he faced a long and costly legal battle, dropped his lawsuit. He said later that he received a $60,000 settlement from baseball.
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