TNA Vs WWE Lawsuit: Full Details
Posted by David Damage on Thursday, May 31, 2012
Under: News
Full
details have been revealed on TNA's lawsuit against World Wrestling
Entertainment and Brian Wittenstein. The details look at what exactly
TNA thinks Wittenstein gave to the company, why they are suing and why
they think WWE tampered with Ric Flair's TNA deal.
The lawsuit
itself is 37 pages. TNA says that Wittenstein signed a "severance
agreement" in August 2011, which means he was fired in spite of his
claims to the contrary. He agreed to a severance package in exchange for
not giving out any confidential information and returning any company
materials. A copy of the agreement was included in the filing, with only
the amount he was paid blacked out. Wittenstein then allegedly
"downloaded and took TNA's confidential, trade secret and proprietary
information after leaving his employment with TNA." It says that
Wittenstein, as Talent Relations Coordinator, had access to TNA's
computer network and information.
TNA's lawsuit says that they
are "uncertain of the full breadth of Wittenstein's" theft and thinks
that he took documents that included: copies of TNA's policies and
procedures, a spreadsheet containing personal and confidential
information regarding TNA's wrestling talent and staff, a spreadsheet
containing the terms of TNA's contracts "with its prospective, present
and past wrestling talent", a spreadsheet containing "confidential
information regarding activity, payment and royalty reports" for TNA
talents, a draft contract between TNA and one of its wrestlers, an
executed contract between TNA and one of its wrestlers and a draft
promotional agreement between TNA and a licensee. They said that their
severance agreement let him go work for WWE or any other competitor if
he "complied with his obligations" not to use the material or
information.
Wittenstein sent a memorandum to WWE "summarizing
TNA's contracts with its wrestling talent." In the email, included with
the suit, Wittenstein wrote: "Attached, please find a contract status
and terms chart for the TNA Wrestling roster. I combined a bunch of
different documents I had from there to put it all in one concise
spreadsheet that should capture all the relevant information you would
be interested in. Here are a few notes for you regarding the TNA deals."
TNA claims that all of the information was given to their primary
competitor, which explains the Unfair Competition aspect of the suit.
They think WWE knows all of the details of their talents contracts and
can make moves to acquire the talent whenever they want. Wittensten's
supervisor (which may be Michael Hayes because he was working as his
assistant) turned the material over to WWE's legal department and
Wittenstein was fired by the WWE in April. He worked for the company as a
Live Event Booking Assistant.
TNA didn't find out about the
problem until May 7, when WWE's Vice President of Legal/Business Affairs
Scott Amann contacted TNA's General Counsel Creede Williams, telling
them that Wittenstein gave WWE information about TNA without WWE asking
for it, and they fired him as a result of it. TNA was given a copy of
the information in "both hard and electronic form". They claim that WWE
had the material for three weeks before contacting them, and Amann "did
not explain the reason(s) for the delay". They also claim that
Wittenstein admitted giving them the information and "represented to TNA
that he did so at the request of WWE." TNA believes that WWE "solicited
and/or inducted" Wittenstein to give them the material and has "unclean
hands" in the matter.
TNA also "has reason to believe" that
WWE is using the information to "solicit or induce TNA's current
wrestling talent to end their contractual relationships with TNA." They
company said that on May 9, Ric Flair "attempted to terminate his
contractual relationship with TNA" and "made statements" that led TNA to
believe he was planning to join WWE. He was under exclusive contract
with TNa at the time. They say that the timing is "highly suspect" and
that Flair was in contract breach by not showing up for events including
the Sacrifice PPV.
TNA made another filing that requested two
hour depositions of Flair, John Laurinaitis and Paul Levesque (HHH).
There is no reference to Flair appearing at the WWE Hall of Fame
ceremony and Wrestlemania, which TNA previously signed off on. No other
TNA talents have been named as being tampered with by WWE. There have
been cases in the past of talent trying to have secret meetings with
other companies or seeing if there is any interest. The company put up a
$30,000 bond to prevent WWE and Wittenstein from using, destroying or
copying any material they may have in their possession. They want all of
the materials returned before a June 11 hearing in Nashville. TNA filed
the lawsuit there, as Wittenstein worked in their corporate offices at
the time. Since WWE has business there, TNA filed the suit there and WWE
is under TN jurisdiction.
They are suing for interference
with existing contracts, conversion, breach of contract, civil
conspiracy, unfair competition, and violation of the Tennessee Uniform
Trade Secrets Act. They are also suing Wittenstein for breach of duty of
loyalty. They want reimbursement of payments made to Wittenstein for
his severance as well as attorney fees and expenses. They also want a
court order to stop WWE and Wittenstein from ever revealing or using the
material, and to make Wittenstein return the material he may have. They
were specifically instructed not to "destroy" any of the material.
TNA claims there is a civil conspiracy as the two parties "conspired
and agreed" to share the information that Wittenstein "wrongfully took"
from TNA. They claim WWE would and "did use" that information "to
solicit and induce TNA's wrestling talent to breach their contracts with
TNA and enter into contracts with WWE." They said that because of the
"misappropriation and/or threatened misappropriation of TNA's trade
secrets, TNA will suffer damages, as well as immediate and irreparable
harm. TNA has no adequate remedy at law." The lawsuit reads that "money
damages cannot adequately compensate TNA, even if Defendants could
respond by paying money damage."
The filing says that TNA was
"damaged in an amount in excess of the court's minimal jurisdictional
limits" and that the conduct of WWE and Wittenstein "entitles TNA to an
award of exemplary damages in an amount in excess of this Court's
minimal jurisdictional limit."
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