Nascar Lawsuit
Nascar Lawsuit
againstPLAINTIFF
DEMANDS A
TRIAL BY JURY
Plaintiff,
DIVERSITY
MOTORSPORTS
RACING,
LLC
(Diversity
-1-
3.
4.
6.
ISC is managed by James France, Chairman of the Board, and Lesa France
Brian France, James France, and Lesa France Kennedy are all descendants of
Bill France, Sr., the founder of NASCAR and ISC, and Bill France, Jr. (Brian France, James
France, and Lesa France Kennedy are hereinafter collectively referred to as the France
Family.)
10.
NASCAR and ISC are controlled by, and alter egos for, the France Family.
-2-
This Court has jurisdiction over the subject matter of, and the parties to, this
Venue is proper in the Southern District of New York County of New York
1981a(c).
FACTS
15.
16.
In the United States, NASCAR is the largest sanctioning body for motorcar
racing, one of the most viewed professional sports, earns the second-highest ratings of any
regular-season sport on television, broadcasts in over 150 countries, caters to 75 million
fans, and sells over $2 billion in licensed merchandise annually.
17.
the United States, Canada and Mexico and has exhibition races in Australia and Japan.
18.
19.
20.
In or about February 2016, the Charter Defendants entered into a nine (9)
Plaintiffs acknowledge that there are a small number of African Americans among NASCARs
employees.
-3-
21.
The Charter Agreement provides, inter alia, that each of the Charter
Defendants is guaranteed entry into the field of every Sprint Cup Series points race2.
22.
The Charter Agreement also provided for the creation of a Team Owners
Council, which will work closely with NASCAR on long-term governance issues and for the
sharing of revenues.
23.
24.
entertainment facilities . . . promotes more than 100 motorsport events . . . [and] owns and
operates Motor Racing Network, the nations largest independent sport radio network and
Americrown Service Corporation, a provider of catering services, food and beverage
concessions, and merchandise sales. 3
25.
26.
27.
From its founding in 1948 until the date of the Complaint, only three (3)
In 1963, Wendell Scott was the first African American race car driver to win a
NASCAR race: Willy T. Ribbs (three races in the 1980s) and Bill Lester (two races in 2006.).
31.
NASCAR listed 48 Sprint Series drivers on the 2016 list of drivers on its
-4-
32.
NASCAR listed 48 Xfinity Series4 drivers on the 2016 list of drivers on the
In or about 2015, the Obaika Racing Team, owned by a black Nigerian citizen,
None of the drivers racing for the Obaika Racing Team is African American.
36.
The 2010 US Census indicates that 14% of the US population is either black
alone (13%) or black in combination with one or more other races (1%).
37.
Zero percent (0%) of the 2016 NASCAR Sprint Cup drivers listed on the
NASCAR Website are black alone or black in combination with one or more other races.
39.
Zero percent (0%) of the 2016 NASCAR Xfinity Series drivers listed on the
Zero point zero two percent (0.02%) of the 2016 Xfinity Series drivers listed
on the NASCAR website (one driver) are black in combination with one or more other
races.
41.
In 2016, NASCARs top 13 drivers, all of whom are Caucasian, each earned
-5-
42.
Neither NASCAR nor the Charter Defendants or ISC has made any efforts to
Defendants outlining his plan for diversity initiatives that would enhance each teams
presence in the African-American community.
46.
interest in learning more about the Drive for Diversity program and his interest in
implementing diversity initiatives within NASCAR.
48.
After Cox presented his business plan to Jadotte, he was advised by Jadotte
that he start at the Go-Kart level and work his way up to the big cars and top racing levels,
after which NASCAR would agree to work with him.
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51.
Thereafter, in or about April 2009, Cox met with Don Towne (Towne), the
owner of the Pit Indoor Kart Racing, the largest indoor Go-Kart racing facility in the
country.
After explaining his business plan, Towne hired Cox as Director of Marketing
52.
for his facility.
53.
During the course of his affiliation with The Pit Indoor Kart Racing, Cox was
able to successfully engage the minority community and increase and diversify the sports
audience and participants.
54.
In or about May 2009, Cox launched the One Race, One World diversity
initiative through The Pit Indoor Kart Racing in collaboration with the Buck Baker Driving
School and Comedian Larry Veal of BeMORE Positive.
55.
The program, which debuted at Oprah Winfreys Boys & Girls Club in Jackson,
Mississippi, was designed to increase minority interest in and engagement with NASCAR
and nurture minority talent for future employment in the motorsports industry.
56.
In or about November 2010, Cox was approached by race driver Ricky Byers,
a Caucasian, and asked if Plaintiff would be willing to secure additional funding for his
Racing for A Cure program at the Automobile Racing Club of America (ARCA.).
