A Dallas-Based Sports Insurer is Suing Lance Armstrong for $12 Million Over Doping. For the Second Time.
So here's what happened. Dallas-based SCA Promotions, a sports insurer, paid Lance Armstrong a $12 million bonus for winning three Tour de France titles between 2002 and 2004. Tailwind Sports, which owned the U.S. Postal Service (Armstrong's) team, gave SCA Promotions $200,000 as insurance for the bonus. If Armstrong didn't win the races, SCA would keep the $200,000.
When rumors first started circulating in 2004 that Armstrong might be doping, SCA was convinced they were true, which turned out to be a good call. SCA took Armstrong to court and SCA attorney Jeff Tillotson repeatedly asked Armstrong if he doped, which he repeatedly denied and under oath. In 2006 the lawsuit was settled in Armstrong's favor.
Fast forward to 2013. Armstrong finally admits, to Oprah on national television, that he doped. To SCA, this is proof that it should get its $12 million back. Armstrong's reps say the 2006 settlement means he gets to keep the bonus money.
So, SCA is taking Armstrong to court for a second time.
In its new petition, filed today in Dallas County, SCA appears to hang its argument on two big representations from Armstrong:
First, that Mr. Armstrong had "never, ever" used performance enhancing drugs in his entire career, much less during the Tour de France races that SCA was paying him prize money for "winning." As Mr. Armstrong brazenly testified under oath in the SCA legal proceeding, "I race the bike straight up fair and square."
Second, Defendants assured SCA and the panel of arbitrators who were presiding over the SCA Armstrong legal dispute that if Mr. Armstrong had cheated and was subsequently stripped of Tour de France titles, he would be obligated to refund the prize money paid to him by SCA.
Given that Armstrong admitted that his racing was neither fair nor square and that he has been stripped of all seven Tour wins, those arguments seem pretty solid. But that's for the court to decide. In the meantime, you can read all 70 pages of SCA's complaint here.
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