Legal Drafting: Gillett Evernham Files Suit Against Gordon
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GEM Claims Gordon Violated Terms
Of Takeover Agreement In Lawsuit |
Gillett Evernham Motorsports (GEM) has filed suit against Robby Gordon Motorsports (RGM) Owner & NASCAR driver Robby Gordon, claiming that he "violated terms of a tentative agreement that would have sold his team to GEM for $23.5[M] earlier this year," according to Bob Pockrass of NASCAR SCENE. The deal, agreed to on January 29, was "pending an audit and other due diligence from GEM, which could have adjusted the price." Had the deal gone through, Gordon "would have had a four-year driving contract with GEM that would have paid him $3[M] annually plus 45[%] of race winnings as well as insurance and other provisions customary for NASCAR driver agreements." The lawsuit, which was filed on August 25 in North Carolina Superior Court and seeks unspecified damages, claims that GEM was "pursuing efforts to close the deal" before Gordon in May "asked out of the deal" in exchange for an engine deal for the remainder of the '08 season. The GEM-RGM agreement included an exclusivity clause that GEM claims "would not allow Gordon to entertain talks with other teams about possible mergers." The exclusivity clause is the "primary basis for the lawsuit," as GEM claims that Gordon "has talked to other teams about merging." Gordon said in a statement, "We categorically reject the allegations that are contained in the complaint, and the truth will come out if the case proceeds" (SCENEDAILY.com, 9/4).
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