- May 27, 2012
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MarkvW said:The arbitration and settlement agreement were not used to help falsely obtain Tour de France titles. SCA sued after the races were over and Lance claimed victory. The arbitration and settlement were over one thing: SCA's obligations pursuant to the original contract between SCA and Lance. Lance asserted that he had already performed his promise (he won the TdF) and that SCA needed to pay him the money promised in the contract. SCA claimed that Lance did not perform as he promised to perform (he did not really win, he doped) and that SCA was not obligated to pay the money. The arbitration was about resolving a contractual dispute between SCA and Lance.
That was SCA's argument in 2006 when they were FIRST litigating against Lance. That argument wasn't very attractive to SCA at that time, and rather than pushing it SCA entered into a second contract with Lance Armstrong.
That second contract contains a lot of promises that bind both Lance and SCA:
--It forever binds Lance and SCA (3.1(d)).
--SCA isn't relying on any of Lance's representations. In other words, they're not being defrauded here. This second agreement is an arm's-length transaction. (3.1(e)). And this language isn't just meaningless boilerplate. It's part of the bargain. (3.1(g)).
--The Arbitration Panel has exclusive jurisdiction over CONTINGENT PRIZE CONTRACT 31122. This means no lawsuits over contingent prize contract 31122. If a party wants to raise an issue over contingent prize contract 31122, then it must be brought back before the arbitration panel.
--SCA and Lance agreed upon an arbitration award of 7.5 million. (3.1(f)). This is the arbitration award that SCA now wants to undo. In other words SCA is now trying to undo an arbitration award that it specifically agreed to and directed in a contract.
--SCA and Lance also agreed that neither SCA nor Lance may later challenge, appeal, or attempt to set aside the arbitration award. (3.1(g)).
The complaint makes a very good argument as to why SCA was not obligated to pay money to Lance under the original contract. However, the complaint glosses over the second contract--the settlement agreement. Lance is going to have a very good argument that the first contract was superseded by the settlement agreement contract--and the arbitration agreement that resulted from that settlement agreement.
The next big show is going to be Lance squirming to avoid his deposition. A lot of the settlement agreement arguments are going to be trotted out in that skirmish. That skirmish ought to be resolved fairly soon. If SCA loses on the deposition issue, then their lawsuit is doomed. If SCA wins, then things are looking good for them.
And here is the reality that you cannot seem to see based on the putrid ball of nonsense above:
Question 1. In the original arbitration, was Lance believed to be the champion of the Tour de France?
Question 2. Is Lance Armstrong champion of the Tour de France in any year of our Lord?
Read the difference. Know the difference. Feel the difference.
One other thing, the settlement contains a standard, boilerplate integration language. Now, read the settlement agreement very carefully; then read the integration clause very carefully; then begin questioning whether your assessment of what "subject matter hereof" relates to. Because when you read the settlement agreement, and you read the complaint, then you have to start to question whether they "glossed over" it, or they just walked right around it. Because the one thing I don't see any language on in that settlement agreement is language that makes it inconsequential whether Mr. Armstrong is Tour de France champion or not. And don't even bother giving me any "well it was inherent" crap, because the law doesn't work that way and you know it. Words matter. Words have meaning. You find me the words that foreclose contractual obligations based on that set of facts. Because it isn't there.
Don't worry, you'll get the hang of this law thing sooner or later...