Breach of Contract Lawsuit by Danica Patrick
In recent news of interest to breach of contract lawyers in Orlando Florida, Nascar driver Danica Patrick is involved in a breach of contract lawsuit filed by her racing team, Stewart-Haas Racing. Patrick’s team sued Nature’s Bakery for breach of contract damages of over $31 million, alleging that the bakery breached its contract to sponsor Patrick in at least 20 Nascar races this season.
Each driver in Nascar is expected to carry enough sponsors to make the season profitable for them. Nature’s Bakery notified Stewart-Haas on January 19, 2017 that Patrick was in breach of contract for allegedly promoting products that competed with the bakery’s products that Patrick was supposed to be promoting. Nature’s Bakery pointed to photographs on Instagram that it says highlighted the use of competing products in breach of the parties’ contract.
Stewart-Haas claims that Nature’s Bakery never had any complaints until it started to experience financial difficulties. Nature’s Bakery was obligated to pay Stewart-Haas about $15 million per year for three years, payable at the start of each Nascar season. It is a relatively small company compared to most Nascar sponsors, owned by a father and son management team. The racing team alleges Nature’s Bakery simply couldn’t afford the contract and improperly attempted to terminate it when Stewart-Haas did not want to re-negotiate the annual payment.
The Stewart-Haas versus Nature’s Bakery dispute illustrates an important concept for Orlando breach of contract lawyers: the importance of documenting the evidence of a business’s contractual relationships. Stewart-Haas gathered some favorable evidence through the bakery’s social media presence, and also documented the bakery’s attempt to re-negotiate the payments. Nature’s Bakery also gathered some social media evidence, but apparently could have done a better job documenting Patrick’s promotion of competing products.
If you have a question about your Orlando breach of contract dispute call a lawyer at the Spence Law Firm for a – FREE – initial consultation.