ChewbaccaD said:
Everyone needs to be clear here, the only relation the arbitration and settlement agreement play in SCA's complaint is that they were used to to help falsely obtain Tour de France titles.
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.
ChewbaccaD said:
To be a Tour de France winner, you must not just arrive in Paris with the lowest accumulated time. Most people think if a win as simply that. However, contractually, there are many more hurdles over which one has to or may have to surmount to be legally the winner. One of those is that you may not procure those wins through fraudulent means, one of those fraudulent means being doping. Once Armstrong's doping was exposed, he was given a legal process to defend against. He didn't because he knew he couldn't. Now, at this point, everyone thought he was "stripped" of his TdF titles, but legally, that is not what happened. Legally what happened was a recognition that he never actually won those titles. He wasn't a legitimate winner who was dispossessed of his title; he was never legitimately the winner.
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)).
ChewbaccaD said:
That is what this complaint is recognizing. Why people keep glossing over that is a mystery to me. All the arbitration and settlement did was add to the layers of fraud and deceit that kept everyone from seeing the truth, that truth being that Lance never won the Tour de France. Read the complaint in full. It's all there in black and white as they say.
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.