Nick Denton Bankruptcy judge lets Hogan continue suit against Gawker founder The move will likely force Nick Denton to declare bankruptcy

A federal bankruptcy court judge on Tuesday ruled that Hulk Hogan should not be prevented from collecting a multi-million dollar judgment against Gawker founder Nick Denton.

Denton had asked the bankruptcy court to issue a preliminary injunction, which would have prevented Hogan from trying to collect $10 million in punitive damages and $115 million in emotional and economic damages against him. Denton argued that he played an integral role in Gawker Media's operations and sale process and that the distraction of the Hogan litigation would prevent him from devoting all of his energy to the Gawker Media sale process.

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The judge did not buy the argument.

In March, the former professional wrestler won a Florida jury trial against Gawker Media, Denton and former Gawker.com editor A.J. Daulerio. After the trial court judge refused to reduce the verdict, Gawker immediately declared bankruptcy. By declaring bankruptcy, Gawker froze all litigation against it, preventing Hogan from collecting on the judgment against the company.

But Denton and Daulerio did not declare bankruptcy, so Hogan could still go after them. The bankruptcy court overseeing the Gawker case issued a temporary restraining order, which prevented Hogan from going after Denton or Daulerio, but that order expired on Tuesday. Denton had hoped that the judge would issue a preliminary injunction, which would have continued to freeze the Hogan litigation, at least until the Gawker bankruptcy sale was over in mid-August.

Now, Denton has little choice but to declare personal bankruptcy.