That is why public leagues are such a gamble. You can decide to manage one team, draft and trade your way into contention, then some idiot gets mad and tries to ruin things.
Sure, you can agree to not pick the players up, but it only takes one owner to break the rules and create an uber-team. The guy may have 2 teams in the league and that would be playing to his hand. I think it becomes a free for all, since most leagues this occurs in are basically 'anonymous' you have to be skeptical that all the owners can agree and will co-operate.
Find a better league next year. Forums like these always have people forming leagues. Why spend 16-17 weeks playing the game, but begin by leaving your league quality to random chance?
Not much you can do, really. I'd cut loose a couple of scrub players, then put in claims for your guys by preference.
The meek ain't gonna inherit $#!%....'cuz I'll TAKE IT!