Managers question judge's Tua ruling

David Tua

The main courtroom bout between David Tua and his former managers is some way off, despite a ruling that the boxer is a free agent.

A High Court decision this week by Justice Hugh Williams ruled that any contract Tua might have had with Martin Pugh and Kevin Barry ended on October 10, 2003, meaning the managers have no right to share Tua's fight purses after that.

Even this ruling may not be such a clear step forward, according to the managers' lawyer, Justin Toebes.

He told the Weekend Herald the judge had made the ruling based on his telling the court his clients were "minded to accept" that the Exclusive Management Agreement ended on that date. But he contends that does not amount to acceptance.

His clients have been ordered to file new pleadings by February 15.

Mr Toebes indicated this would involve claims:
* That notice to terminate the contract was not properly given and that damages of half Tua's earnings since termination date would be sought.
* A request for the court's help in establishing how much each party is owed, or owes, Tuaman Inc. Once that was sorted out, the balance of the assets should be paid out on the basis set out in the EMA (50 per cent Tua, 25 per cent each for Pugh and Barry).

Mr Toebes said he took it that Tua was claiming he was owed $1.7 million by Tuaman Inc.

Assuming Tua succeeded on that basis and Pugh and Barry were found not to owe the company anything, a possible best case scenario for his clients may be that they each receive 25 per cent of remaining company assets after payment to Tua, about $1.3 million, with Tua receiving the balance of $2.6 million.

However, this may be unlikely on two counts. The assumption Tua is owed $1.7 million by the company is based on an assessment by court-appointed accountants who also concluded that Pugh and Barry together owe Tuaman Inc about $2 million.

It also assumes that the courts will uphold the validity of the EMA, which Tua's solicitor Luke Kemp confirmed would be challenged in court.

Tua will argue he was never bound by it and it was void from the outset because of - as the judge put it - "undue influence and other factors".

If Tua's argument succeeds, it may follow that Pugh and Barry are entitled to no more than fees for the services they provided to the boxer. That would mean the company's $7 million assets were his.

In a best case scenario for Tua, it could also be held that his managers owe up to $2 million between them.