westchester fire insurance company v. bellator sport worldwide, inc. et al complaints

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  • 8/3/2019 WESTCHESTER FIRE INSURANCE COMPANY v. BELLATOR SPORT WORLDWIDE, INC. et al Complaints

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    1082561.1

    UNITED STATES DISTRICT COURT

    FOR THE NORTHERN DISTRICT OF ILLINOIS

    EASTERN DIVISION

    WESTCHESTER FIRE INSURANCE

    COMPANY,

    Plaintiff,

    v.

    BELLATOR SPORT WORLDWIDE,INC.; andZUFFA, LLC d/b/a ULTIMATEFIGHTING CHAMPIONSHIP

    Defendants.

    )

    )))))))))))

    )

    Case No. 11-cv-8831

    COMPLAINT FOR DECLARATORY JUDGMENT

    Plaintiff Westchester Fire Insurance Company (WESTCHESTER), by and through its

    attorneys, Stefan Dandelles and David Brown of Wilson, Elser, Moskowitz, Edelman & Dicker

    LLP, in support of its Complaint for Declaratory Judgment against Defendants Bellator Sport

    Worldwide, Inc. (BELLATOR) and ZUFFA, LLC d/b/a/ ULTIMATE FIGHTING

    CHAMPIONSHIP (ZUFFA), alleges as follows:

    INTRODUCTION

    1. This is an insurance coverage dispute between WESTCHESTER and

    BELLATOR.

    2. WESTCHESTER issued to BELLATOR a Directors & Officers and Company

    policy bearing number G24126833 001 for the Policy Period April 19, 2010 to April 19, 2011

    (the Policy). A true and correct copy of the Policy is attached hereto as Exhibit 1.

    3. BELLATOR seeks coverage under the Policy for a lawsuit filed against it by

    ZUFFA, wherein ZUFFA alleges BELLATOR misappropriated and improperly used ZUFFAs

    Case: 1:11-cv-08831 Document #: 1 Filed: 12/13/11 Page 1 of 8 PageID #:1

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    21082561.1

    confidential information and trade secrets (the Underlying Lawsuit). A copy of the Complaint

    filed in the Underlying Lawsuit is attached hereto as Exhibit 2.

    4. WESTCHESTER has denied coverage to BELLATOR under the Policy for the

    Underlying Lawsuit.

    5. WESTCHESTER is entitled to a declaration from this Court that the Policy

    affords neither a defense nor indemnity to Bellator with respect to the Underlying Lawsuit.

    PARTIES

    6. On information and belief, Defendant BELLATOR is a Delaware corporation

    with its principal place of business in Chicago, Illinois.

    7. Plaintiff WESTCHESTER is a Pennsylvania corporation with its principal place

    of business in Philadelphia, Pennsylvania.

    8. On information and belief, ZUFFA is a Nevada company with its principal place

    of business located in Clark County, Nevada. ZUFFA has been joined herein solely based on its

    status as plaintiff in the Underlying Lawsuit so as to be bound by the judgment to be rendered in

    this case. WESTCHESTER is willing to dismiss ZUFFA from this action as long as ZUFFA

    stipulates and agrees to be bound by the judgment entered herein, or to allow ZUFFA to file an

    appearance and answer only, so that it will be bound by the judgment entered herein.

    JURISDICTION AND VENUE

    9. This court has jurisdiction over this action pursuant to 28 U.S.C. 1332

    respecting diversity jurisdiction insofar as it involves citizens of different states and the amount

    in controversy exceeds $75,000, exclusive of interest and costs.

    Case: 1:11-cv-08831 Document #: 1 Filed: 12/13/11 Page 2 of 8 PageID #:2

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    31082561.1

    10. Venue is appropriate under 28 U.S.C. 1391 because BELLATOR is located in

    this District, and the subject Policy under which coverage is sought was issued to BELLATOR in

    this District.

    UNDERLYING LAWSUIT AND BACKGROUND FACTS

    11. ZUFFA and BELLATOR are competitors in the Mixed Martial Arts (MMA)

    entertainment industry.

    12. ZUFFA filed its Complaint in the Underlying Lawsuit in Nevada state court on

    July 28, 2010.

    13. ZUFFA alleges in the Underlying Lawsuit that BELLATOR has conspired with

    others to misappropriate Zuffas confidential information and trade secrets in an effort to

    unfairly compete against Zuffa in the MMA marketplace.

    14. ZUFFA seeks compensatory and exemplary damages, and an injunction against

    BELLATOR seeking to prohibit BELLATOR from a. continuing to misappropriate Zuffas

    Confidential Information and Trade Secrets and/or its operational documents; b. conducting any

    business operations utilizing, in any manner whatsoever, Zuffas Confidential Information and

    Trade Secrets and/or its operational documents; c. aiding and abetting the improper disclosure by

    any other party of Zuffas Confidential Information and Trade Secrets and/or its operational

    documents.

    15. BELLATOR retained counsel to represent its interests in the Underlying Lawsuit,

    and removed the Underlying Lawsuit to Federal Court in the District of Nevada on August 23,

    2010.

    16. On September 9, 2010, BELLATOR filed a motion to dismiss the Underlying

    Lawsuit on jurisdictional grounds.

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    17. On January 24, 2011, the Court in the Underlying Lawsuit issued an Order stating

    that the Underlying Lawsuit arises out of Zuffas allegations that Bellator procured and utilized

    Zuffas confidential and proprietary information, and denied BELLATORs motion to dismiss.

    18. On or about January 25, 2011, almost six months after the Underlying Lawsuit

    was filed and after BELLATORs motion to dismiss was denied, BELLATOR first provided

    notice of the Underlying Lawsuit to WESTCHESTER.

    19. WESTCHESTER reserved its rights regarding insurance coverage while it

    evaluated insurance coverage under the Policy for the Underlying Lawsuit.

    20. On May 17, 2011, WESTCHESTER issued correspondence to BELLATOR

    advising BELLATOR that no coverage is afforded under the Policy for the Underlying Lawsuit,

    and BELLATOR has advised it disagrees with the coverage denial.

    21. At all times, including before and after BELLATOR provided notice of the

    Underlying Lawsuit to WESTCHESTER, BELLATOR has been represented in the Underlying

    Lawsuit by counsel of its own choosing.

    22. WESTCHESTER reserves its rights without waiver under the Policy with respect

    to any and all coverage defenses applicable to the Underlying Lawsuit, whether raised in this

    action or not.

    COUNT I TRADE SECRET EXCLUSION PRECLUDES COVERAGE

    23. WESTCHESTER incorporates and restates each and every allegation set forth in

    paragraphs 1.-22. of this Complaint as if alleged in this paragraph 23.

    24. BELLATOR seeks coverage under Insuring Clause A3 of the Policy, which

    generally affords coverage to BELLATOR for Loss by reason of a Claim first made against

    BELLATOR during the Policy Period, and reported to WESTCHESTER pursuant to subsection

    Case: 1:11-cv-08831 Document #: 1 Filed: 12/13/11 Page 4 of 8 PageID #:4

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    51082561.1

    E1 of the Policy, for a Wrongful Act taking place prior to the end of the Policy Period. Such

    coverage is also subject to various other terms, conditions and exclusions as set forth in the

    Policy.

