Lawsuit over heavyweight fight tickets dismissed by all but one plaintiff

A $6.2 million lawsuit over financing of a Memphis heavyweight fight charging fraud has been dismissed by all except one plaintiff.

Dr. William W. Lents of Newbern is continuing his suit against John Ford, Kent Ford and Billy Walker and their firm, Dyer Investment Company, for breach of contract and fraud, Covington attorney Mike Whittaker said Friday.

Lents' current attorney, Kenneth W. Williams of Cookeville, did not return a phone call to the State Gazette Friday.

The lawsuit over the June 9, 2002, heavyweight championship fight between Lennox Lewis and Mike Tyson at the Pyramid in Memphis was filed in February 2004.

Plaintiffs in the lawsuit were Willie German of Fayette County, Lents, Robert Pinner, of Hardemann County, and Darrell Sells, Deana Sells and Darren Sells, all of Dyersburg.

The six plaintiffs guaranteed ticket sales for the boxing match.

Whittaker said all but Lents dismissed their complaints around the first of this year.

"They shook hands and settled the suits amiably," he said. "Everyone went away happy."

Leo Arnold, attorney for Dyer Investment, could not be reached for comment last week.

Sells, reached at his office Friday, agreed that the lawsuit was settled amiably, but declined further comment.

Each of the plaintiffs filed separate nearly identical complaints against the same defendants on March 4, 2003, but the original complaints claimed only breach of contact and not fraud.

The 2003 complaints sought compensatory damages for the 10 percent profit the investors expected to make and punitive damages.

In June 2003 attorneys for the principals, Dyersburg attorney Arnold for the defendants and Dyersburg attorney Robert Millar for the plaintiffs, reached an agreement guaranteeing any judgment against the defendants through a letter signed by the Fords and Walker.

After that Millar and Arnold met to negotiate details of a trial of the case.

But Millar became ill and required surgery for cancer. The illness caused him to retire and on Nov. 13, 2003. Chancellor J. Steven Stafford dismissed the lawsuits for lack of action by the plaintiffs.

The plaintiffs sought out Whittaker to pursue the complaints.

The six expected to receive 10 percent return on their investments in the fight tickets. They signed contracts accepting responsibility for shares of the liability if the fight did not sell at least $15 million worth of tickets and anticipating sharing in the profits if the tickets sold.

Their original complaints alleged that an agent for Dyer Investment Company told them their investments no longer were needed after they obtained irrevocable letters of credit from banks.

The new consolidated complaint stated the plaintiffs were induced by the defendants to prepare for investing in the fight tickets.

"Dyer Investment Company LLC, became involved in raising or putting together of the financing of the Tyson-Lewis fight in Memphis, and to that end induced the Plaintiffs herein to enter into contracts with Dyer Investment Company, LLC, all dated on or about March 21, 2002," the complaint states. "These contracts were called 'Investor Participation Agreements' ('IPA') with Dyer Investment Company, LLC, as 'lead investor' with each plaintiff being a 'Participant.'

"The 'Investor Participation Agreement' was drafted by the defendants and should be construed most strongly against them," it continues. "A series of IPA's were executed between Dyer Investment Company, LLC, and the individual plaintiffs in amounts varying between one million and two million dollars."

The complaint then claims Walker told the plaintiffs to hold on to their letters of credit.

"Plaintiffs secured the financing or commitments from banks to issue each letter of credit, if required, but Billy Walker by and through Charles Kelly Sr., prevented them from performing their obligation by saying in effect that the plaintiffs should have their banks ready to produce letters of credit once Dyer Investments had the final forms prepared," the complaint states. "Plaintiffs either performed fully or were ready to perform fully except as prevented by Billy Walker and Charles Kelly telling them to hold up on letters of credit."

Kelly, a Dyersburg attorney, had put together the deal for guaranteeing the ticket sales, but was not a defendant in the lawsuit.

The complaint states Walker committed intentional breach of contract and fraud.

"The actions of defendant Walker were a deliberate plan to have the plaintiffs committed to making up for losses to cover Dyer's own losses if it needed them, but when ticket sales went up and Dyer saw its exposure diminish, defendants announced they would not honor their contracts with plaintiffs. The actions of the defendants breached the contracts and constituted fraud."

It claims the defendants are liable for treble damages.

"Billy Walker, John Ford and Kent Ford are individually and personally liable for deliberately perpetrating a fraud on plaintiffs...," the complaint states. "Billy Walker, John Ford and Kent Ford are liable for treble damages for inducing the breach of contract."

The complaint alleges that the defendants were involved in a conspiracy.

"All defendants engaged in civil conspiracy to defraud the plaintiffs: The goal of the conspiracy was to not pay plaintiffs money owed under the contract: the overt acts in furtherance of said goal included ...Billy Walker's representations that the letters of credit were not necessary, Billy Walker's directing Charles Kelly to tell Plaintiffs they would not be paid; (and) John Ford's representation to Darrell Sells that Plaintiffs would not be paid," the complaint states.

The lawsuit seeks $800,000 in actual damages, treble damages for inducing breach of contract and punitive damages of up to $3 million for civil conspiracy.

The complaint also asked for attorney's fees and costs and does not ask for a jury trial.

The settlement apparently ends the case, except for the complaint by Lents.