By Steve Kim
An effort by Al Haymon to dismiss the $100 million lawsuit filed against him by Top Rank, Inc. for violating anti-trust laws was dismissed Wednesday afternoon by United States District Court (Central District of California) judge John F. Walter.
Much of this stems from the rollout of Premier Boxing Champions (PBC), a series founded by Haymon and which is funded by the war chest of Waddell and Reed that has allowed them to buy airtime on various networks to stage boxing cards.
Top Rank filed a lawsuit earlier this year, reviewed by the very same court and judge in October. Two separate rulings were handed down – Top Rank was issued a dismissal with leave to amend its complaint versus Haymon and his defendants; whereas an outright dismissal was handed down in Top Rank attempting to name investor Waddell & Reed as a co-conspirator.
An amended complaint was filed by Top Rank just within the issued October 30 deadline. Following Top Rank’s refiling, Haymon’s legal team followed up with a second motion for dismissal on November 13. In turn, Top Rank submitted a Motion of Opposition ten days later (November 23), with a Reply filed by Haymon Defendants the following week.
This time around, the judge’s ruling meant a next-step victory for Top Rank, though there remains a long battle ahead.
“Although the Haymon Defendants’ arguments are very persuasive, in light of the legal standard governing motions to dismiss under Rule 12(b)(6), the Court concludes that the issues raised by the Haymon Defendants with respect to Top Rank’s federal antitrust claims are more appropriately resolved on a motion for summary judgment,” Judge Walter said in the ruling, of which a copy was obtained by BoxingScene.com. “With respect to Top Rank’s state law claims, the Haymon Defendants merely incorporate their arguments from their prior motion to dismiss the First Amended Complaint without identifying which arguments would remain viable in the event Top Rank adequately alleged its federal antitrust claims.
“Although the Court is not convinced that the Second Amended Complaint cures all of the issues raised by the Haymon Defendants with respect to the state law claims, the Court will not entertain any additional motions to dismiss. The parties are free to raise any issues with respect to the state law claims in their anticipated cross-motions for summary judgment.”
The ruling means that the case will now proceed to discovery, thus canceling a scheduled January 11 hearing. While the responsibility still lies with Top Rank to provide sufficient evidence to validate the claims filed in its complaint, it also means the case will now proceed to discovery – which Haymon’s side has managed to avoid in several lawsuits filed against its empire.
“The court denied the Haymon defendants attempt to dismiss the case and the case will now proceed to discovery,” Daniel Petrocelli, lead attorney for Top Rank explained to BoxingScene.com. “We're confident that we will elicit all the evidence that will prove our allegations.
“[The process of discovery] begins now based on the court’s ruling today. That takes a number of months. The parties have to turn over relevant files and documents. Mr. Haymon and others have to submit to depositions where they are examined under oath and then the parties prepare their cases for trial by jury.”
This case will be adjudicated at the Federal Court of Los Angeles. It remains to be seen how much of what is found in discovery will be made public.
“The lawsuit is a public proceeding; however the parties can ask the court to seal various parts of the case or various pieces of evidence if they believe there's a need to do so,” Petrocelli further explained. “For example, there could be highly confidential proprietary information that may be entitled to protection from public purview.
“But that depends on the rulings of the court.”
Efforts by BoxingScene.com staff to seek comment from PBC were unsuccessful as this goes to publish.
Steve Kim is the news editor for BoxingScene.com.
