Texas Company Files Suit to Recover Bonus from Armstrong

A Texas promotions company that paid cycling champion Lance Armstrong bonus payments following his seven Tour de France wins has filed a breach of contract lawsuit in a Dallas district court against the now disgraced sports star. SCA promotions is seeking to recover more than $12 million the company paid to Armstrong in connection with several cycling wins. This case is especially interesting because SCA and Armstrong previously engaged in arbitral proceedings after the company refused to pay the cyclist a bonus for his 2004 win due to purported doping allegations. Following arbitration, SCA reportedly paid the cyclist a bonus and $7.5 million in attorney fees.

SCA Chief Executive Officer Bob Hamman said in light of Armstrong’s recent doping admission, the payments were unearned and improper. He also stated the promotion company’s position is supported by USADA sanctions imposed against Armstrong last summer that include “forfeiture of any medals, titles, winnings, finishes, points and prizes.” A spokesperson for Armstrong disagrees. He claims the case may not be reopened because the parties’ 2006 settlement includes a provision that states, “No party may challenge, appeal or attempt to set aside the arbitration award.”

Stay tuned to Disputing for updates regarding this lawsuit. You can also read more about the case on NPR.