57.
ARCA is a major stock car racing sanctioning body that competes on the same
tracks as NASCAR.
58.
In or about November 2010, Cox was able to increase stock car racer Ricky
Byers sponsorship by raising approximately $35,000 and adding the largest African
American Pentecostal faith organization, The Church of God in Christ, as a sponsor.
59.
Cox also gained experience by working directly with Ricky Byers racing team
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60.
In or about Fall 2010, as a result of his success with Go-Kart racing and ARCA
racing level, Cox was ready to ascend to the Nationwide Series, which, at the time, was
NASCARs second-tier racing series.
61.
Toward that end, Cox partnered with Bob Schacht, a 42-year veteran of
motorsports who had fielded racing teams in ARCA and NASCAR, and formed their
company, Diversity Motorsports Racing LLC.
62.
American racecar drivers and African-American racing teams in order to enable the
African-American drivers and racing teams the same opportunities and revenues that their
white counterparts enjoy from their association with NASCAR.
63.
From in or about 2009 until the date of the Complaint, Cox and Diversity
Motorsports have attempted to work with NASCAR to establish genuine racial diversity at
NASCAR by working with NASCAR to recruit African American drivers and by creating new
African American racing teams.
64.
alleging that NASCAR has its own diversity program, Drive for Diversity, which it created
in 2004.
65.
In addition, NASCAR has intentionally interfered with the efforts of Cox and
From in and after 2004 until the date of the Complaint, NASCARs alleged
Drive for Diversity program has recruited one driver for its Xfinity Series who is black in
combination with one or more other races and no African American drivers for its Sprint
Car Series.
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67.
In or about July 2011, Diversity Motorsports first race car (#19 Racing 4
Education owned by Tristar Motorsports and driven by Mike Bliss competed in the Subway
Firecracker 250, a then Nationwide Series event race, at Daytona International Speedway in
Daytona Beach, Florida.
68.
Diversity Motorsports intent to bridge the gap between NASCARs Drive for Diversity
program and true racial integration in the US motorsports industry.
69.
NASCARs Vice Chairman Mike Helton discussed Plaintiffs business plan with him, and
encouraged Plaintiff to speak to African-American Max Siegel, owner of Rev Racing and
business development strategist for Drive for Diversity.
70.
From in or about July 2011 through January 2012, Cox repeatedly called Mr.
intentionally and wrongfully denied the opportunity to participate in the Drive for
Diversity program.
72.
In or about July 2011, Cox and Diversity Motorsports launched the Racing 4
Education program, which was designed to sponsor and launch the future careers of
African American racing team owners and African American drivers, and to educate
minority youth.
73.
Diversity Motorsports CFO, Adrian Sinden and Account Representative David Shanks, and
Dr. Evelyn Bethune, CEO of the Mary McLeod Bethune Legacy Preservation Institute, met
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for a second time with Jadotte and Harris at NASCARs corporate headquarters in Daytona
Beach, Florida.
74.
progress and success, and advised Jadotte and Harris that Diversity Motorsports was ready
to go to the next level.
75.
Cox did not seek monetary support but simply asked that NASCAR publicly
what was needed to find sponsors for the Racing 4 Education program.
77.
78.
intentionally and wrongfully prevented from obtaining sponsorship for its programs.
79.
From in or about July 2011 through December 2015, Cox and Diversity
NASCAR refused to assist Cox and Diversity Motorsports and, as a result, Cox
and Diversity Motorsports was unable to generate the necessary corporate sponsorship.
81.
Motorsports car and driver, in association with Bob Schacht Motorsport, competed in
between 8 and 12 races annually in the ARCA racing series.
82.
In or about Fall 2011, Cox and Diversity Motorsports launched a Racing for
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83.
Staples, RBC Bank, and the William Morris Agency offered informal
In or about October 2011, Cox met with Jadotte a third time at NASCAR
During the course of this meeting, Cox not only discussed the progress, being
made by Diversity Motorsports but also informed Jadotte that Diversity Motorsports had
invested approximately $3.7 million creating a racing team.
88.
American driver Matt Murphy, in his first race at Ace Speedway in Altamahaw, North
Carolina, came from behind to win his stock car race.
89.
to refuse to assist Diversity Motorsports in obtaining corporate sponsors for Mr. Murphy.
91.
this program.
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93.
Harris admitted to African-American race driver Bobby Norfleet that NASCAR had stopped
spending time trying to engage with the African American community and was now
focusing on Hispanics.
94.
During the course of 2012 and 2013, Cox spoke to NASCAR twice concerning
Reach1Teach1.
95.
a $3.7 million agreement with former NFL player Clark Haggans (Haggans)6, an AfricanAmerican, for Haggans to own a NASCAR racing team.
