CART sued for Fontana cancellation.

[Fogelhund]

http://www.montereyherald.com/mld/mo...ts/7149763.htm

Seems ISC wants to make sure that they get their Promoter's fee back.

[macdaddy]

And so they should. Makes me wonder why this even had to go this far... Pook should have mailed them a cheque the next day.

[Jordi]

Either that, or do a winter race in December. I go for the latter option.

[gttouring]

what the? CART had no control over the fires, nor the tracks decision to be Disaster relief center, what they were supposed to hold a race under these conditions? ISC is playing on CART's weakness to destroy it- dumb punks

[Dov]

Originally posted by gttouring
what the? CART had no control over the fires, nor the tracks decision to be Disaster relief center, what they were supposed to hold a race under these conditions? ISC is playing on CART's weakness to destroy it- dumb punks

AGREE 100% !

[macdaddy]

The ISC postponed, only to have CART cancel outright.

[avsfan733]

I agree with Dov and gt! I can almost gaurantee a contract will have a clause for force majuere in the contract. Not to mention, if ISC made the decision to postpone without contacting cart, they really have no case because they are paying to host or race on a specifi date, if they decide to change the date and say "we won't have a race on this dat" Cart can just say "fine **** off"

[Duffacus]

Its not CARTs fault there is fires so why should they get the blame for having to cancel a race!!!!! People are just trying to cause more trouble for CART! Leave them alone and let them get on with producing a good motorsport series!

[Liz]

I'm sure that contract has a force majeure clause in it (not to mention that the ISC made the decision over the objections of CART who wanted to hold the race ... this one ought to be a laugher as the Judge makes the ISC pay costs and attorney fees to boot.

You cannot sue another person because of a decision that you yourself made. Unless you are TGF.

[corkholio]

Bottom line is CART was the one who outright cancelled the event, not ISC, who postponed it due to safety reasons and was willing to offer another date (although not a great one), but one that CART probably didn't have a scheduling conflict with. Not that I really want ISC to get the check back but there is no way that CART should be able to keep the check when it refused to reschedule due to a natural disaster. They must have asked Alain Prost for advice on how to run a business or something.

[Flatspot]

I think everyone is jumping to conclusions here. First, the article does not say that ISC has filed suit. It says that they have asked for most of their money back. Those are two completely different things. I don't see anywhere where CART has refused to negotiate on this either but probably will.

This type of cancellation is far different from the one in Texas. Promotors and sanctioning bodies who put on events of this scale most always purchase insurance against these type of cancellation occurances. The parties are jockeying for position and in the end both ISC's and CART's insurance companies will subrogate the claim and pay each parties loss before it goes to court. This is why OWRS doesn't really care.

[Flatspot]

IMO the writer in Monterey is way out of bounds. Here is the only salient comment from the press release:

"The Company expects the cancellation to negatively impact fourth quarter total revenue and earnings by $4 million to $5 million and $0.01 to $0.02 per diluted share, respectively. In addition, fourth quarter results will be further impacted by a mutually agreeable amount to cover legitimate expenses reasonably incurred by CART in preparing for the event. This undetermined amount will be deducted from the $2.5 million pre-tax organization and rights fee due back to ISC, which had been previously paid to CART per the terms specified in the official organizer/promoter agreement."

I just don't see anything unreasonable about this comment or that it would put CART and ISC at odds for next years race.

[Liz]

Oh, okay -- in other words, this is more schadenfreude by the CART IS DEAD crowd.

Figures.

[corkholio]

I bet Monterey would be overjoyed to lose one of their biggest events of the year.

[Jay]

I have to say it is somewhat worrying though for the entire state of CART. Right now, CART as a company is months away from extinction - there's nothing left that can be done, and the company has acknowledged this. Hopefully the OWRS deal will go through, but it is contingent on certain financial conditions...still, I think most people think that will happen. Even if it doesn't, I'm fairly confident the same people that put the offer to buy the series up will be the first ones in line to buy up CART's assets while they're being liquidated, and basically start over from scratch.

[Liz]

We can't do anything about it at this point except pray, or if we are shareholders, make our voices heard at the appropriate time. No use fretting over what you cannot influence, much less change.

[indycool]

Neither OWRS nor CART shareholders have much to worry about this issue. About the only thing that's come of it is there's going to be a dispute over $2.5 million that ISC paid to CART and the disposition of that. It shouldn't affect the buyout.

ISC wanted to postpone. CART wanted to race despite 700,000 acres of the immediate area on fire, the only real bad thought of the deal. ISC was obliged by conditions to postpone and offered alternative dates. They didn't work for CART. CART offered alternative dates and Phoenix. They didn't work for ISC. ISC postponed anyway. CART put words in ISC's mouth and said ISC cancelled. It's probably in the lawyers' hands now, but I'd expect a quick settlement so the issue DOESN'T get in the way of the buyout.

[sgw2]

ISC has the edge because they can use the courts to delay a Sale and transfer to OWRS. They know it, and so does CART.

Probably arbitration would eventually give ISC only a portion of the $2.5M they paid CART, as CART no doubt incurred some expenses related to the event. But CART doesn't have the luxury of time to wait out legal action.

The result is CART will have to give back ISC much, if not nearly all (and certainly more than deserved), of the money ISC paid simple to get closure, and very soon. I'm sure the smarter minds in CART are already drafting a compromise settlement offer.

Unless somebody in CART HQ seriously brain farts, this will not be an issue to be concerned about.

[Flatspot]

Originally posted by sgw2
Unless somebody in CART HQ seriously brain farts, this will not be an issue to be concerned about.

As much as I like the series you have to admit that CART, as an organization, has exuded more cranial gas than just about any company I've ever witnessed.

Here's to the hope that they keep this one in check.

[indycool]

Well, ISC filed for declaratory relief yesterday.

http://cart.autoracingsport.com/2003..._isc_cart.html

With CART's financial situation and the proposed buyout, I imagine it's a legal move to escrow the money until a settlement can be reached. That's what happened with around $300,000 in dispute with Road America last January.

[rustyfan]

CART wouldn't be in this mess in the first place if they hadn't cancelled the race outright. I personally don't understand why they didn't look beyond simply Monday and Tuesday as alternative dates, but I guess they didn't want to push the banquet back

[indycool]

You're probably right, Rustyfan. With the proposed buyout going on, leaving the '03 season hanging on longer may have had an effect on judgment on this.

The ISC legal action asks for the $2.5 million minus mutually agreed reasonable expenses. CART has very few extraordinary expenses in this regard because it had to get back to LA anyway from Australia to disperse, the postponement occurred a day after they returned to LA, ISC postponed and CART canceled. I don't see much of that money staying in CART's coffers.

[dirtfan]

If it rains this weekend, NHRA is going to cancel the Finals, cuz the BANQUET is Monday. Guess black ties are more important than flame suits!
They're not going to give me my money back, either, but apply it to the Winternationals next Feb. Good thing I live close by.

[macdaddy]

Bringing up an old thread, because I didn't want to start a new one...

INDIANAPOLIS (AP) - CART released its 2004 schedule Thursday, and warned it could run out of money next month before shareholders consider a buyout offer to keep the series going.

The Champ car series also disclosed in a Securities and Exchange Commission filing Thursday that it was in default on some of its financial obligations.

CART said Thursday it was in default for some of its financial obligations, including a $473,000 payment that had been due Oct. 8.

The series also said it paid $1.7 million to former CEO Joseph Heitzler to settle litigation.

http://sports.yahoo.com/cart/news?sl...v=ap&type=lgns