CourtListener 10679190•In Re ColossusBets Limited v. the State of Texas
In Re ColossusBets Limited v. the State of Texas
CourtListener 10679190Txctapp1523.09.2025
Gesamter Gesetzestext
ACCEPTED
15-25-00150-CV
FIFTEENTH COURT OF APPEALS
AUSTIN, TEXAS
9/23/2025 3:21 PM
CHRISTOPHER A. PRINE
CLERK
FILED IN
15th COURT OF APPEALS
No.15-25-00150-CV AUSTIN, TEXAS
9/23/2025 3:21:02 PM
__________________________________________________________________
CHRISTOPHER A. PRINE
Clerk
15th Court of Appeals of Texas
__________________________________________________________________
In Re ColossusBets Limited, Relator
_________________________________________________________________
REAL PARTY IN INTEREST JERRY B. REED’S RESPONSE
TO RELATOR’S MOTION TO STAY PROCEEDINGS UNDER
TRAP 52.10
_________________________________________________________________
Original Proceeding from Cause No. 25-BC03A-0007
Business Court of Texas Third Division Austin, Texas
__________________________________________________________________
LAGARDE LAW FIRM, P.C.
Richard L. LaGarde
State Bar No. 11819550
Mary LaGarde
State Bar No. 24037645
230 Westcott St., Suite 100
Houston, TX 77007
TEL: (713) 993-0660
richard@lagardelaw.com
mary@lagardelaw.com
ATTORNEYS FOR REAL
PARTY IN INTEREST
TABLE OF CONTENTS
Page
Table of Contents i
Index of Authorities ii
I. Background 1
II. Summary of Arguments 2
III. Standard for Temporary Relief 3
IV. Argument 3
A. No Compelling Circumstances Are Shown 3
B. The Status Quo Is Ongoing District Court
4
Proceedings
C. Discovery Will Be Used Regardless 4
D. A Stay Would Prejudice Reed 5
E. Relator Is Unlikely to Obtain Mandamus Relief 6
V. Prayer 7
Certificate of Service 8
Certificate of Compliance 8
i
INDEX OF AUTHORITIES
Cases
Coalition of Cities for Affordable Utility Rates v. Third Court of Appeals,
787 S.W.2d 946 (Tex. 1990) .............................................................2,3,4
Statutes and Rules
Tex. R. App. P. 52.10 ............................................................................ 3
Tex. R. App. P. 9.4(i) ........................................................................... 8
Tex. Gov’t Code § 25A.004(b)(2) ......................................................... 2, 6
Other Authorities
Hague Convention on the Service Abroad of Judicial and Extrajudicial
Documents ........................................................................................... 5
ii
TO THE HONORABLE FIFTEENTH COURT OF APPEALS:
Real Party in Interest, Jerry B. Reed, respectfully asks the Court to
deny ColossusBets Limited’s motion to stay proceedings pending
disposition of its mandamus petition.
I. BACKGROUND
Real Party in Interest, Jerry Reed, alleges that Relator ColossusBets
and its co-defendants orchestrated a fraudulent scheme to rig the $95
million April 22, 2023 Lotto Texas drawing by bulk-printing millions of
tickets using counterfeit QR codes and unauthorized terminal access.
Reed, who held a legitimate winning ticket for the May 17, 2023 drawing,
lost more than $52 million in diminished winnings as a direct result.
Defendants’ scheme destabilized the Texas Lottery itself.
Defendants secured the $95 million jackpot by controlling almost all
number combinations. The fallout was swift: the Governor ordered a
Texas Rangers investigation, the Lieutenant Governor called it the
“biggest fraud ever perpetrated on the Texas Lottery,” the Executive
Director of the Lottery Commission resigned, and the Legislature
dissolved the Lottery Commission altogether.
1
Mr. Reed’s suit was filed April 8, 2025 in Travis County District
Court. On May 9, 2025, Rook GP, LLC and Rook TX, LP removed the case
to the Business Court under Chapter 25A. On June 18, 2025, the
Business Court denied Plaintiff’s motion to remand, citing allegations
about the date of formation of the Rook defendants.
Plaintiff then filed a Fourth Amended Petition on August 5, 2025,
expressly removing allegations regarding the date of formation of the
Rook defendants and disclaiming any reliance on governance or internal
affairs theories. On August 25, 2025, Judge Andrews remanded the case,
holding that the Business Court no longer had jurisdiction under
§25A.004(b)(2). ColossusBets now seeks mandamus.
