California residents who are fans of MMA may know who flyweight Ray Borg is from his time in the ring. They may also have heard that he is being sued by Wild Bunch Management for breach of contract and fraud. WBM claims that they helped him negotiate a deal to fight five matches for the UFC. However, the management firm claims that the fighter left the organization after just one fight.
The suit claims that Borg was to pay WBM 20 percent of any earnings of $9,999 or less in addition to 10 percent of any bonus earnings over $10,000. Furthermore, the suit claims that Borg violated a no-compete clause in the contract by switching to a nearby gym. However, Borg's attorney claims that WBM is simply upset that the fighter chose to further his career and also decided to do so elsewhere.
The fighter's lawyer also doubts that there was a strong contract between Borg and WBM. WBM filed the lawsuit in February 2018 in New Mexico. It is seeking a variety of damages including actual and incidental and punitive from the alleged breach of contract and fraud. The attorney for WBM said that the breach was material and that it cause irreparable injury to the company.
When a party is alleged to have breached a contract, there could be several ways to resolve the issue. For instance, it may be possible to renegotiate the terms of the deal, which is often the case. However, when the breach is material, sometimes a lawsuit filed by an attorney is the only answer.