Chip Ganassi Racing Sues Alex Palou for Breach of contract.

The Chip Ganassi Racing (CGR) Alex Palou situation has taken another turn. The Indystar has reported that CGR has filed a suit against Alex Palou for breach of contract in Marion County Supreme Court.

Two weeks ago, Chip Ganassi Racing reported that they had resigned the 2021 IndyCar Champion to a new contract. Within a couple of hours of this being reported by Chip Ganassi Racing via social media, Palou announced on Twitter, "I did not approve that press release, and I did not author or approve that quote. As I have recently informed CGR, for personal reasons, I do not intend to continue with the team after 2022." ( Palou) Palou later stated that he was leaving Chip Ganassi Racing for Arrows McLaren at the end of the season. Palou along with new team Arrows McLaren have maintained that they have not done anything wrong and that there has been no breach of contract.

In the past two-week stretch, the animosity between the team and driver has been high. It has been previously reported by NBC sports that Palou no longer has access to crucial data at and away from the track. Even more worrisome, it was rumored that after seeing Palou's tweet, CGR may have contacted other drivers to take over for Palou at the Toronto Grand Prix just a few days after the dispute.

Court records show that Palou and ALPA Racing (Palou's racing entity) are listed as defendants. Palou was served summons at his residences in Spain and Indianapolis. Ganassi's lawyers have filed to seal the official complaint and four exhibits in the case. Lawyers for Chip Ganassi Racing have also filed an emergency motion for expedited discovery. Palou has announced that he plans to move to Arrows McLaren for the Sept. 11th race at Laguna Seca. This is believed to be why Ganassi has filed a prompt hearing motion on the preliminary injunction requesting that it is heard prior to the end of August.

Chip Ganassi Racing when reached for comment by Racer.com stated “Alex Palou is under contract with Chip Ganassi Racing through the end of the 2023 season. He is a valued member of our team, and we will continue to support him in chasing wins, podiums, and IndyCar championships. As the result of a competing racing team improperly attempting to contract with him notwithstanding the clear terms of our contract, we are proceeding to legal process pursuant to the contract.”

It is clear that both sides are not close to ending this dispute any time soon, all eyes will be on Palou as he competes for Ganassi this weekend in Indianapolis.

Jack Bradley is currently a Law school student at Duquesne Univesity School of Law and alum of Georgetown University (MPS) and Penn State University (BA). Jack is also the Co-founder and President of Poppy Packs a 501c3 charity and former Head of Marketing and Communications for Norm Benning Racing.

Sources

1. Palou, Alex (@AlexPalou) Twitter 12th July 2022 https://twitter.com/AlexPalou/status/1546996392912109568?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1546996392912109568%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fmotorsports.nbcsports.com%2F2022%2F07%2F12%2Falex-palou-mclaren-racing-chip-ganassi-f1-indycar-2023%2F

2. Brown, N. (2022, July 27). Chip Ganassi racing sues Alex Palou in Marion County Superior Court amid contract dispute. The Indianapolis Star. Retrieved July 27, 2022, from https://www.indystar.com/story/sports/motor/2022/07/27/indycar-chip-ganassi-racing-sues-alex-palou-amid-contract-dispute/65383813007/

3. Ryan, N. (2022, July 13). Alex Palou says he'll leave Ganassi for McLaren in 2023 - NBC Sports. MotorSportsTalk | NBC Sports. Retrieved July 27, 2022, from https://motorsports.nbcsports.com/2022/07/12/alex-palou-mclaren-racing-chip-ganassi-f1-indycar-2023/

4. Pruett, M. (2022, July 27). Ganassi team sues Palou. RACER. Retrieved July 27, 2022, from https://racer.com/2022/07/27/ganassi-team-sues-palou/