Here’s What Happened in the 23XI/FRM vs. NASCAR Lawsuit This Week (Nov. 1-7)

It was another busy week in the courtroom between 23XI/FRM and NASCAR. Here’s what’s new in the ongoing litigation.

• On Tuesday (Nov. 4), Judge Kenneth D Bell granted a summary judgment to the teams regarding the definition of “premier stock car racing” and NASCAR’s stranglehold on the market. The ruling will make the Dec. 1 trial focus on whether or not NASCAR unlawfully used its power in the stock car racing market.

• Both NASCAR and 23XI/FRM attorney Jeffrey Kessler issued statements following the ruling.

• “We are very pleased with the court’s decision today, ruling in our favor,” Kessler said. “Not only does it deny NASCAR’s motion for summary judgment, but it also grants our partial summary judgment motion, finding that NASCAR has monopoly power in a properly defined market. This means that the trial can now be focused on whether NASCAR has maintained that power through anticompetitive acts and used that power to harm teams. We’re prepared to present our case to the jury and are focusing on obtaining a verdict that benefits all of the teams, partners, drivers, and the fans.”

• “NASCAR looks forward to proving that it became the leading motorsports in the United States through hard work, risk-taking, and many significant investments over the past 77 years,” NASCAR said. “The antitrust laws encourage this — and NASCAR has done nothing anticompetitive in building this sport since 1948. While we respect the court’s decision, we believe it is legally flawed and we will address it at trial and in the Fourth Circuit if necessary. NASCAR believes in the charter system and will continue to defend it from 23XI and Front Row’s efforts to claim that the charter system itself is anticompetitive.”

• On Wednesday (Nov. 5), Judge Bell granted a motion put forth by 23XI and FRM to depose Rick Hendrick and Roger Penske before the Dec. 1 trial.

• On Thursday (Nov. 6), 23XI and FRM dropped a part of their claim against NASCAR. The teams elected to only focus on Section 2 of the Sherman Antitrust Act, rather than Sections 1 and 2. Section 2 focuses only using monopoly power illegally, which is what the teams accused NASCAR of doing.

• On Friday (Nov. 7), both Penske and Hendrick opposed being deposed in the case. Both team owners requested that certain parameters be set in regard to subject matter if they are required to be deposed.

• In a court filing, the following was stated: “Hendrick and Penske, in view of their decades-long relationship with Jim France, agreed to give limited testimony regarding non-confidential matters at the trial of this case, but in a way that did not force them to take sides in this lawsuit — something which both men have made clear that they cannot and will not do.”

• In total, over 80 items were submitted to the case in the last week.