DETROIT (November 30, 2001) - Championship Auto Racing Teams, Inc. (NYSE: MPH) was awarded $48 million in compensatory and consequential damages at a hearing in Oakland County (Mich.) Circuit Court for its breach-of-contract lawsuit against ISL Marketing AG.
The Swiss-based company had served as CART's exclusive worldwide marketing agent since 1998. ISL had the responsibility of seeking sponsorship for the open-wheel sanctioning body and was obligated by contract to guarantee a pre-determined amount of income to CART on an annual basis.
The lawsuit, filed in February and settled Wednesday, alleged that ISL failed to pay CART more than $6 million with respect to the 2000 guarantee. The complaint also stated that ISL did not fulfill its remaining commitment to the nine-year contract, which would have expired following 2006.
"We're pleased with the outcome, and believe this is one of the largest awards in Oakland County history," said Deborah Schneider, CART Senior Vice President of Legal Affairs. "ISL is currently being liquidated by the Swiss Bankruptcy Court, and we're hopeful that this judgment will put us in a more advantageous position in those proceedings."
Championship Auto Racing Teams, Inc. (NYSE: MPH) owns, operates and markets the FedEx Championship Series. Reigning two-time champion Gil de Ferran and former series champions Michael Andretti (1991) and Jimmy Vasser (1996) are among the stars who battle for the FedEx Championship Series title on ovals, temporary street circuits and permanent road courses. CART also owns and operates its top development series, the Toyota Atlantic Championship. Learn more about CART's open-wheel racing series at www.cart.com.