    25. The Policy provides under Exclusion 2.b), as applicable to Insuring Clause A3,

    that WESTCHESTER shall not be liable for Loss on account of any Claim:

    b) alleging, based upon, arising out of, attributable to, directly orindirectly resulting from, in consequence of, or in any way involving:

    (i) any actual or alleged infringement, misappropriation, orviolation of copyright, patent, service marks, trademarks, tradesecrets, title or other proprietary or licensing rights or

    intellectual property of any products, technologies or services;

    26. The Complaint in the Underlying Lawsuit seeks relief alleging, based upon,

    arising out of, attributable to, directly or indirectly resulting from, in consequence of, or in any

    way involving: the misappropriation or violation of copyright, trade secrets, intellectual

    property and/or other proprietary or licensing rights.

    27. Therefore, Exclusion 2.b) applies to preclude coverage to BELLATOR for the

    Underlying Lawsuit under the Policy.

    WHEREFORE, WESTCHESTER respectfully requests that this Court enter judgment in

    its favor and against BELLATOR and ZUFFA, declaring that Exclusion 2.b) applies to preclude

    coverage to BELLATOR under the Policy for the Underlying Lawsuit, and therefore

    WESTCHESTER has no duty to defend or indemnify BELLATOR under the Policy for the

    Underlying Lawsuit.

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    61082561.1

    COUNT II BELLATOR FAILED TO PROVIDE TIMELY NOTICE

    OF THE LAWSUIT PURSUANT TO SUBSECTION E1

    28. WESTCHESTER incorporates and restates each and every allegation set forth in

    paragraphs 1.-24. of this Complaint as if alleged in this paragraph 28.

    29. The Policy provides under subsection E1 as follows:

    E. Notification

    1. The Insureds shall, as a condition precedent to their rights to paymentunder this Coverage Section only, give Insurer written notice of anyClaim as soon as practicable after the Companys general counsel, riskmanager, chief executive offer or chief financial officer (or equivalentpositions) first becomes aware of such Claim, but in no event later than

    sixty (60) days after the end of the Policy Period, or respecting any Claimfirst made against the Insureds during the Extended Period, if purchased,sixty (60) days after the end of the Extended Period.

    30. The Underlying Lawsuit was filed on July 28, 2010.

    31. Between July 28, 2010 and January 24, 2011, BELLATOR removed the

    Underlying Lawsuit to federal court, filed and fully briefed a motion to dismiss and received an

    adverse ruling on its motion to dismiss.

    32. BELLATOR first provided notice of the Underlying Lawsuit to WESTCHESTER

    on or about January 25, 2011.

    33. BELLATOR failed to report the Underlying Lawsuit as soon as practicable

    after it first became aware of the Underlying Lawsuit.

    34. Therefore, BELLATOR failed to comply with the condition precedent set forth

    in E1 of the Policy, such that no coverage is afforded to BELLATOR under the Policy for the

    Lawsuit.

    WHEREFORE, WESTCHESTER respectfully requests that this Court enter judgment in

    its favor and against BELLATOR and ZUFFA, declaring that BELLATOR failed to satisfy the

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    71082561.1

    notice condition to coverage under subsection E1 of the Policy with respect to the Underlying

    Lawsuit, and therefore WESTCHESTER has no duty to defend or indemnify BELLATOR under

    the Policy for the Underlying Lawsuit.

    COUNT III COVERAGE PRECLUDED FOR ALL EXPENSES INCURRED IN

    VIOLATION OF SUBSECTION F3

    35. WESTCHESTER incorporates and restates each and every allegation set forth in

    paragraphs 1.-32. of this Complaint as if alleged in this paragraph 35.

    36. The Policy provides under subsection F3 as follows:

    F. SETTLEMENT AND DEFENSE

    * * *

    3. The Insureds agree not to settle or offer to settle any Claim, incur anyCosts, Charges and Expenses or otherwise assume any contractualobligation or admit any liability with respect to any Claim without theprior written consent of the Insurer, such consent not to be unreasonablywithheld. The Insurer shall not be liable for any settlement, Costs,Charges and Expenses, assumed obligation or admission to which it hasnot consented. The Insureds shall promptly send to the Insurer allsettlement demands or offers received by any Insured from theclaimant(s).

    37. The Underlying Lawsuit was filed on July 28, 2010, and BELLATOR undertook

    its own defense of the matter thereafter.

    38. BELLATOR first provided notice of the Underlying Lawsuit to WESTCHESTER

    on or about January 25, 2011.

    39. Any Costs, Charges and Expenses or other fees, costs or expenses of any kind

    incurred by BELLATOR in violation of subsection F3 of the Policy are not subject to coverage

    under the Policy, including specifically all Costs, Charges and Expenses or other fees, costs or

    expenses of any kind incurred by or on behalf of BELLATOR prior to the date it provided notice

    of the Underlying Lawsuit to WESTCHESTER.

    Case: 1:11-cv-08831 Document #: 1 Filed: 12/13/11 Page 7 of 8 PageID #:7

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    81082561.1

    WHEREFORE, WESTCHESTER respectfully requests that this Court enter judgment in

    its favor and against BELLATOR and ZUFFA, declaring that no coverage is afforded to

    BELLATOR for any Costs, Charges and Expenses or any other fees, costs or expenses of any

    kind, prior to the date upon which WESTCHESTER received notice of the Lawsuit, or which

    were otherwise incurred in violation of subsection F3 of the Policy.

    Respectfully Submitted,

    WESTCHESTER FIRE INSURANCE

    COMPANY

    December 13, 2011 By: /s/ Stefan R. DandellesDate Stefan R. Dandelles

    Stefan R. DandellesDavid T. BrownWILSON, ELSER, MOSKOWITZ,

    EDELMAN & DICKER LLP55 W. Monroe Street 38

    thFloor

    Chicago, IL [email protected]@wilsonelser.comPhone: (312) 704-0550Fax: (312) 704-1522Attorneys for Plaintiff

    Case: 1:11-cv-08831 Document #: 1 Filed: 12/13/11 Page 8 of 8 PageID #:8

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    i c w ( a ~ a a n x v rouxA t t o r n e y s f a r Plaint'Z u f f a ,LLC

    D~ST~CT~C)URTCLARKCOUNTY, ]EVADA

    ZUF~'A,LAC, Nevada i r ~ t ~ d L i a b i l i t yramPanY, b a ULTZMATL IGHTiNCrC~YAM'PI()NSHIP,

    i ; : : :vs.PAVTA H4LDIN~S,LLC, C a l i i f a u u a l ~ n z c e dl i a b i l i t y comAanY, baMMA GENTS;B~I.~TOR~p~ZT VORLDWTDE, LC,AOES tfimugh 100, n c l u s i v e ;R0~ o z ~ w r a t i o x i s and Limited L i a b i l i t yCompanies 1 through 1~0, n c l u s i v e ,

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    P l a i n t i f F , t b . ~ o u g h i t s a t t o r n e y s o f ~ e c a r d , hereby complains g a i z z s t Defendants and a t t e g e sI as u l l a w s :

    IDEN'I`IFI~ATIUN OF f iEPARTS

    1 . P l a i n f i i f f , ZUF~rA,LLC " Z u f f i i ~ , i s a Tevada l i m i t e d l i a b i l i t y co mpany w i t h i t sp r i n e i p a ] p l a n e o f u s i x s e s s l o a a ~ e d i n Cl~le County,Nevada

    Page 1 o f 16

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    Case: 1:11-cv-08831 Document #: 1-2 Filed: 12/13/11 Page 2 of 19 PageID #:56