97.
Diversity Motors.
99.
In or about April 2013, Haggans agent informed Cox that NASCAR had
dissuaded them from signing an agreement with Diversity Motorsports and encouraged
Haggans to associate with former NASCAR drivers Dale Earnhardt or Tony Stewart, both
Caucasians, instead.
100.
Diversity Motorsports.
101.
for The National Guard Youth Foundation (NGYF), a non-profit organization that provides
Haggans played in the NFL for the Pittsburg Steelers, Arizona Cardinals, and San Francisco 49ers from
2000 through 2012.
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In or about September 2014, Cox created a Race for the Challenge (R4TC)
Thereafter, Cox was informed that a NGYF Board member had contacted
NASCAR and was told it would not be viewed favorably by NASCAR for NGYF to work
with Cox and Diversity Motorsports.
105.
Reach1Teach1.
107.
Reach 1 Teach 1 program including Senior Vice President of Business Development Eric
Nyquist, a Caucasian, Senior Director of Growth Segment Marketing Pete Jung, an Asian,
Director of Green Initiative Catherine Kummer, a Caucasian, Vice President of Green
Innovation Michael Lynch, a Caucasian, and Business Development Group Administrative
Assistant Diana Milner, a Caucasian,
108.
On or about May 19, 2015, NASCARs Legal Department sent Cox and
Diversity Motorsports a letter declining their offer regarding Reach 1 Teach 1, and
directing Cox and Diversity Motorsports to cease all future communications with NASCAR,
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and informing them that all prior communications had been deleted from NASCARs
records.
109.
approached by Steve Harvey (Harvey), who proposed a racing team to be called Steve
Harvey Races 4 Education.
110.
NASCAR advised Harvey that it would not sanction any race team associated
denied the opportunity to create a Steve Harvey Races 4 Education racing team.
113.
Zachary Daniel requested that Cox and Diversity Motorsports refrain from any future
correspondence with NASCAR.
114.
NASCAR,
115.
116.
racing in the United States by joining an initiative with Ross Initiative in Sports (RISE).
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117.
On May 19, 2012, the New York Times published an article that stated that
Wendell Scott was the only [African-American] driver to win a NASCAR sanctioned race in
64 years and that only one (1) African-American driver had won a NASCAR sanctioned race
since 1986.
119.
The New York Times article also stated that . . . every American sport has
refusing to sanction African American owned racing teams for its various Cup Series.
121.
discrimination by refusing to hire African American Drivers for its racing teams.
122.
with NASCAR and the Charter Defendants in preventing African American racing teams and
drivers from appearing in motorsports events at tracks owned by ISC.
123.
At all relevant times, NASCAR and ISC knew, or should have known, that they
were sanctioning events held at ISC arenas (among others) and sanctioning the racing
teams that participate in these events, which events were intentionally racially
discriminatory.
124.
As a result of the foregoing, NASCAR and ISC have been complicit in, and
supportive of, the racially discriminatory environment that virtually excludes AfricanAmericans from meaningful participation in motorsports racing in the United States.
7
8
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125.
In 2016, motorsports remain the most racially segregated sport in the United
126.
States.
and ISC has been intentionally orchestrated by the France Family and the management of
ISC.
AS AND FOR A FIRST CAUSE OF ACTION
1981- RACE DISCRIMINATION (COX)
120.
Cox and Diversity Motorsports repeat and realleges each and every allegation
contained in paragraphs 1 through 126 inclusive, with the same force and effect as though
more fully set forth at length herein.
121.
have denied Cox the same rights to make and enforce contracts enjoyed by Caucasian
citizens employed by and/or associated with NASCAR, the Charter Defendants, and ISC,
including rights involving the making, performance, modification, and termination of
employment and marketing contracts with NASCAR, the Charter Defendants, and ISC, as
well as the enjoyment of all benefits, privileges, terms and conditions of such relationships,
in violation of 42 U.S.C. 1981.
122.
employed by NASCAR, the Charter Defendants, and ISC and has further been deprived of
the right to contract with Defendant NASCAR.
123.
and discriminatory treatment that any reasonable person would find offensive.
124.
and wrongful conduct, Cox has incurred physical and psychological trauma and injury, has
suffered great humiliation, loss of esteem, mental anguish, distress, shock, fright and
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suffering, has incurred significant economic loss, and has sustained lasting and permanent
damage.
125.
Charter Defendants, and ISC intentionally engaged in discriminatory practices with malice
or with reckless indifference to Coxs federally protected rights thereby entitling Plaintiff to
punitive damages.
126.
