Rival Gaming associates sued for almost half a million CDN

Companies allegedly associated with online gambling software firm Rival Gaming are being sued for some Cdn$464 007.21 by T2 Marketing, a Canadian marketing consultancy located in Montreal.

Gordon Levine, a lawyer at the Kugler Kandestin law firm in Montreal has confirmed that he represents T2 Marketing Inc. in a lawsuit against a company identified as 6300511 Canada Inc., and four Canadian citizens who are named in documents filed in Quebec Superior Court action 500-17-046150-085.

"The law firm BCF LLP has appeared on behalf of the Defendants," Levine advised. "In December 2008, a litigation timetable was filed into Court pursuant to which Defendants' counsel may examine a representative of Plaintiff, and Defendants have a delay until March 15, 2009 to file their defense. Given the filing of the timetable, no Court appearances are presently envisaged until the case is set down for Trial."

The litigation timetable filed with the court documents reveals that the dispute dates back to 2006, although the court filing took place in October 2008 and the case is now in process through various stages stretching ahead into 2009. There is no sign of a settlement thus far.

Contacted for comment, Patrick Stacey, CEO of Black Chip, one of the companies named in the T2 litigation, in addition to being personally named in the action, said: "Since I am named, my only on the record comment is that the plaintiff's claims are without merit and I will vigorously defend myself."

The court documents detail a marketing agreement between T2 and the defendants signed in 2006 which, it is claimed, the latter unilaterally ended and thus allegedly breached in August 2006. There followed exchanges of correspondence, claims for agreed retainers, stopped checks and alleged damage to banking reputation.

T2 and Kugler Kandestin specifically identify two Ottawa men and a further two Stittsville, Ontario men as the shareholders of 6300511 Canada Incorporated, claiming: "Defendant 6300511 Canada Inc., ("Gaming Solutions") carries on business in Ottawa ostensibly as a software development company, however, in fact, through Gaming Solutions the defendants under the trade names "Black Chip", "Gaming Solutions", "Unified Support Systems" and under the brand name "Rival Gaming," have developed and operate several online and Internet based casinos."

Later in the document T2 describes a corporate structure document allegedly given to it's principals by the defendants before the agreement was breached; names other employees of Rival and identifies a range of popular Rival-powered online casinos.

The plaintiff therefore argues: "Accordingly, all of the corporations are, in reality, alter egos of the individual defendants in order to disguise the individual defendants' ownership of the casinos and de facto operation and management thereof from the Ottawa Premises."

T2's claim is itemised as:

Cdn$ 57 175.72;

Cdn$50 000 for damage to plaintiff's reputation;

US$ 244 040 in respect of monthly retainers due in terms of the allegedly breached agreement;

Cdn$ 50 000 for moral and punitive damages "as a reslt of defendants' bad faith;"

Legal costs.

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