II. SUMMARY OF ARGUMENT
The Supreme Court has made clear that a stay of trial court
proceedings should not be granted absent “compelling
circumstances”. Coal. of Cities for Affordable Util. Rates v. Third Court
of Appeals, 787 S.W.2d 946, 947 (Tex. 1990). None are shown here.
ColossusBets seeks a blanket freeze that would derail critical
deadlines and discovery already ordered by the trial court. But it
2
identifies no irreparable harm, no threat to appellate jurisdiction, and no
compelling reason to halt proceedings. By contrast, a stay would inflict
concrete prejudice on Reed, including jeopardizing his ability to serve
elusive foreign defendants by the December joinder deadline and
delaying essential tracing of jackpot proceeds so that the individual
gamblers can be identified and joined.
Because Relator fails to demonstrate compelling circumstances, Rule
52.10 does not permit a stay.
III. STANDARD FOR TEMPORARY RELIEF
Temporary relief under TRAP 52.10 is discretionary and appropriate
only to protect appellate jurisdiction and maintain the status quo. The
Supreme Court has cautioned that granting a stay “increases delay and
expense and should not be done absent compelling circumstances.” Coal.
of Cities, 787 S.W.2d at 947.
IV. ARGUMENT
A. No Compelling Circumstances Are Shown
3
Relator identifies no compelling circumstance that would justify the
extraordinary relief it seeks. Its motion does not allege irreparable harm,
much less demonstrate why routine participation in discovery would
warrant freezing the entire case. The only “harm” Relator describes is
having to comply with discovery and appear at hearings—ordinary
burdens of litigation that do not qualify as compelling circumstances.
B. The Status Quo Is Ongoing District Court Proceedings
The remand order has already been effectuated. The District Court
has resumed jurisdiction, set October 1 hearings on Reed’s motions to
compel, and is actively administering the case. Granting a stay would not
preserve the status quo but change it, interrupting pending hearings and
shielding defendants from discovery obligations. That is the very type of
disruption the Supreme Court warned against in Coalition of Cities.
C. Discovery Will Be Used Regardless
Even if mandamus were granted, the discovery now proceeding will
not be wasted. The case will still require discovery into Rook’s ownership,
the identity of the gamblers who funded the April 22, 2023 ticket pool,
and the tracing of jackpot proceeds. In addition, ColossusBets’ Special
Appearance necessitates jurisdictional discovery into its Texas contacts.
4
This evidence will be relevant in any forum and under any pleading.
Necessary discovery is not irreparable injury—and certainly not a
compelling circumstance that justifies the delay and expense of a stay.
D. A Stay Would Prejudice Reed
The service and joinder deadline is approaching. The Agreed
Scheduling Order requires service and joinder by December. Three
defendants are located in the United Kingdom and must be served under
the provisions of the Hague Convention. One of them, Zeljko Ranogajec,
is notoriously difficult to serve. He’s known in gambling circles as “The
Joker” and is so elusive he’s been termed the “Loch Ness Monster” by the
British press. He resides in a high-security London apartment block
across from Buckingham Palace. Any further delay risks making timely
service on Ranogajec and the other U.K. defendants impossible.
Identifying the gambling pool members is likewise time sensitive.
Reed must trace funds to the individuals who composed the gambling
pool and join them before the December deadline. That process requires
subpoenas to financial institutions and discovery from defendants. A stay
would freeze these steps and dangerously compress the schedule.
5
Discovery hearings are also set for October 1. The District Court is
poised to compel the Rook defendants to comply with a discovery order
issued by the trial court on August 4, 2025, but ignored to date by those
defendants.
A scheduled deposition of Relator’s corporate representative in
London set for September 24, 2025 was cancelled days before the
deposition after Relator declared that it would not produce a witness
pending its filing of a motion to stay with this Court.
Delay benefits only Relator and the other defendants. Prejudice
falls squarely on Reed.
E. Relator Is Unlikely to Obtain Mandamus Relief
Mandamus requires a clear abuse of discretion. The Business
Court’s August 25, 2025 remand opinion was detailed and well-reasoned.