As a result of the actions of NASCAR, the Corporate Defendants, and ISC, Cox
was prevented from recognizing the profits earned by motorsports racing teams from
driver earnings, sponsorship, NASCAR's points-based pro-rata share of TV revenues, gate
revenues and merchandising.
127.
Cox and Diversity Motorsports repeat and realleges each and every allegation
contained in paragraphs 1 through 126 inclusive, with the same force and effect as though
more fully set forth at length herein.
129.
NASCAR, the Charter Defendants, and ISC have denied Diversity Motorsports the same
rights to make and enforce contracts enjoyed by White-owned businesses contracting with
and/or associated with Defendant, including rights involving the making, performance,
modification, and termination of employment and marketing contracts with Defendant, as
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well as the enjoyment of all benefits, privileges, terms and conditions of such relationships,
in violation of 42 U.S.C. 1981.
130.
NASCAR, the Charter Defendants, and ISC have refused to contract with Diversity
Motorsports, deprived Diversity Motorsports of the right to contract with NASCAR, the
Charter Defendants, and ISC have, and has further subjected the company to virulently
hostile and discriminatory treatment that any reasonable person would find offensive.
131.
Defendants, and ISC, Diversity Motorsports has incurred significant economic loss, and has
sustained lasting and permanent damage.
132.
Diversity Motorsports was prevented from recognizing the profits earned by motorsports
racing teams from driver earnings, sponsorship, NASCAR's points-based pro-rata share of
TV revenues, gate revenues and merchandising.
133.
Cox and Diversity Motorsports repeat and realleges each and every allegation
contained in paragraphs 1 through 126 inclusive, with the same force and effect as though
more fully set forth at length herein.
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135.
have denied Cox the same rights to make and enforce contracts enjoyed by Caucasian
citizens employed by and/or associated with NASCAR, including rights involving the
making, performance, modification, and termination of employment and marketing
contracts with NASCAR, as well as the enjoyment of all benefits, privileges, terms and
conditions of such relationships, as provided under New York State Human Rights Law
Executive Law Section 290 et seq.
136.
employed by NASCAR, the Charter Defendants, and ISC and has further been deprived of
the right to contract with NASCAR, the Charter Defendants, and ISC.
137.
and discriminatory treatment that any reasonable person would find offensive.
138.
intentional and wrongful conduct, Cox has incurred physical and psychological trauma and
injury, has suffered great humiliation, loss of esteem, mental anguish, distress, shock, fright
and suffering, has incurred significant economic loss, and has sustained lasting and
permanent damage.
139.
As a result of the actions of NASCAR, the Corporate Defendants, and ISC, Cox
was prevented from recognizing the profits earned by motorsports racing teams from
driver earnings, sponsorship, NASCAR's points-based pro-rata share of TV revenues, gate
revenues and merchandising.
140.
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Cox and Diversity Motorsports repeat and realleges each and every allegation
contained in paragraphs 1 through 126 inclusive, with the same force and effect as though
more fully set forth at length herein.
142.
NASCAR, the Charter Defendants, and ISC have denied Diversity Motorsports the same
rights to make and enforce contracts enjoyed by White-owned businesses contracting with
and/or associated with Defendant, including rights involving the making, performance,
modification, and termination of employment and marketing contracts with Defendant, as
well as the enjoyment of all benefits, privileges, terms and conditions of such relationships,
as provided under New York State Human Rights Law Executive Law Section 290 et seq.
143.
NASCAR, the Charter Defendants, and ISC have refused to contract with Diversity
Motorsports, deprived Diversity Motorsports of the right to contract with NASCAR, the
Charter Defendants, and ISC have, and has further subjected the company to virulently
hostile and discriminatory treatment that any reasonable person would find offensive.
144.
Defendants, and ISC, Diversity Motorsports has incurred significant economic loss, and has
sustained lasting and permanent damage.
145.
Charter Defendants, and ISC have intentionally engaged in discriminatory practices with
malice or with reckless indifference to the federally protected rights of Diversity
Motorsports, entitling Diversity Motorsports to punitive damages.
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146.
As a result of the actions of NASCAR, the Corporate Defendants, and ISC, Cox
was prevented from recognizing the profits earned by motorsports racing teams from
driver earnings, sponsorship, NASCAR's points-based pro-rata share of TV revenues, gate
revenues and merchandising.
147.
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(v)
ISC to take such immediate remedial actions as the Court deems necessary to fully integrate
the African-American community into their respective organizations;
(vi)
For such other and further relief as the Court deems just and proper.
By:
Ronald I. Paltrowitz (2746)
405 Lexington Avenue, 26th Floor
New York, New York 10174
Tel.: 917-822-2881
Fax: 203-730-2022
[email protected]
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Plaintiff,
-against-
COMPLAINT