More twists and turns in the Mizrachi vs. Deliverance Poker case

Last week news filtered down to the poker world that World Series of Poker Players Championship winner and November Nine member, Mike “The Grinder” Mizrachi was named as the plaintiff in a lawsuit filed by Deliverance Poker, a former sponsor of Mizrachi.

In the lawsuit Deliverance Poker claimed Mizrachi violated the terms of the contract he signed with Deliverance Poker on July 13^th, 2009. The main point of contention is Mizrachi abandoning the Deliverance Poker logo in favor of Full Tilt Poker’s midway through his deep run in the 2010 WSOP Main Event.

The first verdict on the matter was issued yesterday when United States District Judge James Nowlin denied Deliverance Poker’s motion for a temporary restraining order against Mizrachi. In a 5-page decision Judge Nowlin stated that, “After reviewing Plaintiff’s pleadings, the Court again finds that Plaintiff has failed to satisfy the four-part test for the entry of an ex parte Temporary Restraining Order.”

The case will revolve around what appears to be a very confusing contract signed between Mizrachi and Deliverance Poker, which PokerNewsDaily.com has received, and the strange wording on when the contract is initiated. On this point the contract states: “immediately upon the closing of Deliverance of an offering of debt or equity interests in Deliverance which raises no less than One Million Dollars.”

When deliverance Poker first filed for a temporary restraining order, they were denied because Deliverance failed to supply the contract. Even after supplying the court with the contract Judge Nowlin stated, “Even with the additional support attached to the Plaintiff’s amended pleadings, this Court is still not convinced there is ’substantial likelihood’ that Plaintiff will prevail on the merits.” Judge Nowlin went on to say, “There is no indication anywhere in Plaintiff’s pleadings that the ‘Effective Date’ has taken place.”

PokerNewsDaily is also reporting that “Mizrachi’s contract also has a clause stating that the contract automatically terminates if the Effective Date has not occurred by August 24th, 2009…”All-in-all, it seems that Mizrachi felt the contract had expired and signed with Full Tilt Poker, while deliverance Poker felt the contract was still valid. Apparently everything will hinge on precisely when the contract went into effect, as well as if the contract was terminated prior to this point.

Chances are there will be many twists and turns in this case as the World Series of Poker final table nears in November. With Mizrachi one of the odds on favorites, and by far the most experienced player at the final table this is a very big deal for a small site like Deliverance Poker, and I fully expect them to fight tooth and nail on the matter. Meanwhile, the distraction can’t be very helpful for Mizrachi as he prepares for the Main Event final table, and a place in poker history.