HDNet v. Zuffa Remanded to State Court
The U.S. District Court for the Northern District of Texas has
granted HDNet's emergency motion to remand its lawsuit against
Zuffa to Texas State Court.
Zuffa had removed the declaratory judgment action concerning
Randy Couture (Pictures)'s promotional contract to Federal
Court last month. Wednesday's ruling represents a procedural
victory for HDNet and Couture.
The issue at the center of the ruling was whether or not HDNet's
use of a Nevada corporation as party to the suit was done solely to
maneuver around Federal Court jurisdiction by destroying diversity
of citizenship, which exists when parties in a lawsuit are from
HDNet entered into contract with Couture through a Nevada LLC owned
by a Nevada corporation established shortly before the lawsuit was
filed. In support of the case's removal to federal court Zuffa
alleged that the action represented a collusive manipulation of the
court's jurisdiction and asked the court to look beyond the
company's legal citizenship in Nevada.
In his order granting the motion to remand, Senior Judge A. Joe
Fish wrote that the "timing and circumstances surrounding the
formation of the HDNet Nevada entities presents circumstantial
evidence of collusive manipulation, but without more the defendant
has not discharged this heavy burden."
Judge Fish went on to state that the court found that "though the
circumstantial evidence suggests the plaintiff might have been
motivated in part by the underlying lawsuit … the court also finds
the plaintiff ‘was also influenced by other factors unrelated to
The action now returns to District Court in Dallas.
Adam Swift is the Editor of MMAPayout.com and a regular contributor to
GRRRR!!!More on Sherdog.com Mobile