An Orange County (CA) Superior Court has ruled in favor of Manny Pacquiao in overturning a jury verdict based on the legal theory of illegality. Pacquiao’s argument was that the agreement he entered into with Paradigm were void because the company did not have a valid manager’s license in California.
Paradigm sill has a right to appeal the trial court ruling but we shall review the long and winding road to getting here.
First, here is The Legal Submission talking about it 3 years ago. Yes, the litigation process is slow.
Here is the timeline/highlights of the case:
June 25, 2021: Paradigm files a lawsuit against Pacquiao,
July 30, 2021: Pacquiao files cross-complaint alleging breach of contract, etc.
April 12, 2023 and May 2, 2023: Court conducted jury trial (it was the first phase of the trial as the Declaratory Relief would be determined later).
April 20, 2023 (after first day of trial): Pacquiao filed a Motion for Judgement of Nonsuit based on the illegality of the February 8, 2020, October 11, 2020 and October 23, 2020 agreements between Paradigm and Pacquiao.
April 24, 2023: Paradigm files Opposition to Pacquiao’s Motion for Judgment of Nonsuit.
April 26, 2023: Court denies Pacquiao’s Motion for Judgment of Nonsuit
April 27, 2023: Pacquiao moves for a directed verdict. Court denies motion.
May 2, 2023: Jury returns verdict and finds in favor of Paradigm and denies Pacquiao’s counterclaims. According to Kevin Iole, Pacquiao wanted the case settled for $4 million but Paradigm declined.
Paradigm was awarded $3.3 million for the breach of contract claim and $1.8 million for breach of the implied covenant of good faith and fair dealing for a total of $5.1 million. Based on the July 1, 2024 ruling all of that goes away.
Shortly after the verdict, Pacquiao’s attorneys filed a Judgment Notwithstanding Verdict premised on the theory that the contracts Pacquiao signed with Paradigm were void due to the lack of valid boxing managers license in California (a requirement to represent pro boxers).
Key to the Court ruling was testimony by Attar that he did not have a boxing license in California nor did anyone in his company. This was highlighted by Pacquiao’s attorney claiming that the agreements his client signed with Paradigm were void. Attar signed Pacquiao to an exclusive agreement which would have exclusive rights to Pacquiao’s Marketing Contracts, Commercial Opportunities and Entertainment Opportunities. It would also cover his fight contracts. You might recall, that Pacquiao was to fight Mikey Garcia in Saudi Arabia and then (Paradigm client) Conor McGregor in a boxing match. Therefore, one might argue that the agreements were boxing in nature.
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