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    ~ 2. Members of Z~.'s s e n i o r ~znaer~t i n c l a d e Mr. r , o r ~ n z o F e r t i t t a , i t s .2 Chairman, nd Mr. Dana White, t P r e s i d e n t ,3~ 3. Defend~t PAVIA HQLDINGS,LLC s a Califvmia l ~ i t e t i l i a b i l i t y company5 t ax does b u s i n e s s as MMA GENTS(MMA gents". Ken Pavia i s x h e s e ~ i F -d e s c n ` b e d6 "founder" and `managing p a r t n e r " ofMMA ges, h i c } a r e g u l a r l y does b u s i n e s s i n Nevada.~ MMA. genu as l s o t a r g e t e d i t s a c t i o n s a g a i n s t Zuffg in Nevada.8 4. Defendant BELLA.TQI2 SPORTWORLDWIDE, T,C " B e l i a t o r ' ~ i s a Delaware9 ] i m i t c d l i a b i l i t y company w i t h a x i n c i p s ] p l a c e of b u s i n e s s i n Chicago, I I l i n a i s . Zu~'a i s1~

    i z u f o r ~ m e d ma d b e ~ Z e v e s and t ~ a r e u p o z a l l e g e s t i ~ a t B e I [ s z o r i s q u a l i f i e d t o do b u s i n e s s in Nevada1112 and, n any a v e ~ E , has a r g e t e d i t s a c t i o n s ag~stz~n xe v a d ~~3 5. The t r a e nHmes and c a p a c i t i e s , w f i e t h e r i n d z v z d t a a . ~ , c o r p o r a t e , p a r t n e r s h i p ,

    r1 ~ .~ a s s o c i a t e a r u t h c r v v i s e of e f e n d a n t s ~aed e r o i n asDOES thro~h I04, n c l u s i v e , and ~tOE1 CURPORATl~NS nd L L + . ~ T E D L7ABII.TTY COMPANIES rhmugh 100, n c t u s i v e , a n d e a r ,16 of hem a r e u~awn o Zuf~a t h i s t i m e , and Zr$a h e r e f o r e s u s s s a i d D e f e a d a u t s a n d . c a c t i of17 them by s u c k s f i c t i t i o u s ~ a a m e . Z u$a w i t I a d v i s e i b 1 . s C o u r t xu d stek l e a v e t o amcna t h i s1B19 Complaint tv~en th e u a m ~ s aid capaci~es of ach such Defendant a ~ v e been a s c e r t a i n e d .2 b. Zuffa a l l e g e s t h a t each Defrndaat h e r e i n d e s i g n ~ s t e d as ]~}E, ROE21 CORPORATION r LINflTED L T . P , B I L I T Y COMPANY s r e s p o n s i b l e i n some manner o r t i ef~e v e r t s and h a p p e n i n g s h e r e i n r e f e r r e d t o a s h e r e i n a f t e r a l l e g e d and i n c l u d e s i n d i v i d u a l s a n d / o r23 ~ i a E i e s h a t a r e p a r t i e s t o v a r i o u s c o x i t r a c t s w i t hZia nd r e bound by ~ f i d e n t i a l i t y p r o v i s i o n s24 c o n t a i n e d w i # h i n s a i d c o n t r a c t s .2Sz 7 _ Z u # ~ a i s informed and b e l i e v e s and thereupon a l l e g e s t h a t DOES t h r o u g h 1 D 0 ,

    r2 i n c l u s i v e , ROE CdRPflR.4TIaNS and L I l + ~ I I T E D LIABILITY COM~'~1N~5 1 t h r o u g h IOQ,~ i n c l u s i v e , or some of hem a r e e i t h e r r e s i d e n t of h e S t a t e of evada a n d l o r were o r a ~ + e d o i n gCAMFB~LsA lI Ll_lo,AJLS~ , ' ~ ~ ~~ Page2 f 16~~~

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    8. Zuffa i s informed a ~ t l b e l i e v e s an d thereupon a l l e g e s t h a t a t a l l mazes m a t e r i a lherew, efendants were aad are the a g e n t s ,sus,l t e r egos or e x r ~ p l o y e e s of h e a t ~ e r namedA e f e n d a n ~ . s , t h a t e a c h of t]~m c o n s p i r e d w i t h . t h e ~A~n~~ D e f e n d a n t s , an d i n ding t h ew x o u ~ i ~ l c o n d u c t h e r e i n a l l e g e d , t h a t e a c h of hem a r ~ r e a c t i n g w i t b i u ~ t h e c o u r s e aci d s c o p e ofs a i d agency a n d l o r employment o r c o ~ a s p i r a c y , w i t h L h e l~wledge and c o n s e n t of a c h o t h e rD e f e n d a n t s and l ] of hem i n x l y .

    GENERATEBACKGRQUND

    Zuffa c i d the Ultimafe ighting Ch ~ m p i o n s h i p ~9. Zuff~ does business as the Uktimate fighting Champions}~ip~(UF'C~"} c a n c l , a

    r e g i s t e r e d tradera~c.' Znffa s a p~vate cx~upany that s the Iea~ug ~omote r of Axed artialArcs "MlVt,4"~ o n t e s t s or x ~ n i b i t i o n s i n the world.

    X 4. NiMA o n t e s t s i n ~ o l v e bouts between t h l e t e s s k i l l e d in the r a r i o u s d i s c i p l i n e s off ~ i 2 r a a r t z s l e r r s i ~ c I u d i n g k a r a t e , j i u i t s u , b n x i n . ~ , k i r k h o x i r l g , g r a P p 3 ~ z g , w r e s t i n g an d o t h e r

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    Z . t h e 7 1 1 i m a t e F i g h t i n g Champtousbip~ bzand was i r s t o r g a n i z e d an d g a r a t e d b ySemaphore E n t e r t s i n m e n t Croup " S E C S ' } . Th e i r s t UFC~ vent was h e l d i n 1993. U F C c ' ~b o u t s t a k e p~:c n a xademarked i g h t- s i d e d cage knowia as he OctagonT~.

    ' Z~'fa~ i s l i k e w i s e a e g i s 6 e r e d t c a d e ~ c t a z k C r i w e a t h e frequency with which Z u ~ a i smemtaoned t ~ a z f l u g ~ v ~ s t t ] ~ x s C a x X t p l . e u s ~ t , t h e company has not i n s e r t e d the r e g i s t e r e d t r a d e m a r ks y b n b o Z each ~mc t s n ~ u t a e a p p e a r s . N o n e t h el e s s ,fhe mark e g i s t r a t i o n ~rFher demonstra# e st h e l e n g t h s t o which u f ~ t a gmfects t s i n t e l l e c f t ~ l p r o p e r t y .

