Texas judge dismisses ex-manager's lawsuit against Nate Diaz

A federal judge in Texas has dismissed a lawsuit filed against Nate Diaz by his former management firm, but the court battle might not be over.

U.S. District Judge Jane J. Doyle ruled this past Friday that the Ballengee Group doesn’t have the ability to file suit against Diaz in Texas, where the management firm resides. TMZ first reported the news.

“The Court ruled the case should have not have been filed in Texas because Nate has not fought in Texas,” Diaz attorney Jeremiah Reynolds told MMAjunkie.

Attorneys for Ballengee say they’re now deciding whether to refile the suit in California, where Diaz currently lives, or in Nevada, where he frequently fights.

“My clients are going to pursue this case,” Ballengee attorney Jason Friedman said. “It’s not over, and we’re going to refile.”

Ballengee claims it helped Diaz negotiate a new UFC contract that included his blockbuster bouts with Conor McGregor, and also took on UFC women’s bantamweight Leslie Smith as a client. The firm claims it was released without pay after attorney Sam Awad tortiously interfered with their business relationship.

The firm sought more than $1 million in damages from Diaz, also naming Awad and Smith as co-defendants. Smith settled with Ballengee this past August, though Doyle’s ruling dismisses the suit against Smith and Awad.

Diaz banked career-high paydays against McGregor, earning a disclosed $500,000 for UFC 196 and $2 million for UFC 202, though his final pay was likely much higher after pay-per-view bonuses.

Diaz (19-11 MMA,14-9 UFC), 32, remains inactive on the UFC’s roster, but has recently indicated he wants to return to the octagon against UFC welterweight champion Tyron Woodley. The champ recently lobbied in kind for a fight with the Stockton, Calif., native, setting off a saga with UFC President Dana White.

Diaz was spotted cageside earlier this month at UFC Fight Night 126 in Austin, Texas, where he forced FS1 cameras to scramble when he tried to light a joint on TV.

Smith (10-7-1 MMA, 4-3 UFC) is set to face Aspen Ladd (6-0 MMA, 1-0 UFC) at UFC Fight Night 128, which takes place April 21 in Atlantic City, N.J. She recently kicked off Project Spearhead, an effort to unionize UFC and Bellator fighters.

For more on the UFC’s upcoming schedule, check out the UFC Rumors section of the site.