Seeking to save Ali Act case, Trout files Motion for Reconsideration

November 22, 2018

Attorneys for Austin Trout have filed a Motion for Reconsideration in light of the District Court ruling which dismissed Trout’s lawsuit against the WBO and sent his case to arbitration.

In its motion, Trout argues that hat the WBO waived any right to arbitration, pointed to the promotion’s own guidelines with respect to jurisdiction and claims that the Ali Act cannot be subject to arbitration.

As you might recall if you have been following this lawsuit, Trout filed a lawsuit against the promotion as he believed he was passed over a chance to fight for the title.  The case was moved to Puerto Rico where the WBO is located and the promotion filed a motion to dismiss the case and compelling it to arbitration per the terms of the contract.  The Court determined that Trout’s promotional agreement with the WBO with its arbitration agreement ruled the day and dismissed the case to go to arbitration.

Trout is now moving for the court to reconsider the ruling.  The Court will have to be persuaded that its original ruling was in error.

Trout argues that by the WBO having moved the case to Puerto Rico it requested the case to be litigated and waived its right to arbitration.  Trout also claims that the parties have engaged in discovery which would be considered litigating the case.  Moreover, they state that Trout’s claims under the Ali Act cannot be determined by arbitration.

In opposing the motion to reconsideration, the WBO notes that there is no error of law which Trout points to that was decided in error.  This may be the strongest argument for denial by the WBO here.  The WBO claims that the motion is merely an attempt to relitigate the points the Court has already decided. In its opposing brief, the WBO claims it did not waive its right to arbitration. WBO states that despite discovery taking place, it did not substantially involve itself in litigation.  It also suggests that even though the contract indicates a jurisdiction and venue for possible litigation it does not “override” the arbitration clause.

The WBO noted that the Ali Act was subject to arbitration.  Although this issue has not been decided, it argues that the “scope of issues subject to arbitration is determined by the agreement itself.”

Motion for Reconsideration by on Scribd

Opposition to Motion by on Scribd

Reply by on Scribd

Payout Perspective:

As we’ve discussed when the Court ruled that this case go to Arbitration, this decision has big implications for those seeking to litigate under the Ali Act.  The WBO claims, citing case law, that any issue in the contract is subject to arbitration.  However, there has not been a legal challenge where a boxer has sued under the Ali Act and it has gone to arbitration.  The WBO makes a compelling case that there has not been an error of law for the Court to overturn its original decision.  An appeal may be necessary if Trout wants to overturn this decision.  MMA Payout will keep you updated.

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