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    _ ,_ r. ~ ~ ~ l ~ 1

    Z 12. Concern s nd c o m p [ s i n t s abou# t h e unreg~ated n a t u r e o f h$ s p o r t e v e n t n a 3 J . y l e d2t o MMA v e n t s being bann ed i n ma n y t a t e s a nd shu nned by most e l e v i s i o n a i x d c a b l e t e l e v i s i o n3p r o v i d e r s by th e a z e 1 9 9 Q ' s .4

    5 Znffa's pu xchase a f th eU~C~6 ] . 3 . Z n e a r 3 y 2001, uffa p u r c h a s e d t h e UFG~rand a nd s e t about e s t r ~ i c t u r i n g MMA~ i n # o a bd~y r g a n i z e d amd c o n t r o l l e d cambai p o r t _$ 1 4 . T t ~ e i JFC ~ o r g a n i x a t ~ v n i u t z o d u c e d a n d / o r embraced a ~iety of n e wr e g u l a t i o n s9 to t h e s p o r t mc ludmg t h e i m p l c m e n t a ~ t i t r n n o f s t a a d a r d roundsoff i v e m i n u t e s e s c h , z e f e s e eZO

    s t o p p a g e s , r e i g h t c l a s s e s , a nd a , r u i t a E i o n s a n e r m i s s i b C e s t n ~ n g r e a s .1112 1 5 . Due n a r g e B a r t t o t h e a c t i v e i t r v a l v e r n e ~ t and o f f o r t s o f uffa and t q p r i n c i p a l s ,~3 among o t h e r s , M 1 1 ~ f A e v e c i t s came t o b e s a n c t i o n e d 6yf h e w o r l d ' s mast p r e s l i ~ o u s s p o r t s14 ~g-u l a t o r y bodies n c l u d i n g th e Nevada andNew e r s e y S t a t e A t h l e t i c C a T n r r r i c G i o n s .Y5 Rise inpopularity o f ~ . e XTFC~ n d ~V1MA16 16. S i n c e the timeZuffa p r u a h a s e d the UFC~ rand a nd implemented changes o the17

    s p o r t , the p o p u l a r i t y of h e UFC~ r a n d . n p a r t i c u l a r , andMMA s a hole, t a v e s o a r e d .18~9 1 7. At i p s time Zuffa ~ u ~ c ~ ~ . a s e d theUFC~ rand, t s MMA v e n t s were drawing l e s s2 t h e m s e v e r a l thousand people p e r e ~ v e n ~21 18. P r e s e n t l y , UF'C~ v e n t s r e g n l a z l y s e l f- o u t a z e n ~ s a c r o s s t h i s c o u n t r y a nd i n ma n q2 g e t s o f heworld, e g i . ~ l a r l y d r a w i I I g a s many s 20,000- p l u s fpso i v e e v e n t s .2 19. ~ n a d d i t i o n , iTFC~ e v e n t s a r e new e g u l a r l y s hown o n pa y-p e r-view andc a b l e24

    t e l e v i s i o n w i t h i n theUni ted S t a t e s and a z o t n n c i t b ~ e world, a nd a r c a l s o s o l d as D~T's t h r o u g h252 ma jor e t a i l d i s t r i b u W t s .z 2 Q. ~ ' h e p o p u l a r i t y of h e UFC~ rand a n c ~MMA a ve zeached n e w h e i g h t s as a e s u l t2 o f i } Z u $ ' a ' s r e a l i t y t e 3 . e v i s i o n gzogra ~,Th e Uitimaie Fi g h t er, wh i c h hi s a i r e d e l e v e n complete

    CAMPSF~LSII._L-IAMB^ ~ T ~ " ' a ' ~ " Fage4f1 6~~.~ .

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    ~ s e a s b t ~ c an Spike TV, a b l c t c i c v i s i o n c h a r z u e l a v a i l a b l e t o o v e r 9D i i l i a n homes n t h e U n i t e d2

    S t a x e s , and z i } ZuPfas e c e n t l y r e X e a s e d v i d e o game,UFC 009 x ~ d i s p u t e d T M , whi ch h a s s o l d3more h a a 3 . S m i l J l o n c o p i e s s i n e s L g r e l e a s e i n May 009.4

    5 Canfide~t ~at andrv ptieta~y ~uarmation6 21. Vdhm Zuffa pur chased t h e a s s e t s from SP,G, ~ v o i m p o r t a n t component so f t h e' 1 a c q u i r e d a s s e s s werE t h e i n z e l l ~ t u a l p r o p e r t y andc o n f i d e n t i a l ~dr o p r i e t a z y i ~ n a r m a t i o n T h a t8 had been developedby SEG.9 22. F u r t h e r m o r o , overt h e ] ~ s t n i n e- p l u s y e a r s t h a t Z u f f i . has owne d and o p e r a t e d t h ei s

    UFC~ r a n d , t h e c o r n ~ a n y has d e v e l o p e d a d d i t i a ~ a a l i u t e l l e c t u . a l p r o p e r t y a 9 w e l l a s a d d i t i o n a lI112 c o n f i d e n t i a l and p m p r i e # a r y n f o r m a t i o n .~~ 23 . Z ~ f ' f a p o s s e s s e s and o n t i n u e s t o d e v e l o p c o n f i d a n ~ a l and r o p r i e t a r y b u s i n e s s xnd~4 t e c h n i c a l i n f o r m a t i o n r e l e v a n t t o i t s o p e r a t i o n s i n c h t d i n g , b u t nat l i m i t e d t o , i n d e p e n d e n t~ - ~ c o n t r a c t o r and i g h t e r l a t h l e t c i n f a r m a f i i o q v e n u e c o n t a c t and r i c i n g l i s t s , vendor i s t s , ~asegic26 p l a n s , P~~B z a j e c t s and pmgosals, p r o d u c t i o n p r o c e s s e s and p r a c t i c e s , d e s i g n s , d o t s and17

    r e s u l t s of r e s e a r c h , d e n n o g t a p h i c i n f o r m a t i o n , c o n t r a c t and agreement forms,m a r k e t i n g endzsZ9 s e l l i n g s ~ a t e g i e s and t e c h n i q u e s , long rangeplan,ar k ew~g s t u d i e s , f i n a n c i a l andp r i c i n gZ i n f o r m a t i o n , compensation d a t a , r a d e s e c r c t s and h e Jae somcti~es e f e r r e d to e r e i n a s " 7 a i f f a2 C o n f i d e n t i a l I n f o r n ~ a t i o n and Trade e c r e t s".2 24. Zuffa e x p e nded a~cant ime, f f o r t , e x p e c ~ s e ando t h e r a s s e t s t o p u r c h a s e t ~ z e~3 i n t e l i e c t u a i p r o p e a t y and r a d e s s e c r e t s fro m SEG s w e l l as o c o n t i n u e t o develop and r o t e c t t l ~ c24 Zt~fa o r ~ f i d e n r i a l I n f o x z a a t i o n and rade e c r e t s .25

    25. T t z e Zuffa C o n f i d e n t i a l I n f o r m a t i o n and T r x c i e S e c r e t s c o n s t i t ~ i t e z ~ t r e m e l y262 v a l u a b l e b u s i . o ~ e s s a s s e t s developed b y uf fa over h e y e a r s .26can~r~s1Li.lAMS-^ ~ - h" ~ " ' Pag e5 fb~~~~a,~,~a.~~,~-~

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    - ~~ } y.:

    ~ 26. Zuffa has t a k e n an and a 1 I r e a s o n a b l e s t e p s t o m a i v i a i n t h e s e c r e c y of h e 7 . , n ~ a2

    C o u f r r i e n t i a l I n f o r m a t i o n and Trade e c r e t s .34 Kanavia a ndMMA gents5 27. Acxordingt o v a r i o u s w e b s i t E S milerh i s ccm~n~ , C e n Pa via--whn a l s o r e f e r s t o~ h i m s e l f as "ThePau"is or ts a g c n t i ~ a t heads t l z e i a z g e s t and m ost u c c e s s f i i l N1MA p o r t s7 m anagem ent c om pa nyz n t h e i n d u s t r y . " Seewww.mrnaa~ents.c~m. Pavia a l s o b o a s t s t h a t he8 "make[s~ dreams come r u e . " See w v v v v . m ~ y s p a c e . ~ o m / k e i m a v i a9 28. MMA gent s,a c c o r d i n g t o t h e s a m ew e b s i t e s , i s " a r n i n d u s t r y l e a d e r i n mixed10

    m a r t i a l a r t s s p o r t s tnana gemont"snd p r o v i d e s " i t s c l i e n t s with l u c r a t i v e fitti ng o p p o r t u n i t i e s ,111 . 2 ~onsor ships, a r p ~ e a r a n c e s , l e g a l . a s s a s t a n , c e , c o r F r r , ; ~ c ~ o n complia nce, mediarel~ns, g h t e r

