DETROIT (May 7, 1996) - The Indianapolis Motor Speedway (IMS) corporation filed a lawsuit Monday against Championship Auto Racing Teams Inc. (CART) in Indianapolis, but the legal documents had not been served to the organization through Tuesday's business day. Speedway Suit Duplicates
CART's Detroit Suit Versus IMS
The subject matter of the lawsuit apparently is the same as the one filed by CART against IMS on March 22 in Detroit. The suits relate to the restrictive measures taken by IMS in structuring the Indy Racing League and more specifically the restrictive qualifying procedures adopted for the 1996 Indianapolis 500. Both suits also included the issue of CART's right to use the IndyCar name and mark in accord with the trademark license agreement signed in 1992.
No hearings have been scheduled and CART is under no restraints in continuing its business operations, including its lawful use of the IndyCar name and mark.
IMS earlier had requested a 30-day extension of time to respond to CART's suit filed in Detroit, a request that was granted by CART. Although CART's earlier-filed lawsuit related to these issues, trademark issues as well as misconduct by Anton Hulman George when he sat on the IndyCar board, the organization has not yet filed its antitrust claims against IMS and the IRL.
The decision was part of an effort to not escalate the legal aspects of the dispute and attempt to find if any common ground existed for further discussions. Particularly, IndyCar hoped that some of the differences between the two organizations might be resolved in time to at least ensure a competitive, open and successful Indy 500 in 1997.
"We are disappointed by their actions regarding what we believed was a good-faith gesture," said Andrew Craig, IndyCar president and chief executive officer. "IndyCar is prepared to defend itself and assert its claims against IMS in any proper venue. We are confident that we will prevail on all issues involved."
IndyCar, despite its recent overtures for discussions to attempt to resolve some of the issues between the organizations, has learned that IMS was working toward the preparation of the Indianapolis suit filed Monday rather than its response to the Detroit suit. IndyCar further believes that the suit is properly heard in Detroit as the subject matter of the disputes is the same in both cases. The court will resolve this jurisdictional dispute.
Based on the restraints on competition imposed by IMS and the IRL, IndyCar believes its conduct, including the scheduling of the U.S. 500 as an alternative race for teams unwilling to compete for only eight open slots at the Indy 500, is entirely reasonable and lawful.
In a copy of the lawsuit received by IndyCar lawyers, it appears that IMS and the IRL did not request a jury trial in its lawsuit as CART did in its earlier Detroit case. If the matter is heard in Indianapolis rather than Detroit, IndyCar again will demand its right to a jury trial so that a cross section of ordinary citizens in the Indianapolis community can decide whose conduct was illegal and/or improper. IndyCar believes its factual case is very strong and that it will ultimately be vindicated by the common-sense verdict likely to result from a jury trial of the issues in either city.
IndyCar will make no further statements at this time.
Source: IndyCar Website
Used by permission
