HMS Holdings, which operates the Hendrick Motorsports engine shop, is suing Dale Earnhardt Inc. for $1.5 million for the payment of a termination fee stemming from a contract to supply Hendrick engines to Ginn Racing.
Ginn Racing, which also is a defendant in the suit filed Friday in North Carolina Superior Court, merged with DEI in July 2007.
As part of the merger, DEI and Ginn Racing signed a termination agreement to a contract that was originally signed by Ginn in 2006.
The termination agreement required payments to HMS of $1.754 million by July 31, 2007, and $1.5 million by Nov. 15, 2008, according to the suit.
The first payment was made on time. The second payment has not been made, according to the suit.
The original engine contract and termination agreement are not included in the suit, so it is unclear how much Ginn was paying to use Hendrick engines.
HMS is asking for the $1.5 million, 12 percent interest and an additional $225,000.
Hendrick Motorsports spokesman Jesse Essex said the company is looking forward to a swift resolution of the lawsuit. Dale Earnhardt Inc. Vice President John Story said the company has no comment.
http://www.scenedaily.com/news/articles/sprintcupseries/HMS_Holdings_sues_DEI.html
Check is probably in the mail. ;)
I imagine this will be only one of many breech of contract lawsuits before the end of next year.