Troy Polamalu Lawsuit: La Jolla Property and AAF Class Action

Troy Polamalu has been named in two notable lawsuits since leaving the NFL: a property dispute over his La Jolla, California, home that ended in a multimillion-dollar judgment in his favor, and a federal class action brought by former employees of the Alliance of American Football after the league’s 2019 collapse, in which he was named as an individual defendant alongside other league executives.

The La Jolla Property Lawsuit

In 2009, Troy and Theodora Polamalu bought a home on Colgate Circle in La Jolla for $4.75 million and spent more than $2.3 million on improvements. A landslide struck the property in January 2010, and that December about 2,000 square feet of the backyard collapsed into the canyon below.1Voice of San Diego. NFL Star Sues Billionaire’s Son Over La Jolla Home

The Polamalus filed a $7.5 million suit in San Diego County Superior Court against Harry Rady, the construction company HRMR Inc. in which Rady was an investor, a real estate company, and a real estate agent. The complaint alleged that Rady had imported roughly 4,000 cubic yards of soil to extend the backyard into the canyon without the required permits, inspections, or City of San Diego approval, and that the concealed work caused the collapse. Rady and HRMR contested the claims, arguing that the firm had relied on construction workers’ expertise and that Rady did not directly own the property but held a share of the owning corporation.1Voice of San Diego. NFL Star Sues Billionaire’s Son Over La Jolla Home

In June 2014, the Polamalus were awarded $4.25 million in punitive damages against HRMR Holdings, according to San Diego County Superior Court records.2Los Angeles Times. Troy Polamalu House The couple later sold the property for $2.5 million.3Behind the Steel Curtain. Troy Polamalu Escapes From the Money Pit

The Alliance of American Football Class Action

After retiring, Polamalu joined the Alliance of American Football as Head of Player Relations and led a player wellness initiative called “The Gymnasium,” which offered massages, counseling, and other support services.4Behind the Steel Curtain. Former Steelers Safety Troy Polamalu Named in a Lawsuit Filed Against Alliance of American Football5ESPN. Inside the Short, Unhappy Life of the Alliance of American Football

The AAF launched in February 2019 with backing from Reggie Fowler, a former Minnesota Vikings minority owner who had pledged $50 million plus a $120 million line of credit. When Fowler became caught up in a cryptocurrency-related criminal investigation, funding dried up. Carolina Hurricanes owner Tom Dundon stepped in with roughly $70 million, then shut the league down on April 2, 2019, after eight weeks of play. The AAF filed for Chapter 7 bankruptcy two weeks later.6Front Office Sports. AAF Spring Football Bankruptcy Lawsuit

Why Polamalu Was Named

Former AAF employees John Swope and Jay Roberson filed a federal class action in the U.S. District Court for the Northern District of California, later joined by former Birmingham Iron executive James Roberson Jr. The suit alleged the AAF violated the Worker Adjustment and Retraining Notification Act by laying off its entire workforce without the 60 days’ written notice the statute requires of employers with 100 or more workers.7Sports Illustrated. AAF Alliance of American Football Suspended Litigation Legal Fallout Polamalu was named as an individual defendant along with Hall of Fame general manager Bill Polian, former NFL defensive end Jared Allen, the AAF itself, Legendary Field Exhibitions LLC, Founders Fund, The Chernin Group, MGM Resorts International, and several other investors.8ClassAction.org. Defunct Alliance of American Football Hit With Class Action Lawsuits From Players, Employees

A separate lawsuit brought by former AAF players Colton Schmidt and Reggie Northrup in San Francisco Superior Court alleged breach of contract, fraud, and violations of California labor law for unpaid wages.7Sports Illustrated. AAF Alliance of American Football Suspended Litigation Legal Fallout

The Individual Liability Question

Polamalu and the other executives named individually were expected to argue that the WARN Act applies to a “business enterprise,” not to individual directors or officers, and so they could not be held personally liable. Legal analysis at the time noted that the question of individual liability under the WARN Act was unsettled, though the traditional understanding favored the defense position.7Sports Illustrated. AAF Alliance of American Football Suspended Litigation Legal Fallout The available records do not indicate whether Polamalu was ultimately dismissed from the class action or reached a separate resolution.

What Happened Next in the Bankruptcy

The long-running litigation that grew out of the AAF’s collapse targeted Dundon, his firm Dundon Capital Partners, and executive John Zutter, not Polamalu. A Chapter 7 trustee’s adversary proceeding in the U.S. Bankruptcy Court for the Western District of Texas sought as much as $184 million, alleging breach of fiduciary duty and self-dealing. After a 21-day trial, Chief U.S. Bankruptcy Judge Craig Gargotta ruled on November 25, 2025, that Dundon had breached a duty of loyalty but awarded only one dollar in nominal damages because the trustee could not prove the breach caused the league’s losses.9Sportico. AAF Bankruptcy Ruling Dundon Polamalu was not a party to that adversary proceeding.