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Deliverence Poke Case Against Michael Mizrachi Dismissed
Written On 3/31/11 By Anthony Aperman :
Benavides defeated in Texas court
Top poker pro Michael Mizrachi and Full Tilt Poker owners Tiltware LLC are off the hook in a breach of contract case over branding brought by Deliverance Poker last year
Judge James Nowlin of the US District Court for West Texas this week dismissed the Delverance claims, albeit without prejudice - a legal condition allowing Deliverance to resubmit its case if it can produce new and original evidence.
Judge Nowlin found that his court had jurisdiction in the case, and that the contract allegedly breached had not actually reached full 'activation'
“Deliverance Poker, LLC, is Carlos Benavides III’s dream of an online poker company that became a reality (on paper at least) when he caused the company to be organized under the laws of Texas,” Judge Nowlin's findings reveal.
He goes on to outline that Benavides needed a respected face associated with his venture that would enable him to inspire confidence and investment from interested parties, and Mizrachi provided that face, wearing branded apparel during the World Series of Poker championships in 2010 and signing a promotional agreement.
However, the agreement included a provision that if the capital required for the venture had not been raised and used on the Deliverance Poker project by August 2009, it would be regarded as terminated.
It was this clause that the judge relied on to find that the deal was unenforceable when Mizrachi accepted a better offer from Full Tilt and ended his Deliverance involvement, causing, in the judge's words a catastrophic failure of the Deliverance project:: “...marketing strategy collapsed, its investors fled, its website crumbled, and Benavides’ dreams were dashed.”
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