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FaZe Clan Inc. v. Tenney

'Colorado River' Factors Do Not Warrant Stay of Breach Suit Against Video Gamer

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OPINION AND ORDER   The defendant has moved to dismiss or stay this action under Colorado River Water Conservation Dist. v. United States, 424 U.S. 800 (1976), in favor of two parallel California proceedings. For the following reasons, the motion is denied. The instant action is the third lawsuit arising from a dispute between FaZe Clan and Turner Tenney. FaZe Clan, a California-based “esports and entertainment organization,” Compl. 15, argues that a contract exists between it and Tenney, a professional video gamer and social media celebrity. The complaint alleges that this contract — the “Gamer Agreement,” Compl., ECF No. 1, 2 — essentially provides that FaZe Clan will promote and support Tenney’s career in exchange for a portion of his earnings, a noncompete provision, and some intellectual property rights, Compl.

19-27. FaZe Clan asserts eight causes of action against Tenney, most sounding in breach of contract, for withholding revenue from FaZe Clan, disparaging FaZe Clan, attempting to start an “esports” organization to rival FaZe Clan, and other actions. Compl.

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