A three-judge panel from the Fourth Circuit of Appeals heard oral arguments on Friday morning over the preliminary injunction issued over the winter in the 23XI Racing and Front Row Motorsports v. NASCAR federal antitrust lawsuit.
This concerned the appeal made by NASCAR seeking to overturn the decision reached by the federal judge presiding over the lawsuit in the Western District of North Carolina to grant 23XI and Front Row charter team status through the duration of the lawsuit, despite being the only two teams (of 15) to not reach a charter extension agreement with the Sanctioning Body last summer.
Effectively, the judge presiding over the panel (Paul V. Niemeyer) challenge the lawyer representing the teams, Jeffrey Kessler, on their position, saying it was a ‘have your cake and eat it too’ scenario in suing over the charter agreement while also wanting to race as a chartered team.
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The lead lawyer representing NASCAR and chairman Jim France, Christopher Yates, had a relatively smooth 15 minute conversation with Niemeyer, who continues to make the case that the Sanctioning Body should not be legally bound into a contract with the teams that the latter refused to accept after two years of negotiating — that is only the parts found agreeable by 23XI and FRM.
…most of the pressure was put on the teams and lead attorney Jeffrey Kessler, as Judge Niemeyer really sought a good explanation for why the teams need charter status this season while also suing over elements of said agreement.
…“Let’s say it is (anticompetitive) then don’t enter into it,” Niemeyer said. “You don’t sit there and say ‘I want into that contract’ but also say ‘I want it modified to allow me to bring my antitrust claim.’ If you think the release excludes you from the opportunity, it’s a very difficult antitrust legal theory you have … in that you want to join the league but you don’t want to sign the mutual releases.
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The judge panel all encouraged both sides to take mandated mediation seriously, something both sides said they would do.
Kessler said that 23XI and Front Row was open to a settlement.
Read much more at Sporting News. (Really, just read it all, you will more educated because of it).