    13 b~ndiag,a r e e x gu idance, andm u c h more."~~ 29. MMAgents c l a i m s i t hss a r o s t e r of over 50 or ld c l a s s m ix ed m a r t i a l a r t s~5 l i g h t e r s , f n r t y ofwhich s i c j a r e c u r r e n t o r farmer Zuffa i g h t e r s n16 B e l l a t o rI7 3U. As d i r e c t r e s u l t of h e r i s e i x p o p u l a r i t y of th e UFC~ r~ci,n u r ~ e r a u s o t h e r1819 o r g a n i z z ~ t t o n s I~ ve t a r t e d prom ot in g h e i r ownMMAv e n t s and o n t e s i s .Z0 3. S e v e r a l o r g a n i z a t i o n s , how ever, have sou gh t o compe te mfaidya g a i n s t Z u $a and21. t o c a p i t a l i z e im pzapexly on th e im m ens e p o p u l a r i t y ~ f Z~fa's UFC~randby pP~P~~S22 Z u f f a ' s i ~ x t e l l e r i u s l Pr~P~Y, o n f i d e n f i i a l i z ~ f o r n i a t i o n , andt r a d e s e r a ~ t s . B e l l a t o r i s ana s u c h23p~ ~flni~ asiB Tk .24 32. Zuffa i s inf ormedandb e l i e v e s andthereupon a l l e g e s t h a t B e l l a t o r i s a N I l v i A25Z p r o m n C i o n a f c om pa ny e a d q ~ a t t e r e d i u Chicago h a t r e o e Q t l ~ begsromotingMMAv e n t s u o . y r

    r2 a b o u t 2 4 f l 9 and c o n t i n u e s t o d o so o d a y .28

    CAMPB~Ls nnLL l a Ms" ' @ ' ' " " " " Pageb of 16~~~~~

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    ' ~ ~.--/. ', f

    ~ 33. Accordin t o t h e com an 's websi B'om Rc b n e ' p y ~1 y i s B e E l a t o r s founderaad2

    C k i e f E x e c u i i v e O f f i c e r . See www.B ellataz.com. '3T l i e Present Dispute4

    5 34. Zuffa i s informed and b e , I i o v e s and thereupon a t i c g e s t h g t o n 3 u l y 4, 2010, Bja m6 Rebney s e i r t an e-m ai l from h i s a d d r e s s a t b i o r ~ C a , b e I I a t o r . c o m t o KmPavia a #~ kenpavi r i a a a g e n t s . c o m , w i t h a o u r t e s y c o p r y t o Tom. l a n ~ e h . e r a t ~a~be u a t or. com . t h a t g s t a t e d ss o l l o w s :9 d e n ,i0

    T i n a and Ilaw h a t you've been g r e a t about e n d i n g us "Al l " f h e s e t p i n a l dots~1 ~mh e USG, a h a t we an e-do t h em and implemen i h e m o r B e l l a t o r .~2 Can t a u p l e a s c r e - s e n d e m a r ~ s w i t h those a t t a c h m e n t s . L r b e r a l l y L i s t t h em 1 ~3 TBD.14 P l e a s e l i s t each in Germs of wh at t i s f o r ~d aw he LTFC uses t h ~m l im pl e m e ~ s15 t h em.~& P l e a s e a l s o mske ~ a ~ e t h e y a r e a t t a c h e d an d o r r e s p o n d i n g l y l i s t e d .1? T h e n T ' u x gaiug t o ha v e o a x team ~ v l o n d a y r e- t y p e t h e m an d wei i E s u f f ' i c x e n t ~ y

    a x t e r t k e a z such 8 a i they w i l t a p p e a r b o be o u r s a z ~ . d not h e i r s .1$19 if you can get h i s over o u s a t e today, h a t wo u ld b e z e a t _2 ~~~~>

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    A n i e and c o ~ x e c t c o py of h e f o r e g o z ~ g e r m a i l s a t t a c h e d h e r r e t a as ~ u ` b i t l.~2 -2 35. Zuffa z s i ~ f o r x n e d and b e l i e v e s an d thereupon a l l e g e s t h a t Pavia responded t o t h e2 f a r e g c r i n g e- m a i l o n . ~ e sa m e day, t a t i n g ; "St~l j s i c ] v e g a n . Mey a k e 24 o u r s t c > a~r~uuas2 s o m e f orm s g o t o t h e guys inmy f f i c e . " See A t t a c } ~ e d E x h i b i t 7

    Y z 36. T h o u g h Zuffa c~anot bes u r e a t h i s p o i n t w h a t h e ~ a i v e r s e o f : 4 1 T ' t s "seminal"27 d o c u m e n t sa r e t h a t ha v e been p r o c ~ i d e d b yP o r t i a a n d l o r MMA. ge n t s t o B e l l a t a z , Zia s28

    GRMB LL6IL L.IAf v 1 3-' ' ~ ' ~ ~ . . , Page 7 f 16~~~~~

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    z n f o r m e d and b e l i e v e s and ( h e r e u p o n a l l e g e s t h a t such danuments i n c l u d e p r o ~ a a t i . o n a la g r e e m e n t s , hunt g r e e m e n t s , p o n s o x s h i p f o r m s ; e ~ E e n s i ~ o n e t f e i s , n j u r y forms, nd h e l i k e ,

    37. As a s e t f -p r o f e s s e d a g e n t f o r 4D c u r r e n t aid former Zu~a f i g h t e r s , P a v i a endMMA gcnts would have a m a ss o v a r i o u s a g r e e m e r n s enured n # c ~ between t s c ~ l x e a a t s and u f f a . _S uch a c c e s s does n a t , however, n t i t l e Pavi$ aad MMA gents d d i s h i } s u t e s a i d a g t e e m e n ; s t o.thud p a r t i e s . Ta l ~ e c o n t r a r y , a l l of i ~ e s e a g r e e m e n t s c o n i a i n v e r y e x p l i c i t c o n f i d e n t i a l i t yp r o v s s i o n s t h s t Dave bean vigomtuly n f o r c e d b y u f f a .

    38. Zuffa x s i n f o r m e d amd b e l i e v e s and h e r e u p o n a~eges h a t MM~~ g e n # s , ] ~ r o u g hP a v i a , and B~axor have c o n s p i r e d t o m i s a p p z o p r i a t e Z u f f a ' s c o n f i d e n t i a l i n f o r m a t i o n a n d t r a d es e c r e t s i n a n e f f o r t t o u n f a i r l y compcGe g a i n s Z ~ f f a i n the MIvIA ma~etplace.

    FII~ST CAUSEOF CTION( ~ a o l a t i o ~ x of n u f o z ~ m T r a d e e c r e t s A c t NI2~ G W Z A . 4 l . U , e t e q . ) l l D e ~ ' e n d a ~ u t s )

    39. P l a i n t i f f incorpora#es the a l f e g a i a a n s iu t t ~ e preceding a z F d ensai ng paragraphs ast h o u g h f u l l y s c t f o r t h bcrein.