Whether jurisdiction can be revisited after pleadings are amended is, at
best, a debatable issue. Debatable issues are not good grounds for
mandamus.
Relator’s “one-way door” theory is not found in the text of Chapter
25A and reads into Texas law words the Legislature intentionally
omitted. Nothing in Chapter 25A prevents remand when the live action
6
no longer falls within the Business Court’s jurisdiction. Real Party in
Interest plans to file a more detailed response to Relator’s Petition for
Mandamus in the coming days.
V. PRAYER
For these reasons, Real Party in Interest Jerry B. Reed respectfully
asks the Court to deny Relator’s Motion to Stay Proceedings.
DATED: September 23, 2025.
Respectfully submitted,
LAGARDE LAW FIRM, P.C.
/s/ Richard L. LaGarde
Richard L. LaGarde
State Bar No. 11819550
Mary LaGarde
State Bar No. 24037645
230 Westcott St., Suite 100
Houston, TX 77007
TEL: (713) 993-0660
richard@lagardelaw.com
mary@lagardelaw.com
ATTORNEYS FOR
REAL PARTY IN INTEREST
7
CERTIFICATE OF SERVICE
I certify that, on September 23, 2025, a true and correct copy of the
Response of the Real Party in Interest to Relator’s Emergency Motion to
Stay Proceedings was served on all counsel of record via the Court’s
electronic-notification system. The Honorable Melissa Andrews,
Respondent, was served via email to her court coordinator.
/s/ Richard LaGarde
Richard LaGarde
CERTIFICATE OF COMPLIANCE
This brief complies with the length limitations of TEX. R. APP. P.
9.4(i)(2)(B) because this brief consists of 1,100 words, excluding the parts
of the brief exempted by TEX. R. APP. P. 9.4(i)(1).
/s/ Richard LaGarde
Richard LaGarde
8
Automated Certificate of eService
This automated certificate of service was created by the efiling system.
The filer served this document via email generated by the efiling system
on the date and to the persons listed below. The rules governing
certificates of service have not changed. Filers must still provide a
certificate of service that complies with all applicable rules.
Richard LaGarde on behalf of Richard LaGarde
Bar No. 11819550
richard@lagardelaw.com
Envelope ID: 105977679
Filing Code Description: Response
Filing Description: Real Party in Interest's Response to Motion to Stay
Status as of 9/23/2025 3:26 PM CST
Case Contacts
Name BarNumber Email TimestampSubmitted Status
David Harrell 793905 david.harrell@troutman.com 9/23/2025 3:21:02 PM SENT
Richard Lagarde 11819550 richard@lagardelaw.com 9/23/2025 3:21:02 PM SENT
Manfred Sternberg 19175775 manfred@msternberg.com 9/23/2025 3:21:02 PM SENT
Aimee Oleson 24036391 aoleson@sheppardmullin.com 9/23/2025 3:21:02 PM SENT
Mary Lagarde 24037645 mary@lagardelaw.com 9/23/2025 3:21:02 PM SENT
Jeffrey Adams 24006736 jeff@jeffadamslaw.com 9/23/2025 3:21:02 PM SENT
Jon Smith 18630750 jon@jonmichaelsmith.com 9/23/2025 3:21:02 PM SENT
Mia Lorick 24091415 Mia.Lorick@troutman.com 9/23/2025 3:21:02 PM SENT
Charles Conrad charles.conrad@pillsburylaw.com 9/23/2025 3:21:02 PM SENT
Grace Miller 24132499 gmiller@sheppardmullin.com 9/23/2025 3:21:02 PM SENT
Lindsey Mitchell lindsey.mitchell@pillsburylaw.com 9/23/2025 3:21:02 PM SENT
Derrick Carson Derrick.carson@pillsburylaw.com 9/23/2025 3:21:02 PM SENT
Bradden Pippin 24143893 bradden.pippin@troutman.com 9/23/2025 3:21:02 PM SENT
Kathleen Laird Kathleen.Laird@Troutman.com 9/23/2025 3:21:02 PM SENT
Jon Sink jonathan.sink@pillsburylaw.com 9/23/2025 3:21:02 PM SENT
Honorable Melissa Andrews bcdivision3a@txcourts.gov 9/23/2025 3:21:02 PM SENT
Ryan Dickinson ryandickinson79@gmail.com 9/23/2025 3:21:02 PM SENT
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