Sherdog’s Tracey Lesetar and J.R. Riddell report that Zuffa received a boost in its lawsuit against Bellator Fighting Championships and Ken Pavia of MMA Agents as the United States District Court of Nevada denied Bellator’s protective order to stay discovery until the court decides Bellator’s motion to dismiss for lack of jurisdiction.
The background of the lawsuit was summed up by MMA Fighting last summer:
The suit alleges Bellator and Pavia were conspiring to essentially steal trade secrets from Zuffa through the exchange of confidential documents in e-mails. Pavia, head of the MMA Agents representation firm, handles dozens of MMA fighters, including many under the Zuffa umbrella.
In its motion to stay discovery, Bellator requested the court hold off on the parties from having to conduct written discovery and depositions before the court decides on whether to dismiss Zuffa’s case. Prior to the motion for protective order staying discovery, Bellator took issue with Zuffa filing the lawsuit in Nevada. Bellator claimed that it had no ties with Nevada and, by law, Zuffa could not file a lawsuit in Nevada. Instead, if the lawsuit were to continue, Bellator would want it moved to New Jersey.
Payout Perspective:
The issue being fought over is a basic Civil Procedure question involving jurisdiction. The papers even include a reference to International Shoe (a famous case for those that have attended law school). The court ruling means that Zuffa will agressively pursue Bellator and Pavia with discovery. This will range from written requests to depositions. It is likely that there will be many skirmishes between the parties about the production of documents and other information. The discovery deadline for the parties is set for the end of June.
As Sherdog points out. this case may serve as a model on how non-Nevada promotions and MMA companies will be treated in the future. Basically, can the UFC and other Nevada companies sue promotions in Nevada if those promotions have minimal contacts with the state.
(h/t: MMA Supremacy)
I have seen a lot of sites trying to sell this as a major win for Zuffa when in fact it isn’t. If you have a look at why Zuffa thinks Nevada should have jurisdiction it is some pretty thin gruel.
There is another case going on right now that is instructional for what the court is going to be looking at when they get to the jurisdiction part. That is the Sony case over in California.
http://www.groklaw.net/article.php?story=20110114185542531
Over there the judge is bawking at the idea that she should have sway over the entire world because people from any where can visit a server in California. Zuffa is claiming that Bellator sells tickets to people in Nevada and hires fighters who are contractors that come from Nevada. If the fighters were employees they might have a better case and if Bellator had a ticket office in Nevada they might have a better case. But right now it’s a loser.
If it had stayed in the states courts I don’t think there is any way Zuffa could have lost. I am afraid I have lost all faith in the legal system in Nevada.