Get ready for some fireworks. In a decision filed on September 14th, United States District Judge James Nowlin denied a motion for a Temporary Restraining Order filed by Deliverance Poker. The case surrounds World Series of Poker (WSOP) November Nine member Michael “The Grinder” Mizrachi allegedly jumping ship to be sponsored by Full Tilt Poker in the middle of the Main Event.
The five-page decision succinctly notes, “After reviewing Plaintiff’s pleadings, the Court again finds that Plaintiff has failed to satisfy the four-part test for the entry of an ex parte Temporary Restraining Order.” The case, which was heard in the United States District Court for the Western District of Texas, pits Deliverance Poker LLC against Tiltware LLC and Mizrachi. It’s numbered 10-CV-664-JRN.
The contract between Mizrachi and Deliverance, which was obtained by Poker News Daily, was signed on July 13th, 2009. On September 7th of this year, the Court denied Deliverance Poker’s first attempt at a Temporary Restraining Order on the grounds that Deliverance did not include a “relevant contract.” On September 10th, the poker site once again asked for a Temporary Restraining Order and this time included the contract.
Why deny Deliverance’s request? Judge Nowlin wrote in part, “Even with the additional support attached to the Plaintiff’s amended pleadings, this Court is still not convinced there is ‘substantial likelihood’ that Plaintiff will prevail on the merits.” Also at issue is the Effective Date in Mizrachi’s contract, which is given as “immediately upon the closing of Deliverance of an offering of debt or equity interests in Deliverance which raises no less than One Million Dollars.”
Addressing whether or not the contract’s Effective Date had already occurred, Judge Nowlin commented, “There is no indication anywhere in Plaintiff’s pleadings that the ‘Effective Date’ has taken place.” Mizrachi’s contract also has a clause stating that the contract automatically terminates if the Effective Date has not occurred by August 24th, 2009, nearly one year before he turned out to the later stages of the WSOP Main Event at the Rio decked out in Full Tilt Poker gear.
Judge Nowlin also argued that Deliverance Poker had not successfully rationalized why it would incur a “substantial threat of irreparable injury,” one of the four factors required for a court to issue a Temporary Restraining Order. He explained, “To the extent that a general rule can be formulated, that rule is: monetary damages alone are not enough to establish an irreparable injury… Simply stating… that the Plaintiff is not receiving the benefit of its bargain, and the damages cannot be accurately assessed, does not pass muster.”
Nowlin concluded by denying the motion for the Temporary Restraining Order and asserting, “Plaintiff shall not file any amended memoranda in support of additional Temporary Restraining Orders regarding this same matter.”
Mizrachi’s contract called for a “membership interest” in Deliverance of 1.75% as of the Effective Date and a $150,000 cash payment. The money could be forfeited if Deliverance terminated the agreement pursuant to the terms laid out or if Mizrachi failed to participate in at least six poker tournaments donning Deliverance gear.
Mizrachi made a deep run in the 2010 WSOP Main Event and will return to the Rio in November with the seventh largest stack at 14.4 million, well behind chip leader Jonathan Duhamel’s mound of 65.9 million. The $10,000 buy-in poker tournament resumes on November 6th and will dish out nearly $9 million to its winner.
“The Grinder” will be participating in a press event hosted by Full Tilt Poker on Monday at the Soho Hotel in London during WSOP Europe. He’s one of seven Full Tilt Poker players to make the November Nine, although the site will only be able to send three in official Full Tilt Poker gear according to WSOP regulations.
