J.A. Masters v. Beltramini

CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 3, 2025
Docket23-20292
StatusUnpublished

This text of J.A. Masters v. Beltramini (J.A. Masters v. Beltramini) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.A. Masters v. Beltramini, (5th Cir. 2025).

Opinion

Case: 23-20292 Document: 137 Page: 1 Date Filed: 01/03/2025

United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit

FILED No. 23-20292 January 3, 2025 ____________ Lyle W. Cayce J.A. Masters Investments; K.G. Investments, Clerk

Plaintiffs—Appellants,

versus

Eduardo Beltramini,

Defendant—Appellee. ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:20-CV-4367 ______________________________

Before Haynes, Willett, and Oldham, Circuit Judges. Per Curiam: * This appeal stems from a five-day jury trial on allegations of fraud and breach of contract. Appellants J.A. Masters Investments and K.G. Investments raise several issues for our review. But our previous majority opinion determined that before we could reach the merits, a limited remand was necessary to resolve a threshold jurisdictional question. The district court held additional proceedings, and we are now satisfied as to our

_____________________ * This opinion is not designated for publication. See 5th Cir. R. 47.5. Case: 23-20292 Document: 137 Page: 2 Date Filed: 01/03/2025

No. 23-20292

jurisdiction. Proceeding now to the merits, we AFFIRM the district court across the board, with one exception: we VACATE its award of attorney fees and REMAND for a determination as to whether they have been properly segregated. I A This case involves multiple failed business dealings in the soccer industry. Defendant Eduardo Beltramini is a FIFA match agent who promotes and arranges professional soccer matches through an unincorporated business called “Planet Futbol Event Management.” There are many facets to operating Planet Futbol, and arranging professional soccer matches generally, one of which is financing the matches. Rather than fund the entire operation himself, Beltramini would often invite outside investors to underwrite part of the match, and in return the investors would receive a portion of the profits. Cue the named plaintiffs in this case: J.A. Masters Investments and K.G. Investments, both of which are owned by Jefferson Castro Guevara. 1 Guevara, who the district court described as knowing little to nothing about either soccer or finance, decided he wanted to not only invest in future soccer matches with Beltramini but also buy his company, Planet Futbol. To that end, the parties signed a total of seven contracts, six for the soccer matches in which Guevara wanted to invest and one for the sale of Planet Futbol.

_____________________ 1 We will refer to J.A. Masters Investments and K.G. Investments collectively as “Plaintiffs” and will refer to Mr. Guevara individually when the context necessitates it. Relatedly, Plaintiffs’ liberal use of “appellant” and “appellee” throughout their briefing, which they sometimes confuse and interchange with the parties’ actual names, illustrates the wisdom behind Rule 28(d) of the Federal Rules of Appellate Procedure.

2 Case: 23-20292 Document: 137 Page: 3 Date Filed: 01/03/2025

With respect to the soccer matches, the parties agreed to split the expenses and profits in various ways (usually 50/50). At the end of each match, Beltramini would provide Guevara an accounting of the revenue and expenses—or, as Plaintiffs describe it, “a self-composed worksheet”—for purposes of distributing the profit. Beltramini admits that calculating the expenses for each game required “a tremendous amount of record keeping,” and the district court observed that “although Mr. Beltramini knew a lot about professional soccer, he knew less about business and accounting.” At any rate, based on the numbers he estimated for each game, Beltramini would distribute the profit to Plaintiffs commensurate to their percentage investment. With respect to the sale of Beltramini’s company, Planet Futbol, Guevara agreed to a purchase price of $300,000, payable in three installments of $100,000. The sale was memorialized in the parties’ Business Sale Agreement, which was drafted by Beltramini’s son, Mauro, who at the time was a Texas-licensed attorney. The Business Sale Agreement had seventeen articles, but only three are relevant to this dispute. First, in Article 4, the parties agreed to the payment terms: Guevara would pay the first $100,000 on the closing date, the second $100,000 after the first soccer match under the new ownership of Guevara, and the third $100,000 after the second soccer match. Importantly, however, Article 4 also made clear that “[t]he entire Purchase Price must be paid in full no later than July 1, 2020, notwithstanding” the above terms. Second, in Article 8, titled “Conditions Precedent,” the parties agreed to five conditions that Beltramini had to meet “before the Closing Date.” One of those conditions, subsection (a)(IV), required Beltramini to provide Guevara “with any and all information required so that [Guevara] may step into the shoes of [Beltramini] for the proper operation of the

3 Case: 23-20292 Document: 137 Page: 4 Date Filed: 01/03/2025

Business.” In the last sentence of Article 8, the parties agreed that if either of them did “not satisfy their obligations under this clause, the entire Agreement [would] be null and void” and there would be “no further relationship or obligations between the Parties.” Third, in Article 10, the parties agreed to a noncompete clause: “For a period of 5 years after [Beltramini’s employment under Guevara’s new ownership], Beltramini agrees to refrain from engaging directly or indirectly, in any form of commercial competition (including . . . through business, marketing, investment or financial activities) with [Guevara].” The parties signed the agreement in October 2019, and Guevara paid Beltramini the first $100,000 on the closing date, as promised. The subsequent soccer matches envisioned by the agreement, however, never came to pass. The first match was scheduled for March 2020, the same time COVID-19 was spreading throughout the United States. Predictably, the games were canceled. When Guevara tried to recover a bond payment he made to FIFA for the first game, he got into a “disagreement over funds” with Beltramini, which apparently precipitated this lawsuit. B Plaintiffs filed suit against Beltramini in the Southern District of Texas in December 2020, asserting, among other things, claims of fraud and breach of contract. Plaintiffs specifically alleged that Beltramini, when composing his post-game accounting reports, “wrongfully inflated” the matches’ expenses and “devalued [the] profits owed” to them. They also alleged that Beltramini failed in his obligation of handing the Planet Futbol business over to Guevara by not helping him obtain his FIFA agent license and by not “ced[ing] control over and provid[ing] all business contacts to Mr. Guevara in furtherance of the on-going business acquisition.”

4 Case: 23-20292 Document: 137 Page: 5 Date Filed: 01/03/2025

Shortly after Plaintiffs filed their lawsuit in federal court, Beltramini filed a parallel suit in state court for breach of contract, alleging that Plaintiffs were $200,000 short on the purchase price for Planet Futbol. Plaintiffs, as defendants in the state-court action, removed the case to federal court and moved to consolidate the cases, which the district court granted. The parties proceeded to trial on the consolidated actions. “It was not an easy trial,” the district court remarked, and it “made every effort to shield the jury from all [the] issues.” To that end, the district court granted Beltramini’s posttrial motion for judgment as a matter of law on two of the eight claims, concluding that (1) Plaintiffs failed to show a material misrepresentation with respect to the Peru v.

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J.A. Masters v. Beltramini, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ja-masters-v-beltramini-ca5-2025.