Poker News

A group of more than 70 Tennessee poker players have filed a class action lawsuit against the Chattanooga Billiard Club (CBC) and its owner Phil Windham for allegedly cancelling an annual poker tournament for which the players qualified.

In the Complaint, filed by attorney Hoyt Samples, the plaintiffs explain that the CBC hosted a free poker tournament every Monday night for more than two years. Anywhere from about 70 to 100 players would participate. The winner of that tournament would receive a CBC gift certificate in the amount of 40 cents times the number of players in the event. Those who reached the nine-handed final table plus the two players on the final table bubble would qualify for the free monthly tournament.

The winner of the monthly tournament would receive a check in the amount of 40 cents times the number of players in the weekly tournaments leading up to it. Typically, the next few finishers would also receive CBC gift certificates, though it does not appear those were formal, listed prizes. The weekly tournament winners and the monthly tournament final table members all qualified for the free annual tournament.

The winner of the annual tournament would receive 20 cents times the number of players in all of the weekly tournaments (we are assuming 20 cents is multiplied by all of the weekly participants – this is not exactly clear in the Complaint). All told, CBC contributed one dollar towards the weekly, monthly, and annual tournaments combined for each weekly participant.

The annual tournament was a heavily publicized event. Flyers were posted at CBC locations and the tournament was promoted on the CBC website. According to the Complaint, the flyer read, among other things, “Monthly Winners Also Qualify for a Huge, Annual Deep Stack Tournament … WITH AN EVEN BIGGER PURSE!”

Though the tournaments were all free, the CBC and Phil Windham had a natural incentive to host them, as the venue would be filled with patrons who would order food and drink.

The Complaint alleges that in late spring of this year, Windham announced that the weekly and monthly tournaments would be cancelled after the big annual tournament, to be held in August. Windham did say it was possible that the tournaments would continue if food and drink sales made it worth it.

On June 25, Michael Morelan, the unpaid tournament director, asked a CBC assistant manager when the annual tournament would be. The assistant manager checked with Windham who said there would be no annual tournament and that was the last week for the events, period. Morelan called Windham for clarification and Windham told him, “This is the last week of poker.  I am not going to put out any more money for poker.  It is my money and I am going to keep it and there will be no annual tournament.”

When Moreland scolded Windham for misleading the players, Windham told him that if Morelan would put up half the prize money, the tournament would proceed. As Morelan made no money from the tournaments, he refused.

The lawsuit lists eight counts against the CBC and Windham:

Count I: Consumer Protection Act Violation
Count II: Fraud, Deceit, and Misrepresentation
Count III: Civil Conspiracy and Intentional Misrepresentations
Count IV: Intentional Misrepresentations
Count V: Negligent Misrepresentations
Count VI: Unjust Enrichment
Count VII: Breach of Contract
Count VIII: Class Action

In a nutshell, the plaintiffs allege that the CBC and Windham misled them when promising the annual tournament and the prizes to be won. Additionally, because of this deceit, the CBC and Windham benefited monetarily because the poker tournaments filled the venue with paying customers.

The plaintiffs seek compensation for monetary losses incurred from their participation in the tournaments. The losses were not specifically defined, but they may presumably have to do with the prize money at the annual tournament and perhaps things like gas money or food and drink purchases. The first count, the Consumer Protection Act Violation, also prescribed triple damages. Additionally, the plaintiffs seek $50,000 in punitive damages, attorney’s fees, and reimbursement for discretionary costs.

One Comment

  1. Twothreeofclubs says:

    CBC gets in there Bar/Resturant 70-100 people for poker tourney each week. Then they cant make any money. If i read this whole thing wrong please correct me. Now CBC doesnt want to hold the annual tournment why? Sounds like they dont want to pony up the prizes for the BIG game now.
    2-3ofclubs in Mn

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