Filed Complaint in Texas

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Case 4:12-cv-03209 Document 1

Filed in TXSD on 10/29/12 Page 1 of 8

IN THE UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION

RAMON COLON an individual,

§ § § Plaintiff, § § vs. § § HENDRICKS SPORTS MANAGEMENT, LP § a Texas Corporation § JOHN DAVID SMART § an individual § § Defendants. §

Civil Action No. ___________________

JURY DEMANDED

ORIGINAL COMPLAINT COMES NOW Plaintiff, Ramon Colon, (hereinafter “Colon”), and files this, his Complaint and Demand for Jury Trial against Hendricks Sports Management LP (referred to as “Hendricks”), and John David Smart (“Smart”),( hereinafter referred to as Defendants”) as grounds states as follows: NATURE OF THE ACTION This is an action for (1) Breach of Fiduciary Duty, (2) Negligence, (3) Negligent Misrepresentation, (4) Breach of Contract. JURISDICTION AND VENUE 1. This is an action for damages in excess of One Million Dollars ($1,000,000.00),

exclusive of interest, costs and attorney’s fees.

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2.

Plaintiff, Ramon Colon is a resident and citizen of the Dominican Republic. At

the time of these actions by the Defendants, Colon was over the age of eighteen (18) and is otherwise sui juris. 3. Defendant, Hendricks Sports Management, LP is a Texas Limited Partnership

who is authorized and conducts business in and maintains its principal place of business in Houston, Texas and is otherwise sui juris. Defendant Hendricks Sports Management, LP may be served through its registered agent, Randal A. Hendricks, 400 Randal Way, Suite 106, Spring, Texas 77388. 4. Defendant, John David Smart is a resident of Texas and a citizen of the United

States. At the time of these actions, John David Smart was over the age of eighteen (18) and is otherwise sui juris. Defendant John David Smart may be served at his place of business, Hendricks Sports Management, LP, 400 Randal Way, Suite 106, Spring, Texas 77388. 5. This Court has original and exclusive jurisdiction over Ramon Colon’s claims for

Breach of Fiduciary Duty pursuant to Texas Law. 6. This Court has jurisdiction over Ramon Colon’s state law claims pursuant to 28

U.S.C. §1332 as the amount in controversy in this action exceeds $75,000.00 and there is diversity between Ramon Colon and all Defendants. 7. Hendricks Sports Management, LP is subject to personal jurisdiction and service

of process under Texas law as follows: a. Pursuant to Tex. Stat. § 15.002(1), in which a substantial part of the events

or omissions giving rise to Colon’s claim occurred within the State of Texas.

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b.

Pursuant to Tex. Stat. § 15.002(2), because Hendricks maintained its

principal place of business in the State of Texas, thereby invoking the benefits and protections of its law. 9. John David Smart is subject to personal jurisdiction and service of process under

Florida law as follows: a. Pursuant to Tex. Stat. § 15.002(1), in which a substantial part of the events

or omissions giving rise to Colon’s claim occurred within the State of Texas. b. Pursuant to Tex. Stat. §15.002(2), because Smart maintained his residence

in the State of Texas at the time the cause of action accrued. 10. All conditions precedents to this action have been performed, have occurred, or

have been waived. Preliminary Statement 11. This case arises out of the Defendants’ Breach of Fiduciary Duty. Defendants

failed to use a reasonable standard of care that is accustom as to professional baseball agents/representatives when negotiating a contract in a representative capacity. Facts Giving Rise To The Claims 12. On or about May 10, 2010 Smart and Hendricks acting as Ramon Colon’s

Agent/Representative negotiated a Contract with the KIA Tigers for the 2010 Korean baseball season, in which Colon played from the months of May 2010-September 2010. 13. On or about November 2010, Smart and Hendricks began negotiating Ramon

Colon’s 2011 Contract with the KIA Tigers Baseball Organization.

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14.

On or about November 2010, the KIA Tigers presented Smart and Hendricks with

a qualifying offer of Seventy Five (75%) of Ramon Colons 2010 Contract for the 2011 Korean baseball season. Qualifying Offer is attached as Exhibit “A”. 15. Due to Smart and Hendricks oversight, Colon was never notified of the KIA

Tigers qualifying offer, resulting in the termination of his offer and his rights being retained by the KIA Tigers for Five (5) additional years. Uniform Korean Baseball Contract is attached as Exhibit “B”. 16. On or about January 2011, after Smart and Hendricks forfeited Colon’s qualifying

offer from the KIA Tigers, Colon signed with the Los Angeles Dodgers for Twelve Thousand Five Hundred Dollars ($12,500.00) a month notwithstanding the fact that if he knew of the lucrative offer from the KIA Tigers he would have signed immediately. FIRST CLAIM FOR RELIEF Breach of Fiduciary Duty 17. Plaintiff incorporates each and every allegation alleged in the proceeding

paragraphs as though fully set forth herein. 18. This is an action against Hendricks and Smart for Breach of Fiduciary Duty as

acting agent for Ramon Colon pursuant to Texas Law. 19. The relationship between Hendricks and Smart, as agents, and Colon, as client,

entailed a degree of trust and confidence between the parties. 20. Hendricks and Smart undertook to manage all of Ramon Colon’s baseball As Colon’s agent, Hendricks and Smart claimed to have superior

contract negotiations.

knowledge, skill, and expertise in the field of negotiating and understanding baseball contracts. 21. Hendricks and Smart, in undertaking the negotiating of Colon’s baseball contracts

for the benefit of Colon, had an obligation to act in good faith and in the best interest of Colon.
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22.

