World Champion Boxer Off the Hook

By Katie Gibson

LOS ANGELES, Ca. – For many years, boxing has been plagued by illegal activity and scandal with regard to “fixing” fights and managers were accused of living off the earnings of professional boxers.

To protect professional boxers from such practices, California enacted a Boxing Act to define the term “boxing manager” as a person who enters into a written contract with a professional boxer in order to represent the interests of the athlete; further, the manager is required to be licensed with the State Athletic Commission in order to be recognized as a boxing manager in the state of California.

Superior Court Judge Paul Gutman ruled January 22 that professional boxer and two-time world champion Marco Antonio Barrera, known in the boxing world as “The Baby Face Assassin,” is not to be held liable for violating an oral agreement with alleged boxing manager Jose Castillo. Castillo filed three complaints against Barrera in October 2004 claiming breach of contract, fraudulent inducement to enter a contract, and employment with no prior agreement regarding compensation.

A trial court in 2004 granted summary judgment on behalf of Barrera on the basis that Castillo was not a licensed manager in California and there was no written contract between the two parties; therefore, Barrera did not commit a breach of contract. Castillo appealed the decision; the verdict delivered Monday by Judge Gutman affirmed the trial court ruling.

Castillo was first introduced to the featherweight boxer in 1994 at a professional boxing match. According to court documents, in December 2002 Barerra consulted Castillo regarding his existing manager, Richard Maldonado.

Records indicate that Barrera terminated his written contract with former boxing manager Maldonado in May 2003 after consulting with Castillo. Subsequently, Barrera contacted Castillo regarding the future management of the boxer’s professional career and business entities including Barrera Promotions, Inc. and Marco Antonio Boxing, Inc., as well as handling the personal affairs for the athlete.

The two entered into a verbal agreement that Castillo would serve as manager to Barrera and be paid in accord with the practice in the professional boxing industry. In September 2003, Castillo became the primary business and financial advisor for the athlete, as well as the chief contact for clients. He also served on behalf of Barrera in the settlement negotiations with ex-manager Maldonado.

During Castillo’s time as Barrera’s manager he negotiated an exclusive boxing promotion contract with Golden Boy Promotions, Inc., which is owned and operated by professional boxer Oscar De La Hoya. Castillo arranged for a professional boxing match against Manny Pacquaio, held in Texas in November 2003, and also assisted Barrera in settling three lawsuits against him and arranged for legal counsel to represent him to help extricate the athlete from tax problems, which could have supposedly ended his career.

In October 2004, Castillo and Barrera set-up a meeting to discuss the parameters of the May 2003 oral agreement and to modify how much Castillo was to be paid for his professional services in accord with the established customs and practices of the professional boxing industry.

During the meeting it was determined that Castillo had worked approximately 400 to 500 hours on Barrera’s behalf in 2003 and should be compensated $275,000 for his professional services. Barrera allegedly terminated the contract between the two business partners and refused to talk with Castillo immediately following the meeting.

According to the opinion written by Judge Sandy R. Kriegler, Castillo’s complaint alleged that he engaged in conduct falling within the lawful definition of a manager of a professional boxer. However, Kriegler noted because there was no established written contract and without a license, the summary judgment was properly granted and to rule that Barrera must compensate Castillo for the services rendered would be inconsistent with California law regarding the Boxing Act and supporting regulations.

According to Castillo’s lawyer, James E. Blancarte of the Los Angeles law firm Carlsmith Ball LLP, no further action will take place regarding this suit.

“The ruling reiterates the initial summary judgment and Mr. Barrera is thankful he will not have to face his friend in court,” said Barrera’s attorney, Eric R. Wiesel of Matheny Sears Linkert & Long, LLP, a civil law practice located in Sacramento, California.