    4U. Z ~ f f s . s tic o w n e r of e a # a i x ~ t r ~ e c ~ e s e c r e t s zucluding, ~ rt n aL m z i b e ~ t o , many f h edocws~enis described h e r ~ c l n as well as the pEOC~s, a z m _ u l a s , proceci~es, r a e . # h a ~ s an d l i k einformation contained i n s a i d . docaaments "Trade e c r ~ L S ) .

    41. Zia erives de pe nde n t e c o r t 4 m z ~ c val ue f r o m i t s Trad e Secrets n o # beingg e n e r a l l y known o , a n d no# bri ng r e a d i l y a s c e r t a i n e d by r o p e r m e a n s by he public ar a ny o t h e rperson who a n obtain o m r r ~ . e r c i a l o r e c o n o m i c value f r o m the d i s c l o s u r e of he Trad e S o e z e t s .

    42. Z u f ~ f a has taken a n y a n d a l l reasonable steps to m a i z Y t a ' t u secrecy o f i t s T r a d eI S e c r e t s .

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    ~ 43. AE l l times e l e v a c t t h . ~ r e t o , D e ~ n d a n t s k n e w o r s h o u l d have Known h a t t h e T r a d e2

    S e c r e t s were owtzed by Z ~ i f f a and no one e l s e a a d, f u r t h e r , t h a t 7 _ , u f f a . d e r i v e d m d e p e n d~ t34 e c a n r n n i c v a l u e from the Trade e c r e t s .S 44. P l a i n t i f f i s informed a nd b ~ l i e v c s a nd thereupon a l l e g e s t h a t D e f t : a d a ~ a t s6 m i s a p p r o p r i a t e d by improper m e a n s a nd ~r t i e i x own urpose t h e Trade S e c r e t s w i t h o u t t i e7 a p p r o v a l of r conseu t~ h eth ea r i t t ~ a , z a l oz s n p l i e c ~--of u f f a .8 45. I ' l a i n t ~ f f ' i s informed a nd 3 3 e i i e v e s a nd thereupon s i . I e g e s that t a ] I t i . ~ m e s r e l e v a n t9 h e r e t p , Def~danL~mew r h a d r e a s o n t4 aw 1 ~ a s . t h e Trade S a c r e t s belonged t o 2uffa and t h a i

    ] ,0they ~ r e r e a ~ c q u i r i x s g Z u f f a ' s Tr a d e e c r e t s by improper a e a a a s .

    ~~x2 4b. P l a a u t i ~ f f i s i ~ , f Q x m e d sa d b e l i e v e s ~ x a d t ~ z e r e u p o n a l l e g e s t h a t Defendants n t e n d e d1 . 3 t o i n j u r e Zuffa o ~ h a d reason t o k~.ow g h a t heir a c t i o n s R r o u l d inj~e 2 a ~ f f a as t h e ownex l f t h eZ4 Trade e c r e t s .~-' 47. B a s t e a n t } ~ e f o r e g o i n g a nd p t i u s u a n t t o NRS 0flAg40, Z u f f a . i s e n l i t i e d t oJ ` 6 i n j u n c t i v e r e l i e f e n j o i n s n g a nd r e s t r a i n s n $ D e f ~ n c t s n t s from f u r t h e r u se or d i s s e m i n a t i o n of h e17 gr a de S e c F e t s ,1819 ~ ' 8 . Bascd on t h o f o r e g o i n g a n a l p u r s u a n t t o NRS 0 0 A . ~ O S O , Zuffa i s e n t i t l e d t oZ c i a m a g ~ e s f o r 1 J e f e u c ~ n L s ' m i s a p p m p r z a t i o i t ofTrade S a c r e t s i ach~ng, but not i x n i t e d t o , any a n d21 a i l i o s s ~ s a id m j u s t e~iahme~nt cause d b~ Defeadams' i s a p p r o p r i a t i t a n .2 4 9 . p l a i n t i f f i s formed e a d b e l i e v e s a nd theieupan a l l e g e s t h a t De#emdants' a c t i o n s~3 were w i [ L f u l , v r a ~ x c v n , m a i i c i n u s , o p p r e s s i v e , a nd i n r e c e s s d i s r e g a r d of t ~ ' a ' s r i g ~ ~ s t h e r e b y24 e n t i d z n g Zvffa t o e ~ r e m p l a r y d a m a g e s u r s u a n t o NRS 00A.050 a v d a t t o r n e y s ' f e e s as e r m i t t e d .25~~ byNRS 00A.060.

    Y2 50. As a e g a l and proximate c s u s c of Defendants' misapProp~atinn, Z t t f f a has~$ s u s i ~ n e c i d a m a g e s n e x c e s s of X0,000.

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    51. P l a i n t i f f i n o a Y p o r a r e s t h e a ] ] e g a t a o n s i n t h e p r e c e d i n g ande n s u i s i g P a z a g x a P b s a sthough i i l l y s e t o r t h h e r e i n .

    52. B e g i r m i u n g a t a a t e u nk5 wwn, e a t i n o x a b o t r t e a r l y J u l y 2010, e f e n d a n t s MIvfAA . ~ e n i s andB e l l a t o z combined, o n s p i r e d , c o n f e d e r a t e d and a g r e e d w i t h each o t h e r a z ~ d w i t h Daeand Roe D e f e n d a n t s andthena g e n t s t o a c c a n n p 3 i s h an u c ~ l a w f u l o b j e c t i v e f a r t h e p u r p o s e o fharming P l a i n t i $ ' b y , a m o n g t 3 ~ e r t h i n g s , i ) P u r l o i n ; c o p i e s o f u i ~ a ' s " s e m i n a l " o p e r a t i o n a lc l . o c ~ m e r n s and c o n f i d e n t i a l i n f o r m A t i o n , and i z ~ s l i ~ p , ~ i t ~ y a l t e r i n g s a i d d~cumenisandi n f o r m a t i o ni n . o z d e r t o p a s s t o f f as e f e n d a n t s ' ownl l f o r t h e p w r p o s e o f~omp~rtg u n f a i r l y a g a i n s t Z u f f a .

    5 3 . D e f e n d a n t s ' condu ct wa s w i l l f u l , i n t e n t i o n a l o r a l w i t h o 2 z # I e g a i j u s t i f i c a t i o n o re x c u s e . As e g a l a nd g mxima ie a u s e of e f e ~ d a s r t s ' o o n d u e t , Zia as s u s t a i n e d damages me x c e s s o f 1 0 , 0 0 Q .

    5 4 . P l a i n t i f f i s i n f a z m c ~ d and b e l i e v e s ~d h e r e u p o n a l l e g e s t h a t D e f e n d a n t s ' a c t i o n swet i i l f i i l , malicious s n d oppressiv e, t h c x ~ c b y e s t t i t t i a g Zuf f a t o exe mp l a r y damages in a n

    am ount o b e r o v e ~ a at ~ i a J ~ .55. P t a i u t i f f z a s b een required to e t a i n tie E r v i c e s of na t i om e y to p u~sve t s c l a i z a s

    a ~ ~ . 1 7 S t C t D e f e n d a n t s andi s e n t i t l e d t o r e a s o n a b l e a t i a m e y ' s f e e s and c o s t s n a c u r r e d i n t h ep r o s e c u t i o n o f h i s actin

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    S8. Th e s u b j e c t agreements c o n t a i n e x p l i c i t c o n f i d e n t i a l i t y p r o v i s i o n s t h a t a r e s t r i c t l yenforced by uffs.

