The lawsuit between Vince McMahon and Oliver Luck is heating up as the WWE head has filed an opposition to a motion that would require him to show assets that could fulfill a potential judgment.
Luck’s lawsuit stems from his termination as XFL Commissioner by Alpha Entertainment, LLC, the company that ran the league. Alpha Entertainment, LLC filed for Chapter 11 Bankruptcy. Luck sued McMahon for breach of contract of his employment agreement. In addition, Luck filed an Application for Prejudgment Remedy which require that McMahon show that he has assets to cover the amount requested by Luck in the event that the former NFL quarterback would prevail.
McMahon’s lawyer, Jerry McDevitt, requested that they have 60 days to respond to the lawsuit and waive service of it (i.e., McDevitt would acknowledge receipt without the formal service on McMahon). Typically, the defendant in receipt of the lawsuit has 30 days to respond. The filing of the Application drew the ire of McMahon’s attorney, Jerry McDevitt, which he fired off on his iPhone.
In the briefing, McDevitt called the application unnecessary citing McMahon’s robust amount of stock owned of WWE.
“Luck’s Application is wholly unnecessary because McMahon indisputably has the ability to pay any possible judgment that could be entered in this case and is baseless because Luck’s claims against McMahon in this action are meritless,” reads the opposition brief. A party in a lawsuit has a right to file an Application for a Prejudgment Remedy “to provide the plaintiff with security against the risk that the defendant will be unable to satisfy any judgement that may be entered and to prevent the defendant’s fraudulent transfer or wrongful dissipation of assets to defeat any such judgment.”
Luck’s attorneys maintain that its their purview to seek the prejudgment application (referred to as PJR in the emails) regardless of how much stock McMahon has secured. Additionally, he maintained that McMahon would still have his extension to respond to the substantive portions of the lawsuit.
Payout Perspective:
It looks like this will be a contentious lawsuit as is most employment law cases. Here, the request made by Luck was to ensure that McMahon would not claim to not have the funds to cover the amount Luck is seeking to recoup. Luck argues that McMahon still has the 60 days to respond to the lawsuit but the Court had set a time prior to that date to hear issues related to whether McMahon has the money. This angered McDevitt since he believed he had 60 days for to respond on behalf of his client.
However, McMahon has made the argument that Luck has failed to sue Alpha Entertainment, LLC, the organization that ran the XFL. The problem with that for Luck is that they are currently in Chapter 11 bankruptcy. This may impede the progress of his claims as Luck’s attorney would have to go to bankruptcy court to obtain a ruling to proceed against Alpha Entertainment. MPO will continue to follow
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