The latest salvo in the Oliver Luck-Vince McMahon lawsuit has the WWE owner responding to the request from Luck to secure over $23 million in a “prejudgment remedy” in anticipating over prevailing on his breach of contract claim for his termination as XFL Commissioner.
Motion for Prejudgment Remedy by MMA Payout on Scribd
Luck argues that the personal guaranty entered into by McMahon were “unconditional, absolute, continuing, and irrevocable.” The document pointed to by Luck states that McMahon waived all “circumstances that may…constitute a legal or equitable discharge or defense.”
Luck dismisses the XFL’s termination letter as one of pretext and “devoid of merit.” He addresses each of the allegations in the letter which highlighted the company’s contention for termination with cause.
McMahon’s lawyers argue that Alpha Entertainment, LLC, the XFL company currently in Chapter 11 bankruptcy, is an “indispensable party and that [Luck] was properly terminated for Cause under the Employment Contract.”
McMahon response to Luck PJR by MMA Payout on Scribd
McMahon’s position is that Luck breached the employment contract when he did not terminate a player when directed. Moreover, McMahon claims that it is Luck that “must prove that he is owed money from Alpha under the Employment Contract to establish a prima facie case for breach of the Guaranty.” Furthermore, McMahon argues that Luck is flouting the terms of the guaranty which extend Luck’s argument to suggest that the former commissioner’s position is that even if he committed a criminal act, that based on his position, McMahon would still need to compensate him in full.
In addition, McMahon argues that Luck has not established that he is entitled to the payments by Alpha under the contract. A dispute the parties have under Connecticut law. However, Luck argues that with the guaranty, McMahon waived his defenses.
Additional Memo in Support … by MMA Payout on Scribd
Payout Perspective:
As I wrote this post on Friday afternoon, news broke that the case has been stayed pending the Alpha Entertainment bankruptcy. This means that the above argument is on hold at this point. But one might infer that with the case stayed pending what is occurring in the bankruptcy case, the court may be leaning to the acknowledgement that Alpha Entertainment may be a necessary (or indispensable) party in this lawsuit which would not bode well for Luck’s claim under McMahon’s guaranty.
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