Rocket League Pro’s German Showdown: Contractual Penalty Sparks Fiery Litigation!

A recent decision in Germany delves into the intricate legal landscape of esports. Notably, this is potentially the second German judgment explicitly centered on esports. The litigation emerged when an organization pursued a claim against its former esports player, seeking a contractual penalty of EUR 5,000. The organization, however, faced defeat.

Background

The narrative unfolds in 2020. The claimant, on the cusp of ascending to professional status in Rocket League, inked a deal with a Berlin-based organization harboring lofty aspirations. The duo settled on a monthly remuneration of EUR 450. Yet, their alliance was short-lived, dissolving merely a month later at 2020’s close.

Come January 2021, the claimant aired his views on Twitter regarding his trysts with smaller esports entities. Despite the tweet’s anonymity, the organization’s top brass perceived it as a veiled attack, deeming it a “malicious slander.” This spurred them to seek legal counsel.

Contractual Penalty Clause

At the heart of the dispute lay a clause in the player’s contract, empowering the organization to claim damages for any image tarnishing, with a floor limit set at EUR 5,000. Viewing the tweet as a smear on their reputation, the organization, in July 2021, pressed for the stipulated penalty.

Initially under the aegis of a different legal firm, the claimant rebuffed the payment demand. Fast forward to September 2022, the organization opted for litigation.

Court Proceedings

A jurisdictional clause in the player’s contract led the organization astray, causing them to knock on the wrong court’s doors. This faux pas resulted in considerable procedural lag. When the case finally landed in the appropriate court, the organization’s contention was the tweet’s activation of the contractual penalty clause. Adding a twist, they introduced an allegation of a lost sponsorship deal, purportedly worth a five-figure sum, attributed to the claimant’s actions.

The claimant’s defense hinged on multiple tenets: his non-contractual status at the tweet’s time, the organization’s non-existence during the lawsuit’s filing, and the inherent vagueness of the contractual penalty clause rendering it null and void.

Verdict

In the May 2023 oral hearing, the court signaled its inclination to dismiss the lawsuit, citing the ambiguous nature of the contractual penalty clause. The final gavel echoed in favor of the claimant, leaving the organization’s aspirations thwarted. Consequently, not only did the organization miss out on the EUR 5,000, but they also bore their legal expenses amounting to roughly EUR 2,800.

Conclusion

The claimant, crowned as the Rocket League World Champion amidst the legal tussle, underscored the essence of meticulous scrutiny of payment demands, especially in the esports realm. Conversely, the organization’s pursuit not only deprived them of the EUR 5,000 but also set them back by an additional EUR 2,800. The judgment stands irrevocable

(AG Wildeshausen, Judgment dated 6 July 2023, Case No. 4 C 31/23)

Via E-Sportanwalt