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Monday, June 24, 2024 | Back issues
Courthouse News Service Courthouse News Service

GM, Michelin Beat Back Competitor’s Claims

SHERMAN, Texas (CN) - A federal judge stripped away most claims alleged by a competitor of Michelin and General Motors that says the two plotted to sideline its racecar.

In a second-amended complaint, LG Motorsports accused GM and Michelin of conspiring to keep its Corvette out of the GT2 class of the Federation Internationale de L'Automobile racing series.

LG purchased a GT2 Corvette with GM's assurance that the vehicle would undergo complete homologation, a process of assembly that meets the guidelines of the series' governing body.

However, when GM decided in 2008 that it, too, would compete in the same class, the manufacturer thwarted LG's attempts to achieve homologation, according to the complaint. LG claims GM went even further by securing an agreement with Michelin to block LG from acquiring its racing tires.

Without the advantage of Michelin tires, LG says its driver quit the team and it suffered a loss of income.

"The gravamen of LG Motorsports' claim is that, because of the defendants' conduct, its car can't cross the finish line without a Michelin," U.S. Magistrate Judge Don Bush wrote in June.

Bush recommended granting GM's motion for summary judgment in a 14-page opinion.

The judge supported granting the same for Michelin with one exception: a new promissory estoppel claim based on information that came to light during a deposition.

U.S. District Judge Richard Schell adopted Bush's order on Monday and allowed the single claim to proceed.

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