    59. Zug $s performod l l . o f t s obli~ons nder th e u b j e c t c o u l r a c t s except wh. e r eex c us ed

    60, Zuffa i s i n f o z c n e d and b e l i s v e s and thercugon a l l e g e s t h a t t h e Doe and RoeD e f e n c i a n f s h a v e breaded t h e s u b j e c t agreements by, among t t t . e r t } ~ i n g s , improperly d i s c l o s i n gt l a e n nor llowing h e i r r e p r e s e n t a t i v e s and a g e n t s t o d i s c l o s e them i x n g r o p e r l y to h i r d Q a r b i e sin i o l a t i o n a k e c o n f i d e n t i a l i t y p r o v i s i o n s c o n t a i n e d t h e r e i n .

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    b3. P l ~ u f x i f z z ~ c o r p o z a t e s th e a l l e g a t i o n s in th e pzeceding a n t i e n s ~ . r i n g p a z a g r a p h s as~ thoub~ u l l y s e t o r 4 ~ h e r e i n .

    64. . A l l c o n t r a c # s i n Nevada o n t x t n a s mplied o v e n a n . # o f o o d a i t h and a i r d e a l r _ u g .

    65. P l a i n t i f f ' s informed and b e l i e v e s and t l ~ e r e i p o n a l l e g e s t h a t th e eoaduct o f h eDae nd Roe e f e n ~ d a a t s descnbed h e r e i n includiwg but no t ~ n i t a d t o , th e improper i s c l o s u r e o fZuf~a's s e ~ m u ~ a l " o p ~ x a t c o x ~ a l d o ~ u u z ~ a e n t s and o r t f i d e n t ~ a l information o t h i r d p a t t y c o m p e t i t o r s

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    I ofZ u f f a i s u n f a i t } ~ f u l t o t h e o s e of h et z r p a g r e e m e n t s b e t w c e n ~ u f f a and t h e Doe an d RQe2 D e f e n d a n t s and wa s a t w i t h i n f i e r e a s p n a b l e e x p e c t a t i o n s of7u~ a.34 66. As ed i r e c E a n d proximate r e s u l t of the Dae a n d Roe Defendant s' v v z o a ~ f u l~ conduct, Zuffa h as s u f f e r e d a n d c o n t i n u e s to s u f f e r d a m ages f a r wh i c h t i ~ e r e i s n o a d e q u a t e6 remedy a t la w i n c l u d i n g , bat not i m i t e d t o , o s s of u s i n e s s r e p t ~ a t i o n a i d g o o d w i l l .~ 67. A~ a u r t h e r d i r e c t a n d prox imate r e s u l t of ha Daen d Roe e f e m d a z r t s ' wrongful8 conduct, Zuffa h a s u f f e r e d d am ages n ~cess o f $10,4.9 68. P l a i n t i f f ha s been r e c ~ i r e d to e t a i n r t h e s e r v i c e s of u t t a r x x e y to pursue t s c l a i m s10

    a g a i n s t Defendantsa a d i s e n t i t l e d t o r e a s o n a b l e a t t o z a e y ' s f e e s a n Q c o s t s i n c u r r e d i n t h e11i p r o s e c u t i o n of h i s a c t i o n _

    13 F~I'~CAUSEOE CT~O?r114 (Aid i n g and Ab et~gllnducetnent--~efendantMMA gem is)3 ~9. P l a i n t i f f s n c o r p o r a t e s t h e a l l e g a t i o n s in the p r e c e d r s ~ g a c i d ensuing p a r a g r a p h s as

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    70. P1ain~f f s ~o~ea ~a ~ t ~ c ~ S ~ a~~. I i e g e s t h a x Defenda nt MMA1819 A g e n t s , h r o u g h P a v i a , a i d e d , abet, u b s m n t i a l l y a s s i s t e d , encourngeda n d l o r u a d u c e d t h e Doe2 a n d Roe Defend a~Ls o d i s r u p t t h e i r r e s p e c t i v e c o n t r a ~ t u e ~ a g r e e m e n t s w i t h Z u f f a by, m o n g t h e r21 t h i n g s , a c i l i t a t i n g t h e d i s c l o s u r e of a i d a g r e e m e n t s t o thud a r t y c o m p e t i t o r s of u f f a d e s p i t e t h e2 e x i s t e n c e of a t i d an d i n d i ~ m g c o n f i d e n t i a l i t y gm visions o n t a i n e d # h e r e i n .~3 71. Dc fendamt was m r a r e of t s r o l e in promotv~.g the b rea c h b y the Doe a n d Roe24 Defenda n ts t the t i m e t provi ded t s a s s i s t a n c e a n d en c ouragement_252 72. Defen d a n t 's c ond uc t vas a n 1 1 f u 1 , i n f e n i i U n ~ I a n d w i d l x o u t I e g a l j u s t i f i c a ~ o n 4F

    r~7 e x c u s e . As a u r t h e r d i r e c t a ~ d pra~dmate r e s u l t o ~ F Defendant'sw r a n ~ ul conduct, Z~fa a s~ s u f f e r e d d a m a g es i n excess of$ , 0 0 0 .c a~npRFl

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    73. P l a i n t i f f i s i n f o r m e d andb e l i e v e s m ~ + d t h e r e u p o n a J , l c g e s t h a t D c f e n c t a n t ' s a c t i o n swere w i l l f u l , r n a I i c i o u s and o p p r e s s i v e , t h e a e b y e n t i f 3 i n g Z u f f a t o excmp iary damagesi n anam ount Wa p r o v e n o f z i a l .

    74. P l a i n t i f f h a s been e q u i r e d t o r e t a i n t h e s e r v i c e s of an a t t o r n e y t o p u r s u e t s c l a i m sa g a i n s t D e f e n d a n # s a n d i s e ~ . t i t l e d t o r e a s o n a b l e a t E o r n e y ' s f o e s and c o s t s i n c u r r e d i n t h epmse cutian a h i s a c t i o n ,

    FIFTHCAUSEOFACTION(ConversionAll efendant s)

    75. Y l a i n ~ , i f f l n c o c p o r a d e s t h e a ! l e g a r i o n s~h e p r e c e c ~ ~ n g ande u s u i . n g P a c a g z a P h s a st h o u g h f u l l y s e t f o r t h h e r e i n .

    7 f i . Zuffa t t z a i ~ n C a i n s property r i g h t s in both th e physi cal copies of t s "scmi na3 "a p e a - ~ r i o n a l d ocume ntsan d c o n f i d e t r t i a l information as weU as c e x t a i ~ n i n t a n ~ l a l e r i g h t s t 1 1 a t a r ez a . e r g e d t h e r e i n .

    7 7 . ' Z ' Y i e i mproper d i s c l a s ~ r e ofZuffa's o p e r a t i o n a l d ocuments an d oanfi~tiaEi n f o ~ ~ . a t i o n by evia,MAIL gents, a n a l th e Dcend Raee f e z z d a n f s c o n s t i t u t e s ad i s t i n c t a c t of

    dam3xxionwm g ~ u t i y e a c e r t e d ove r ms'sP~roP~Y7 8. T f z e i m psb ger use by B e l l a t o r of t i f f a ' s o p e r a t i o n a l docun~euts and c o r n f i d e n t ~ a li n f o n m a ~ o z ~ . i n az der to conduct i t a com p eting business apera~ons c o n s t i t u t e s a i s t i n c t a c t ofd om i nion wrongfully exerte dove r Zuffa'sp ersonal p m p e r Ey .

