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Lance sues for bonus



 
 
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  #1  
Old September 16th 04, 12:13 PM
Gary
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Default Lance sues for bonus

From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

SCA Promotions Inc. said it has paid the $5 million into a custodial
account until it determines whether "new allegations" made against
Armstrong are true. "We're just asking the questions," SCA attorney John
Bandy said Wednesday.

Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County
state district court Tuesday seeking to make SCA pay up. As required in
its contract with SCA, they asked to send the claim to arbitration, and
Bandy said SCA supports that move.

Tailwind owns the U.S. Postal Service Pro Cycling Team and has Armstrong
as its leading member. In 2001, it promised Armstrong a series of
bonuses based on the number of consecutive Tour victories.

Before the 2001 Tour de France, Tailwind paid SCA a $420,000 insurance
premium to pay the bonuses if Armstrong earned them.

SCA paid a $1.5 million bonus in 2002 after Armstrong won his fourth
Tour, and another $3 million after he won again in in 2003. But SCA
withheld the $5 million bonus Armstrong was to receive after winning a
sixth straight Tour this summer.

Bandy said SCA learned of allegations in a newly published book, L.A.
Confidential: The Secrets of Lance Armstrong, that quoted a former team
employee saying Armstrong had used a banned blood booster and asked her
to dispose of bags of syringes.

"We believe the contract says we have to pay only if the event of a
valid claim," Mr. Bandy said.

In its suit, the plaintiffs said SCA has asked Armstrong and Tailwind to
provide all of Armstrong's medical records and other records. Bandy said
SCA will ask the arbitrator to order those records handed over.

The plaintiffs said SCA didn't have the right to question his Tour
victories, which were upheld by cycling authorities.
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  #2  
Old September 16th 04, 10:39 PM
Richard Adams
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Default

Gary wrote in message ...
From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

[snip]

In other news: Major insurance companies covering structures and
businesses in the path of Hurricane Ivan are insisting each claimant
submit both a blood and urine specimen to USADA and cleared before any
benefits will be paid out.
  #3  
Old September 16th 04, 11:28 PM
Sonarrat
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Default

Gary wrote in message ...
From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

SCA Promotions Inc. said it has paid the $5 million into a custodial
account until it determines whether "new allegations" made against
Armstrong are true. "We're just asking the questions," SCA attorney John
Bandy said Wednesday.

Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County
state district court Tuesday seeking to make SCA pay up. As required in
its contract with SCA, they asked to send the claim to arbitration, and
Bandy said SCA supports that move.

Tailwind owns the U.S. Postal Service Pro Cycling Team and has Armstrong
as its leading member. In 2001, it promised Armstrong a series of
bonuses based on the number of consecutive Tour victories.

Before the 2001 Tour de France, Tailwind paid SCA a $420,000 insurance
premium to pay the bonuses if Armstrong earned them.

SCA paid a $1.5 million bonus in 2002 after Armstrong won his fourth
Tour, and another $3 million after he won again in in 2003. But SCA
withheld the $5 million bonus Armstrong was to receive after winning a
sixth straight Tour this summer.

Bandy said SCA learned of allegations in a newly published book, L.A.
Confidential: The Secrets of Lance Armstrong, that quoted a former team
employee saying Armstrong had used a banned blood booster and asked her
to dispose of bags of syringes.

"We believe the contract says we have to pay only if the event of a
valid claim," Mr. Bandy said.

In its suit, the plaintiffs said SCA has asked Armstrong and Tailwind to
provide all of Armstrong's medical records and other records. Bandy said
SCA will ask the arbitrator to order those records handed over.

The plaintiffs said SCA didn't have the right to question his Tour
victories, which were upheld by cycling authorities.


snerk.

Sure, he's going to ride the Giro next year... suuuuuuure...
  #4  
Old September 16th 04, 11:44 PM
B. Lafferty
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Default


"Gary" wrote in message
...
From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

SCA Promotions Inc. said it has paid the $5 million into a custodial
account until it determines whether "new allegations" made against
Armstrong are true. "We're just asking the questions," SCA attorney John
Bandy said Wednesday.

Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County state
district court Tuesday seeking to make SCA pay up. As required in its
contract with SCA, they asked to send the claim to arbitration, and Bandy
said SCA supports that move.

Tailwind owns the U.S. Postal Service Pro Cycling Team and has Armstrong
as its leading member. In 2001, it promised Armstrong a series of bonuses
based on the number of consecutive Tour victories.

Before the 2001 Tour de France, Tailwind paid SCA a $420,000 insurance
premium to pay the bonuses if Armstrong earned them.

SCA paid a $1.5 million bonus in 2002 after Armstrong won his fourth Tour,
and another $3 million after he won again in in 2003. But SCA withheld the
$5 million bonus Armstrong was to receive after winning a sixth straight
Tour this summer.

Bandy said SCA learned of allegations in a newly published book, L.A.
Confidential: The Secrets of Lance Armstrong, that quoted a former team
employee saying Armstrong had used a banned blood booster and asked her to
dispose of bags of syringes.

"We believe the contract says we have to pay only if the event of a valid
claim," Mr. Bandy said.

In its suit, the plaintiffs said SCA has asked Armstrong and Tailwind to
provide all of Armstrong's medical records and other records. Bandy said
SCA will ask the arbitrator to order those records handed over.

The plaintiffs said SCA didn't have the right to question his Tour
victories, which were upheld by cycling authorities.


Interesting. According to Walsh and Ballester, one of the major sticking
points between Cofidis and Armstrong was that Armstrong refused to provide
any of his medical records to Cofidis. I'm curious to see how Armstrong's
attorney react to the demand for all medical records. Fun times ahead.


  #5  
Old September 17th 04, 02:02 AM
crit pro
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Default

A Texas arbitrator. Nothing a coupla signed books can't fix.

Lance will get paid.
  #6  
Old September 17th 04, 02:25 AM
B. Lafferty
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Default


"crit pro" wrote in message
m...
A Texas arbitrator. Nothing a coupla signed books can't fix.

Lance will get paid.


Most likely an arbitrator with the American Arbitration Association.
Interesting that after Armstrong allegedly threatens Prentiss Steffen with
being tied up in legal knots due to his wealth, Armstrong now faces an
insurance company with deep pockets that is not going to pay out $5 million
without an interesting discovery process first.

The first step will most likely be to ask the court to dismiss Armstrong's
action and compel the parties to proceed with arbitration. BTW, arbitration
is playing in the insurance company's ballpark. That's why they put
arbitration clauses in their policies. Also, there is generally no appeal
from an arbitrator's ruling. Also, if the arbitrator finds that Armstrong
has been using illegal substances over a period of years, look for the
insurance company to seek repayment of the monies they paid out in prior
years.

It is also unlikely that an arbitrator will see himself bound by res
judicata regarding any "decisions" by the UCI and/or WADA.

And if there is a finding against Armstrong, look for the matter to be
turned over to a DA for possible prosecution for insurance fraud dependent
on what evidence is taken at the arbitration hearing.

Interesting times ahead.



  #7  
Old September 17th 04, 05:09 AM
Isidor Gunsberg
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Posts: n/a
Default

Gary wrote in message ...
From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

SCA Promotions Inc. said it has paid the $5 million into a custodial
account until it determines whether "new allegations" made against
Armstrong are true. "We're just asking the questions," SCA attorney John
Bandy said Wednesday.

Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County
state district court Tuesday seeking to make SCA pay up. As required in
its contract with SCA, they asked to send the claim to arbitration, and
Bandy said SCA supports that move.

Tailwind owns the U.S. Postal Service Pro Cycling Team and has Armstrong
as its leading member. In 2001, it promised Armstrong a series of
bonuses based on the number of consecutive Tour victories.

Before the 2001 Tour de France, Tailwind paid SCA a $420,000 insurance
premium to pay the bonuses if Armstrong earned them.