Hendricks and Smart advanced their own interest to the detriment of Colon by

mismanaging and failing to disclose Colon’s qualifying offer from the KIA Tigers. 23. Hendricks and Smart breached their fiduciary responsibilities, obligations, and

duties imposed on them by engaging in dishonest, disloyal, and immoral conduct. 24. As a result of the foregoing actions, Colon has been damaged. WHEREFORE, Ramon Colon demands judgment against Hendricks and Smart for actual damages, including an amount which would have been received from the 2011 Kia Tigers baseball contract. SECOND CLAIM FOR RELIEF NEGLIGENCE 25. Plaintiff incorporates each and every allegation alleged in the proceeding

paragraphs as though fully set forth herein. 26. Hendricks and Smart undertook a duty to Colon to provide competent and

professional management services in every aspect of Colon’s baseball career. 27. Colon relied on Hendricks and Smart for their management services, for which

they were retained for, agreed to, and promised to provide. 28. Hendricks and Smart were negligent in performing the management services that

they agreed to provide and breached their duties to Colon by failing to notify and disclose any and all offers made to Colon, in addition to their failure to be adequately skilled in contract negotiations concerning contracts from foreign baseball leagues. 29. performed. Colon has been damaged as a result of the Defendants’ breach due to work

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Case 4:12-cv-03209 Document 1

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WHEREFORE, Ramon Colon demands judgment against Hendricks and Smart for actual damages, including an amount which would have been received from the 2011 Kia Tigers baseball contract. THIRD CLAIM FOR RELIEF Negligent Misrepresentation 30. Plaintiff incorporates each and every allegation alleged in the proceeding

paragraphs as though fully set forth herein. 31. Hendricks and Smart failed to exercise reasonable care and competence by failing

to communicate Colon’s qualifying offer from the KIA Tigers. 32. Hendricks and Smart mismanagement of Colons qualifying offer has resulted in

Colon suffering pecuniary loss by justifiably relying on the representations made by Hendricks and Smart while acting in a representative capacity on Colon’s behalf. 33. Hendricks and Smart had a duty as Colon’s agents to be truthful, and disclose to

him any and all present offers due and owing to Colon. 34. Colon relied on Hendricks and Smarts false misrepresentations which induced

him into signing a baseball contract with the Los Angeles Dodgers, which was insignificant compared to the qualifying offer that was presented to Hendricks and Smart with which they failed to disclose to Colon. WHEREFORE, Ramon Colon demands judgment against Hendricks and Smart for actual damages, including an amount which would have been received from the 2011 Kia Tigers baseball contract.

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FOURTH CLAIM FOR RELIEF Breach of Contract 35. Plaintiff incorporates each and every allegation alleged in the proceeding

paragraphs as though fully set forth herein. 36. This is an action for Breach of Contract of a Hendricks Sports Management LP

Agency Contract. Agency Contract is attached as Exhibit “C”. 37. As previously set herein, Hendricks and Smart failed to use all reasonable efforts,

while negotiating Colon’s Contract with the KIA Tigers. 38. According to the Agency Contract Hendricks Sports Management agrees to use

all reasonable efforts to: 1. Negotiate Players employment contract or contracts as a professional baseball player, including representation in salary arbitration hearings; provided, however, Player shall have the exclusive right to approve and execute the final baseball contract between Player and a professional baseball team. Advise Player on matters affecting, affected by, or concerning his employment contract or contracts between Player and the professional baseball team to whom Player is under contract, including information and assistance with respect to the interpretation of major league rules regarding placement on appropriate lists following injury, suspension or other discipline, pension and insurance benefits relative to the Major League Baseball Players Association Benefit Plan, and arbitration, trade and free agency rules.

2.

39.

More specifically, Defendants breached the above referenced Contract by failing

to advise Colon on the present matter affecting his employment contract with KIA Tigers as stated in his Agency Contract with Hendricks Sports Management LP. 40. damaged.
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As a direct, proximate and foreseeable result of such breach, Plaintiffs have been

Case 4:12-cv-03209 Document 1

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WHEREFORE, Ramon Colon demands judgment against Hendricks and Smart for actual damages, including an amount which would have been received from the 2011 Kia Tigers baseball contract. Jury Demand 41. Pursuant to Federal Rule of Civil Procedure 38, Colon respectfully demands trial

by jury of all issues so triable.

Respectfully submitted,

/s/ Patrick Zummo Patrick Zummo State Bar No. 22293450 3900 Essex Lane, Suite 800 Houston, Texas 77027 (713) 651-0590 (telephone) (713) 651-0597 (facsimile) OF COUNSEL: Adam B. Kenner Florida Bar No. 066216 Wolfe Law Miami 175 SW 7th Street PH2410 Miami, Florida 33130 (305) 384-7370 (telephone) (305) 384-7371 (facsimile)

ATTORNEYS FOR PLAINTIFF RAMON COLON

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