F1

Circuit of the Americas looks to distance organization from Hellmund

Press Release

Austin, Texas (May 24, 2012)– The Circuit of The Americas today filed with the District Court of Travis County, Texas, an amended plea in abatement and motion to compel arbitration, and voluntarily agreed to have the temporary sealing order vacated in the current legal dispute with former Circuit principal Tavo Hellmund and his various entities.

Construction of the Circuit of the Americas in Austin, home of United States Grand Prix starting in 2012
Construction of the Circuit of the Americas in Austin, home of United States Grand Prix starting in 2012

Photo by: Circuit of the Americas

Information contained in the pleading will release to the public information that had been temporarily sealed by the Court until the presiding judge had the opportunity to rule on whether the dispute would be resolved through binding arbitration. As explained in the pleadings, and clearly stated in the Accelerator Holdings LLC partnership agreement signed by Circuit investors and Hellmund in December 2010, “any controversy, claim or dispute between or among the Company and any Member or among Members arising out of or relating to this Company Agreement or any other matters pertaining to the Company, shall be settled by binding arbitration.” Accelerator Holdings has a minority interest in Circuit of The Americas.

Circuit Chairman Robert Epstein reiterated the company’s desire to put an end to the dispute with Hellmund and Hellmund’s various entities through binding arbitration, as was agreed to in writing by Hellmund and all parties subject to the Accelerator Holdings company agreement. “Our intent from the beginning has been to resolve this matter efficiently through the agreed-upon binding arbitration process, and we feel that unsealing the court records moves us closer to this goal,” Epstein stated.

Circuit of The America’s attorney Michael Whellan noted that, “We believe the facts made public through today’s filing strongly support our position that Mr. Hellmund’s claims and accusations—and his misrepresentations to Circuit representatives and the public about his ability to assign Formula 1™ race contracts—only serve to undermine his case.

“We believe the tactics Mr. Hellmund and his legal team have employed to date are meant to purposely generate negative public sentiment about Circuit of The Americas in hopes of extracting a large settlement. Unfortunately, we do not expect these tactics to end anytime soon. Nonetheless, we are prepared to arbitrate this dispute as the parties have agreed to do in writing.”

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Series F1
Tags austin, f1, gp, hellmund, track

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