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Ex-Lawyer for Pacquiao Properly Represented Plaintiff in Suit Against Former Client—C.A.
Justices Say There’s No ‘Substantial Relationship’ Between 2005 Litigation and Suit Brought Against the Boxer in 2021
By a MetNews Staff Writer
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MANNY PACQUIAO former boxer |
Former world champion boxer Manny Pacquiao has lost a bout in the Court of Appeal, with justices of the Fourth District’s Div. Three holding that his lawyer in a 2005 litigation was properly not disqualified from representing Paradigm Sports Management, LLC in an action filed in 2021 against the ex-client.
Justice Thomas A. Delaney authored the opinion which was not certified for publication. It affirms an order by Orange Superior Court Judge Walter P. Schwarm permitting New York attorney Judd Burstein and his firm (along with members of the San Diego firm of Price Pelletier) to continue as counsel for Paradigm.
Delaney agreed with Schwarm that there is no “substantial relationship” between the two lawsuits, precluding disqualification.
However, the opinion is of academic interest, only, in light of a subsequent trial court action.
Appellant’s Arguments
Pacquiao—known in sports circles as “PacMan”—argued on appeal:
“Burstein previously represented Pacquiao in a lawsuit which bears striking similarities to the present case brought by Burstein on behalf of Paradigm Sports Management, LLC…and based on purported contracts between Paradigm and Pacquiao. Both actions involve allegations of breach of contract stemming from a promotional and/or management contract relating to boxing services. Both actions involve attempts to control when, how and whom Pacquiao can fight, including motions for a preliminary injunction to impede Pacquiao’s ability to schedule and/or participate in upcoming fights. And both lawsuits involve deals being made behind Pacquiao’s back and at his expense.” The brief, filed by lawyers at Haight Brown & Bonesteel LLP, continues:
“There are overwhelming grounds for the mandatory disqualification of Burstein and Price Pelletier in the underlying action. The trial court erred in denying Pacquiao’s motion to disqualify these attorneys, who presumptively possess material confidential information obtained during Burstein’s prior representation of Pacquiao.”
It asserts:
“Put simply, Burstein has not merely peeked behind the curtain. He lived behind the curtain, privy to Pacquiao’s most candid thoughts and strategies relating to litigation, settlement and his professional boxing contracts for an extended period of time and under circumstances where Pacquiao was entirely at Burstein’s mercy.”
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JUDD BURSTEIN New York lawyer |
2005 Action
In 2005, Pacquiao sued M&M Sports Inc. in the U.S. District Court for the Southern District of New York. The complaint, signed by Burstein, alleges:
“This is an action that arises from the shameless exploitation of a boxer by a greedy and unscrupulous boxing promoter. Pacquiao is one of today’s great boxers, both in terms of talent and commercial viability. Broadcasters and sites, such as casinos, pay millions of dollars to present his matches, in which he literally risks his life. Unfortunately, Pacquiao has not received his fair share of those monies due to the misconduct of Defendants M&M Sports Inc….and its principal, Murad Muhammad….”
The plaintiff sought “in no event less than” $13 million and “a judgment declaring that Plaintiff is no longer bound to any extant promotional agreement between himself and M&M.” While the jury was deliberating, the action was settled, the details of which were confidential but, Burstein publicly proclaimed at the time, the terms were “overwhelmingly favorable to Pacquiao.”
2021 Suit
A June 25, 2021 complaint brought by Paradigm against Pacquiao—identifying him by his legal name of “Emmanual Dapidran Pacquiao”—alleges that the boxer breached a contract giving the plaintiff the exclusive right to arrange fights for him by agreeing, through clandestine arrangements, to go into the ring with welterweight champion Errol Spence Jr. Pacquiao brought a cross complaint seeking damages and declaratory relief.
(The Spence/Pacquiao bout did not take place, though not based on the litigation.)
Ruling on a 2023 disqualification motion, Schwarm on Feb. 14, 2023, determined that any confidential information to which Burstein became privy through the 2005 representation “is not directly at issue or critically important in” the litigation before him. Pacquiao filed a notice of appeal from the order and also sought a writ in the Court of Appeal. The writ petition was summarily denied and the case proceeded to trial.
Delaney’s Opinion
In his opinion affirming Schwarm’s order, Delaney said:
“The 2005 case and the current case are factually similar in that they involve (1) contracts between Pacquiao and companies that manage or promote fighting careers; and (2) disagreements over the enforceability of those contracts given the conduct of the parties. Pacquiao, however, acknowledges the two cases concern different contracts with different entities.”
He declared:
“In short, the factual similarities between the two cases are general and minimal.”
The justice continued:
“The same is true for the legal questions posed in the two cases. They involve alleged contract breaches and fraudulent conduct to induce Pacquiao to contract. The general legal principles would be similar, but the 2005 case was filed in New York federal district court and the current case in California state court. And because the two cases involve different contracts and opposing parties, the legal questions posed would be tied to specific contract terms and conduct of different parties. It thus was proper for the trial court to conclude there was no similarity in the legal issues posed by the two cases.”
Delaney agreed with Schwarm that that information possessed by Burstein “about Pacquiao’s finances in 2005 was not material to the current case.”
Jury’s Verdict
Delaney recited:
“The case proceeded to trial, and the jury entered a 9–3 verdict in favor of Paradigm for breach of contract, awarding Paradigm $5.1 million in damages, and a 10–2 verdict in favor of Paradigm on Pacquiao’s cross-complaint.”
His information is not up-to-date. Pacquiao moved for judgment notwithstanding the verdict and on July 1, Schwarm issued a tentative ruling that Paradigm could recover nothing because it lacked the requisite license to book or manage boxing matches.
He took the matter under submission and on Monday, the judge signed a “final statement of decision” saying:
“[T]he court finds that Mr. Pacquiao has demonstrated, by a preponderance of the evidence, that [Paradigm] did not have the required license under Business and Professions Code section 18642.
“Since [Paradigm] did not have the required license under Business and Professions Code section 18642. the court finds that the Contract is illegal….Therefore, the court finds that the Contract is unenforceable.”
He granted declaratory relief sought by Pacquiao in his cross-complaint.
The appellant’s opening brief says:
“Pacquiao respectfully requests that this court reverse the trial court’s order denying the motion to disqualify Burstein and Price Pelletier, vacating the jury verdicts and any subsequent entry of judgment in Paradigm’s favor obtained through Burstein and Price Pelletier’s representation of Paradigm at trial.”
The jury’s verdict having been vacated by Schwarm, there is the prospect that the Fourth District’s Div. Three will vacate its opinion and dismiss the appeal based on mootness.
The case is Paradigm Sports Management v. Pacquiao, G062333.
Presidency of Philippines
On Sept. 19, 2021, Pacquiao declared his candidacy for the presidency of the Philippines in the 2022 election. He had served in the House of Representatives and the Senate in that nation.
In a field of 10 candidates, he came in third.
The day after announcing his candidacy, Pacquiao told a reporter that he was retiring from boxing. His career as a fighter stretched over 26 years.
Pacquiao was the first boxer to win world titles in eight weight divisions: flyweight, super bantamweight, featherweight, super featherweight, lightweight, light welterweight, welterweight, light middleweight. At the age of 40, he became the oldest welterweight world champion in history.
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