Florida Appellate Court Trims All Star Boxing’s Restitution Recovery

Saul “Canelo” Alvarez (below) has had a storied twenty-year boxing career, starting when he was only fifteen, and winning 68 matches while losing only three. Two ended in draw. So when a trial court awarded All Star Boxing (All Star) $8.5 million in restitution damages for its promotion efforts, Mr. Alvarez demanded a rematch.

All Star promoted Mr. Alvarez’s career during a fifteen month period when he was an up-and-coming fighter. It arranged nine fights, it secured television coverage of his bouts, secured him a visa so that he could fight in the United States, and lobbied the organizations that rank boxers on Mr. Alvarez’s behalf. In 2010, Mr. Alvarez jumped ship and entered into an agreement with Golden Boy Promotions (Golden Boy), which paid him a $1 million signing bonus. All Star sued Mr. Alvarez for breach of contract and unjust enrichment. It sued Golden Boy for tortious interference. The trial court rejected the breach of contract and tortious interference claims but awarded $8.5 million for unjust enrichment.

An earlier panel decision reversed the $8.5 million award, as it was based on testimony relating to All Star’s lost profits that the panel found improper and speculative. On remand, the panel ordered the trial court to reconsider damages based on the existing record. It credited All Star with out-of-pocket expenses amounting to $45,000 and it valued All Star’s promotional efforts at $1 million. Mr. Alvarez once again appealed. Look at the fight in this guy! In Alvarez v. All Star Boxing, Inc., his efforts were rewarded in a unanimous decision.

Under Florida law, the Court began, “unjust enrichment damages must reflect the reasonable value of the plaintiff’s labor and costs expended for the benefit of the defendant or the value of any economic benefit that the plaintiff had conferred upon the defendant.” That value must be “measurable and quantifiable.” As its expert’s testimony had been rejected, All Star attempted to show that Mr. Alvarez’s $1 million signing bonus with Golden Boy reflected the value of its efforts.

The Court cited no less an authority than Oscar de al Hoya (below), who said, that boxers make promoters, not the other way around. The Court credited Mr. Alvarez’s abilities, including his charisma, his 30-0 record, and his trainers for Golden Boy’s willingness to pay the signing bonus.

Mr. Alvarez conceded that All Star had $45,000 in expenses. All Star no doubt contributed more than that to Mr. Alvarez’s success, but the entity did not prove the value of its efforts in court. The $45,000 in expenses was the only recovery the Court could allow.