The online poker site Deliverance Poker has filed a complaint alleging breach of contract against 2010 World Series of Poker (WSOP) November Niner Michael “The Grinder” Mizrachi and his alleged new sponsor, Full Tilt Poker.
The complaint, filed on September 7th in the U.S. District Court for the Western District of Texas in Austin, is for Mizrachi’s alleged breach of contract with Deliverance Poker. The company is listed in the complaint as being “organized” in the state of Texas, although no physical address is given. Full Tilt is also named as a defendant in the suit through its parent company, Tiltware LLC, for its “tortious interference” in signing Mizrachi after he ran deep in the WSOP Main Event.
Poker News Daily has obtained a copy of the complaint in which Deliverance Poker provides background to its allegations. According to court documents, Deliverance Poker “and Defendant Mizrachi executed a written contract on or about July 12th, 2009.” Deliverance Poker states the terms of the agreement: “Plaintiff (Deliverance Poker) would 1) pay Defendant Mizrachi $150,000, 2) Provide a membership interest (part ownership of the site) of 1.75% in Plaintiff’s corporation, and 3) Advance expenses related to poker tournaments in which Defendant Mizrachi would participate.” Deliverance Poker also states that, as a part of the agreement, Mizrachi would “compete in tournaments, make personal appearances to promote Plaintiff’s website, exclusively wear memorabilia promoting Plaintiff’s website, and give interviews.”
Deliverance Poker says in its complaint that Mizrachi abided by the terms of the contract until July, participating “in over 20 tournaments” on behalf of the site. One of the tournaments that Deliverance Poker is citing could very well be Mizrachi’s win in the $50,000 Poker Player’s Championship, where he captured the title while wearing a Deliverance Poker patch. What is in question, however, is what occurred during his run to the final table of the Main Event.
Court documents from Deliverance Poker’s attorney, William Pieratt Demond of the law firm Connor and Demond in Austin, Texas, allege that Mizrachi “subsequently entered into a separate contract with Defendant Tiltware. This second contract essentially replaced Plaintiff as Defendant Mizrachi’s official sponsor, thereby resulting in damages to Plaintiff.” The complaint then details out what relief Deliverance Poker is looking for.
In its two-count complaint, the company alleges that, by Mizrachi’s pickup of Full Tilt Poker and Full Tilt’s usage of his likeness on their website, damages have been incurred by Deliverance Poker. Tiltware, the company alleges, knew of the contract and willingly violated it by signing Mizrachi, which is “tortious interference,” the second complaint in the court documents. “Tortious interference” is a legal term that implies one party convinced another party to violate a previously signed contract.
The Deliverance Poker complaint does not name a dollar amount that they are seeking, but the company is looking to the court to reimburse it for lost earnings, profits, and earning capacity. Deliverance is also seeking prejudgment and post-judgment on the complaint and appropriate attorney fees. With these pronouncements, it is possible that Deliverance Poker is looking for a high six-figure judgment.
At this time, both rooms are using Mizrachi’s likeness to promote their sites. While he is not listed as either a “Full Tilt Pro” or a “Friend of Full Tilt,” Mizrachi is mentioned as one of the site’s “WSOP 2010 Finalists” and it’s noted that Mizrachi “plays online at Full Tilt Poker.” Over at the Deliverance Poker website, the entire Mizrachi clan – Michael and brothers Eric, Robert, and Donny – are prominently featured on the front page.
While the legal wrangling goes on, Mizrachi has remained relatively silent, save for one Tweet he made regarding the situation. On Thursday afternoon, he chirped, “In light of this week’s news, remember there are two sides to every story. I look forward telling my side and the truth coming out.” Attempts by Poker News Daily to contact Tiltware and Demond went unanswered as of press time.