SCA paid a $1.5 million bonus in 2002 after Armstrong won his fourth
Tour, and another $3 million after he won again in in 2003. But SCA
withheld the $5 million bonus Armstrong was to receive after winning a
sixth straight Tour this summer.



Insurance, what a scam! Hehe... I wonder who the actuary was for
SCA, who set the premium at only $420,000 I'm sure that Tailwind
could have procured similar "Insurance" from English bookmakers,
although I doubt that the odds against Armstrong success would have
been set so high (i.e. Tailwind would have had to pay a higher
"premium") One wonders if Tailwind is insured through the 2005 TdF.
Given the way that the payouts have escalated, it could be quite
interesting. Since Lance now has to pay alimony, and keep Cheryl Crow
in the manner to which she is accustomed, he may still be strongly
motivated by the prospect of winning millions more.


Bandy said SCA learned of allegations in a newly published book, L.A.
Confidential: The Secrets of Lance Armstrong, that quoted a former team
employee saying Armstrong had used a banned blood booster and asked her
to dispose of bags of syringes.

"We believe the contract says we have to pay only if the event of a
valid claim," Mr. Bandy said.

In its suit, the plaintiffs said SCA has asked Armstrong and Tailwind to
provide all of Armstrong's medical records and other records. Bandy said
SCA will ask the arbitrator to order those records handed over.

The plaintiffs said SCA didn't have the right to question his Tour
victories, which were upheld by cycling authorities.

  #8  
Old September 17th 04, 12:54 PM
kaiser
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Posts: n/a
Default

In other words:

"Check"

Your move Lance!

"B. Lafferty" wrote in message link.net...
"crit pro" wrote in message
m...
A Texas arbitrator. Nothing a coupla signed books can't fix.

Lance will get paid.


Most likely an arbitrator with the American Arbitration Association.
Interesting that after Armstrong allegedly threatens Prentiss Steffen with
being tied up in legal knots due to his wealth, Armstrong now faces an
insurance company with deep pockets that is not going to pay out $5 million
without an interesting discovery process first.

The first step will most likely be to ask the court to dismiss Armstrong's
action and compel the parties to proceed with arbitration. BTW, arbitration
is playing in the insurance company's ballpark. That's why they put
arbitration clauses in their policies. Also, there is generally no appeal
from an arbitrator's ruling. Also, if the arbitrator finds that Armstrong
has been using illegal substances over a period of years, look for the
insurance company to seek repayment of the monies they paid out in prior
years.

It is also unlikely that an arbitrator will see himself bound by res
judicata regarding any "decisions" by the UCI and/or WADA.

And if there is a finding against Armstrong, look for the matter to be
turned over to a DA for possible prosecution for insurance fraud dependent
on what evidence is taken at the arbitration hearing.

Interesting times ahead.

  #9  
Old September 17th 04, 03:33 PM
gym gravity
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Posts: n/a
Default

Isidor Gunsberg wrote:


Insurance, what a scam! Hehe... I wonder who the actuary was for
SCA, who set the premium at only $420,000 I'm sure that Tailwind
could have procured similar "Insurance" from English bookmakers,
although I doubt that the odds against Armstrong success would have
been set so high (i.e. Tailwind would have had to pay a higher
"premium") One wonders if Tailwind is insured through the 2005 TdF.
Given the way that the payouts have escalated, it could be quite
interesting. Since Lance now has to pay alimony, and keep Cheryl Crow
in the manner to which she is accustomed, he may still be strongly
motivated by the prospect of winning millions more.


Hey, Lafferty, what's the difference between this and gambling, anyway?
  #10  
Old September 17th 04, 08:41 PM
Stewart Fleming
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Posts: n/a
Default


Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County
state district court Tuesday seeking to make SCA pay up. As required in
its contract with SCA, they asked to send the claim to arbitration, and
Bandy said SCA supports that move.


Contract law is more powerful than anti-doping codes...
 




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