    7 9. Defendants' conducti s i n c n n s i s t e n i wi th Z u$a's i t l e and r i g h t s i n i t s o p e r a t i o n a ldacumencts and c o n f i d e n t i a l inf ormati on and i s f u r t h e r i n derogation, exclusion, and defiance of

    ~ such i t l e and ~ i g ~ t s .

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    ~ ' 8 0 . D e f e n d a n t s ' c o n d u c t ~ n v a s w i l l f u l , i n t e n t i o n a l and w i t h o u t l e g a l j u s t i f i c a t i o n o r2 e x c u s e . As a d i r e c t and p r a x i m a f i e r e s u l t of e f e n d a n t s ' w z o n g f u l canduc~ Z u f f ' a h a s s u f f e r e d34 damages n e x c e s s of 1 0 , 0 0 Q .5 $ Y . P l a i n t i f f i s i n f o r m e d and b e l i e v e s and t h e r e u p o n a L T e g e s t h a t D e ~ e n d a a t s ' a c t i o n s6 were w i l l f u l , m a ~ i c i o ~ u and o p p r e s s i v e , t h e r e l r y e u t i t l m g Z u f f a t o e x e m p l a r y damages i n a ~~ amount o be r o v e n a t ~ i a i . .8 $ 2 . P l a i n t i f f b a s been r e q u i r e d t v z e t a i n t h e s ~ r v i c ~ s of as d t o m e y t o p v r s i z e i t s c l a i m s9 s ~ a i n s t D e f ~ n c i a n # s an d i s eu~tled t o r e a s o ~ . a b E e a t t o r n e y ' s f e e s a nd c a s t s inctur~ i n t h e10

    p r o s e c u t i o n o f h i s t z c t i o n .1112 SIXTHCAUSEOF CTION~ ,3 ( I n j u n c t i v e Reef)3 . 4 S3. P l a i n es n c ~ r p a x a t e s t h e a ~ e g a t i o f l s i n th e Pr~ccding a e ~ d . ensuing patag~~k~s as15 t h o u g h f u s t y s e t f v r t ~ h e r e i n .16 84. ~u~a as ~ z o p J . e i n , speody ar e c ~ e q u a t e r ~ m e ~ y at Ia w t o p r o t e c t i t f o l l y a g a i n s t17 Defendants' ongoing wrongful a n d n U e n t i o n a l cAnduct1819

    85. ~~a s e n t i t l e d t o a tempaxary, Preaiminary a n dpentn j u a c t i o n r e s ~ r a i x ~ u g2 an d e u j a i n i n g Defendants a nd ~y urcesson o f a s s i g n s , o f f i c e r s , d i r e c t o r s , a g e n t s , sca nts,2 employees, t t o m e ~ - s , l i c e a a s e e s , a $ t l i a t e s a n d a l l parsons in a c t i v e c o n c e r t or p a r t i c i p a t i o n with2 Defendants Exam:23 a . c o n t i n t u n g to m i s a p p r o p r i a t e Z u f f s ~ ' s Confid~rial Information a n d Trade24

    S e c r e L S and/or t s o p s r a ~ i o n x l d o c u n n e n t s ;252 b - conducting a n y b u s i n e s s o r a t i o n s u ~ l i z i n ~ g , in a n y maser hatsoever,

    27 Z u f f a ' s C o n f i d e n t i a l Information a nd Trade S e c z e t s gndlor t s o p e r a t i o n a l d oc u m~ ts;28

    GAMP6Et1_sILI..LAMS , , P , Page 14 o f 16~~~~.~~+~,~:~a

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    ~ c . a i d i n g and a b e t t i n g t h e improper d i s c l o s ~ u ~ e by any o t h e r p a r t y of u ~ ' a ' s2

    C a n f i d e ~ a t i a ] L a f a r m a t i o n and Trade e c r a # s a n d / o r i t s o p e ~ a t i o ~ r a l docume~#s; and34 d . a i d i n g and a b e t t i n g t h eb~f ny can~act between Zuffa and any t h e r, ~ p a r t y or t h e r w i s e i n t e r ~ e r i n ~ w i t h such o n t r a c t s .

    8d. Without t h e e n t r y o f a t e m p o r a r y > P r e l i m i v A r Y a n a l permanent i n j u n c t i o n , Z u f f ~~ w i l l s u f f e r ~ u x e p a r a b l e a s s and injmY, a r whzch h e z e i s am b a d e q u a t e r e m ed y t law.$ PRAYERFUG ELIEF9 ~aRE,l a i n t i f f p i a} ' ~ f o r~tg a ~ x ~ s t D e f e n d ~ n d s , and each o f than, as

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    1~ ~ . For compensat or damages u a ~ c e s s o f Te n 'I~n~sand D o l l a r s {$]Q60QAQ), n an13 amount o be proven a t r i a l ;14 2. For exemplary damages i n e x c e s s o f ' e n . Thousand D o l l a r s ( $ 1 0 , 0 00 . O Q ), i n ~ a n15 ~o~ e proven t r i a l ;1~ 3. For a t e m P ~ ~ Y .F~~~3' nd permanent i n j u n c t i o n r e s t r a i z z ~ n g and e x y a i n i n g1.7 Defendants and anp s u c c e s s o r s ar a s s i g n s , o ~ ' i c e s s , d I I e ~ t o r s , a g e n n s , s e z v a n t s , employees,18~ a t t o r n e y s , l i c e n s e e s , a f f i l i a t e s and a l l p e r s o n s i n o c t a v e c o n c e r t o r p a r t i c i p a t i o n o v i t h D e f e n d a n t s

    20 f i ' 0 D ~2 a . c o n t i n u i v a g t o m i s a p p r o p r i a # e Z u ~a's C o n f x d e n t i a i I n f o r m a t i o n and Trade2 S e c r e t s a n d / o r t s appr a t i o n a l do~~~*++ G ;2 b . c o n d u c t i n g any b u s i n e s s o p e r a t i o n s u t i l i z i n g , in any manner ~ c v h a t s o e v e r ,24 Z u f f a ' S CO~[let1~HI ~1~OIII1fulOII Aa[I L ' B ~ C I . e S~CICL~ II(~IOL Sf SODIIA~~OCUIFTPS1iS~2S

    r 2 c _ a i d i n g ~d b e t t i n g t h e improp~c d i s c l o s u r e b y any o t h e r p a r t y o f u f f a ' s2 C o n f i d e n t i a 3 T n f a r m a t i n n ~d rade e c r e t s a n d / o r t s o p e r a t i o n a l documents; and28carn~a~s+nt1~AM5~~~ Page 1 5 l f i 8r d o 9aum s a m+ s r ~ ,~rt+~.e,~o , m

    n+o~x2a~s~S R f c 7 v e l

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    4 . For r e -3 u d g r u e a a t ai d o s t -j u d g m e z tinter s a k i a w e d bylaw;5. For attom~y e e s aad e s t s of u i t m c u Q r e d . e r e iq s a l l o w e d by law, ~ an r r ~ o ~ u t o

    be c t e n n i n e d ; an d6. For u ch t h e r an d t u t h e r ~ e ] i e f as fh e Court may eem u s t i a d p r o p e r .Dt~~D h i s 28~h day of u l y , 2010.

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    Colby WilliamsSubject: F1N: CONFIDEM'IAi_ iJFC

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    Case: 1:11-cv-08831 Document #: 1-2 Filed: 12/13/11 Page 19 of 19 PageID #:73