Mizrachi Deliverance Poker Lawsuit Dismissed

Michael MizrachiLast week, U.S. District Court Judge James Nowlin dismissed claims by Deliverance Poker against 2010 WSOP Main Event final tablist Michael Mizrachi and Tiltware, LLC, the company behind Full Tilt Poker.

In the first judgment, Judge Nowlin ordered that this case be dismissed without prejudice. This is legal jargon that means that if there were new evidence, then it would be possible to re-open the case in Federal or state court.

At the center of the case were two issues. The Judge was required to determine whether the contract between Michael “The Grinder” Mizrachi and Deliverance Poker had actually come into effect and whether the case could be heard under current jurisdictional laws. In the 14-page decision drafted by Judge Nowlin, both issues were addressed.

Regarding the contract between the two parties, Judge Nowlin wrote in his decision that the contract had not reached its 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,”.

In addition to needing the start up capital to get the online venture started, Benavides also needed a face for the online poker site and “Who better than The Grinder,” Judge Nowlin stated. Benavides began seeking venture capitalist backing in order to get Deliverance Poker off the ground, while Michael Mizrachi upheld his end of the deal by wearing Deliverance Poker’s apparel to represent the site after signing a Promotional Representation Agreement in July 2009. However, by the end of the 2010 World Series of Poker, “The Grinder” informed Deliverance Poker that he was no longer representing the site after receiving a very attractive offer from Tiltware.

In court, Judge Nowlin noted that when Mizrachi joined Full Tilt Poker, Deliverance Poker’s “marketing strategy collapsed, its investors fled, its website crumbled, and Benavides’ dreams were dashed.” However, it was determined that the contract between Mizrachi and Deliverance Poker had never actually become an unenforceable contract due to terms that stipulated if sufficient capital had not been raised to bring Deliverance Poker to life by August 2009 then it would no longer be valid.

Although the case was dismissed in court, Judge Nowlin stated that Deliverance Poker could re-file the case in state court “the minute this Order is published.”

It is unknown what is in store for the future of Deliverance Poker. After having an active website and poker room at the time of the 2010 WSOP Main Event, there is currently nothing on the domain deliverancepoker.com.