ESPN confirmed the court's decision with public records, following an initial report by TMZ. The agency, The Ballengee Group, had accused Diaz of owing more than $1 million for services.

In a motion to dismiss the case, submitted last August, Diaz's defense argued the fighter owns no property in Texas and his only connection to the state is that The Ballengee Group is based there. Ultimately, a Texas judge agreed with that assessment.

"We are very pleased the court dismissed the case because it should have never been filed in Texas in the first place," said Diaz's attorney Jeremiah Reynolds, in a statement released to ESPN.

Diaz was unavailable for comment. Jason Friedman, an attorney representing The Ballengee Group, says they intend to file another lawsuit against Diaz.

"It was my client's position that Diaz had availed himself to be sued in Texas; unfortunately the Texas Court did not share the same view. The Court's ruling has no effect on the merits of the case and my client does intend to vigorously pursue its claims in another venue, whether it be California or Nevada."

The court's ruling does not prevent The Ballengee Group from filing a lawsuit against Diaz in another jurisdiction.

Diaz, 32, hasn't fought in the UFC since August 2016, but has recently discussed a comeback. He fought Conor McGregor twice in 2016, and The Ballengee Group claims it negotiated both fights. Diaz fired The Ballengee Group shortly before the second fight, for which he was paid a disclosed purse of $2 million.