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Court Denies 23XI Racing and Front Row Motorsports’ Request for Expedited Discovery in Antitrust Case Against NASCAR

Redação by Redação
October 31, 2024
in Motorsports
Reading Time: 2 mins read
0
Court Denies 23XI Racing and Front Row Motorsports’ Request for Expedited Discovery in Antitrust Case Against NASCAR

Sep 1, 2024; Darlington, South Carolina, USA; NASCAR Cup Series Team 23XI owner Michael Jordan watches a video board as NASCAR Cup Series driver Bubba Wallace (23) races during the Cook Out Southern 500 at Darlington Raceway. Mandatory Credit: Jasen Vinlove-USA TODAY Sports

In a legal setback, 23XI Racing and Front Row Motorsports had their request for expedited discovery denied by United States District Judge Frank D. Whitney. The teams, currently locked in an antitrust dispute with NASCAR, had filed a motion to gain immediate access to critical documents and internal communications related to the 2025 charter agreement and NASCAR’s exclusivity arrangements with racetracks, among other topics.

Filed earlier this month alongside a motion for a preliminary injunction, the teams sought discovery from NASCAR’s leadership, including CEO Jim France and key executives Lesa France Kennedy, Ben Kennedy, Steve O’Donnell, and Steve Phelps. The requested documents spanned eight years, covering NASCAR’s acquisition of the ARCA Menards Series and the negotiation process leading to NASCAR’s recent “take-it-or-leave-it” offer to teams.

In his ruling, Judge Whitney outlined the court’s rationale, citing concerns over the broad scope of the discovery request and its short, five-day deadline. The judge ruled that this demand would place an undue burden on NASCAR, contrary to the plaintiffs’ claims that the request was “narrowly tailored” and would impose a “minimal burden” on the defendants.

Judge Whitney’s ruling noted, “Plaintiffs seek all of this information within five days of a Court order granting their motion for expedited discovery … a timeframe that would put a significant burden on Defendants.”

Another critical factor in the decision was the lack of evidence showing that expedited discovery was essential to avoid irreparable harm to the plaintiffs. The court determined that the teams had not demonstrated an urgent need, as they acknowledged no immediate harm from a lack of expedited discovery. NASCAR further stated in its response that it had taken steps to preserve all relevant materials, under a litigation hold, thereby minimizing any potential risk of evidence loss.

The denial of the motion leaves the preliminary injunction as the next key step in the proceedings. The injunction, if granted, would allow 23XI Racing and Front Row Motorsports to continue operating as chartered teams in 2025 as the legal battle unfolds.

The preliminary injunction hearing is set for Monday, Nov. 4, with implications for NASCAR’s charter system and the teams’ place within it riding on the court’s decision.

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