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MMA promotion Combate Global turned down an offer to enter settlement discussions in regard to the lawsuit brought against them by former WWE and Impact Wrestling Champion Jose Alberto Rodriguez Chucuan aka Alberto el Patron before the United States District Court for the Southern District of New York on 1/4. The two sides were reffered to settlement discussions by a magistrate judge but Combate turned down that request, feeling they have nothing to offer and wanting to defend themselves in court.
In his lawsuit, Patron alleges he is owed $250,000 for his December 2019 MMA fight against Tito Ortiz and that Combate Global maintained control over his social media accounts even after the end of his relationship with the company. Patron claims that he signed an agreement with the company in September 2016 to become a “co-spokesman, color commentator, roving reporter, pre-fight and post-fight interviewer, on-camera personality, liaison for fighter relations and brand ambassador" for Combate Americas LLC, as the company was then known.
His lawsuit noted, "The Agreement stated that compensation for Plaintiff Jose Alberto Rodriguez Chucuan, Inc. was for two-hundred fifty thousand dollars ($250,000.00) for the first year, to be paid monthly ($20,833.34 per month). If Mr. Rodriguez appeared as an on-camera, ringside commentator for televised or pay-per-view events, then Plaintiff Jose Alberto Rodriguez Chucuan, Inc. received another ten thousand dollars ($10,000.00) per event."
Patron then stated in his lawsuit that the parties extended their deal for eight additional months, then agreed to extend for another two years beyond their initial terms, one year at a time, lawsuit noting, "The Agreement and the Amendment would total $883,333.36 ($83,333.36 for the first four months, $200,000 for the final eight months of the first term, then $600,000 for the final two years)." The lawsuit stated that Patron "performed all duties and services; and Defendants did not complain about the quality of those duties and services."
Patron's lawsuit states that the agreement was terminated in July 2017 but two months later, Combate made an offer for him to fight Tito Ortiz with the agreement being he'd be paid $500,000 to promote the fight and another $250,000 to fight. Alberto fought (and lost) to Ortiz in December 2019. He alleges that Combate has not paid him the $250,000 payday for the actual fight and ignored his invoices for the payment. As part of the promotion for the fight, Patron alleges he gave Combate access to his social media accounts and "now that the parties have no working relationship, the Defendants refuse to answer questions about the social media accounts."
In a motion to dismiss filed on 1/4, Combate instead argued that Patron had failed to state a cause upon which relief can be granted in regard to his claims and that he cannot even meet the burden of proof to show he has proper standing to even file the lawsuit, because he's not actually owed any money and they have paid him in full.
Combate's side stated that while Patron is claiming his original 2017 deal was extended, that was not the case. They filed several exhibits of evidence claiming to show their original deal was indeed terminated in July 2017, including a Termination agreement signed by Patron. Combate claims in the Motion that the true timeline is that they approached Patron's side seeking to learn his interest in working on a podcast and potentially doing some announcing for them as part of a new, separate deal that was not paid under the terms of the 2017 agreement. The motion filed includes correspondence between the two sides about a new deal being worked out with Combate pointing out to the court there was never any mention of returning working under the 2017 agremeent's terms.
Instead, Combate claims that the two sides worked via a "gentleman's agreement" between November 2017 (shown in the form of an email) and February 2019r with Patron being paid under new terms. Then, in February 2019, when the two sides began discussing Patron competing in an MMA fight against Tito Ortiz to be held on December 7, 2019, they entered into a signed agreement.
According to Combate's filing, Patron was to be paid $250,000 to fight Ortiz and an additional $500,000 to promote the fight. Had Patron won the Ortiz fight, he would also have earned a $500,000 bonus. Patron did not win the fight. Initially, the fight was won by Ortiz, but several months later, was ruled a no decision by the Texas Department of Licensing and Regulation, which oversaw the fight that evening in Hidalgo, Texas. Without that victory, Combate states in their Motion that Patron was owed $750,000 total and that amount is not in dispute.
What is in dispute, is whether Patron received the entirety of the $750,000. As noted, Patron alleged before the court that he is still owed $250,000 by the MMA promotion.
Combate instead argued in their motion to dismiss that Patron had already been paid in full well before his filed a lawsuit, citing that they paid Patron "two (2) separate payments of Two Hundred Fifty Thousand Dollars ($250,000.00) on January 24, 2020 and Two Hundred Fifty Thousand Dollars ($250,000.00) on February 6, 2020, and prior to that, Defendant CA, LLC paid Plaintiffs an additional Two Hundred Fifty Thousand Dollars ($250,000.00) in twenty (20) bi-weekly increments of Twelve Thousand Five Hundred Dollars ($12,500.00) between the dates of March 14, 2019 and December 29, 2019 as proven by the attached Accounting Statement."
Combate also argued that while Patron "falsely" claims the twenty bi-weekly payments of $12,500 were for work done under the original, terminated 2017 deal, they have filed an exhibit showing payments to him over the course of their working relationship that "delineates that Defendant CA, LLC paid Plaintiffs’ an amount totaling roughly Two Hundred Thousand Dollars ($200,000.00) for Plaintiffs’ services for the “as needed” work and then Plaintiffs were paid separately the full Seven Hundred Fifty Thousand Dollars ($750,000.00) as per the terms of the Term Sheet and Amended Term Sheet both executed in 2019."
As previously noted on PWInsider.com, Patron is suing for breach of contract, unjust enrichment, conversion (for not turning over the social media accounts) seeking:
*compensatory damages in the amount of $250,000.00 for Defendant’s breach of contract, or quantum meruit or unjust enrichment
*Interest of at least $26,250.00 due and owing from and after December 31, 2019 calculated as follows through April 15, 2021, and as determined by the Court for the days following April 15, 2021 up to the date judgment is rendered: 7% interest of $26,250.
*For an award of Plaintiffs’ costs and reasonable attorney’s fees;
*To return control of all social media accounts to Plaintiffs.
*For such other and further relief as may be just and proper.
Combate did not respond to the social media account claims in their Motion to Dismiss.
Patron was slated to respond to Combate's Motion to Dismiss by 2/4. Until he does, the court cannot rule on Combate's motion.
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