Lexus’ 3GT Racing Team at Risk Over Lawsuit
U.S. Marshals Chasing Down $3 Mil Belonging to 3GT Racing’s Owner
Two of racing’s most recognized names are making headlines once again, but not necessarily for the right reasons. A more than 10-year-old lawsuit by current Indycar driver Ryan Hunter-Reay against Rocketsports’ Paul Gentilozzi has climaxed in a Grand Rapids, Michigan, federal court.
According to sources, the suit that initiated back in 2007 due to breach of contract and defamation has arrived to an unorthodox ruling in favor of the 2014 Indy 500 winner. The Michigan federal judge has awarded Hunter-Reay $2.7 million dollars, plus a total of $562,000 in interest that accrued due to Gentilozzi’s tactics to avoid payment on a previous ruling.
In 2009, a Michigan District Court had already awarded the now Andretti Autosport race car driver the base sum of $2.7 million, which proved extremely difficult to collect. The following six years were thwarted by shell games on behalf of Gentilozzi, as he dismantled his Rocketsports LLC by bankrupting the company and dispersing assets to his sons and immediate family.
Almost overnight, the same building, staff and assets once used by Rocketsports were being used under a brand-new name: RSR Racing. The “new” company operates in conjunction (and with the same ownership) as 3GT Racing. 3GT Racing currently fields two Lexus RC F GT3 race cars driven by GT racing legend Scott Pruett and Indy Lights champion Sage Karam.
“This has been going on since 2007, and it’s never something I wanted to be part of,” Hunter-Reay told Racer. “After a bunch of delays, we finally had a federal court rule in our favor. Contracts were breached, a campaign to disparage my reputation took place and the consequence was it cratered my career. The unfortunate thing is how long this has dragged on.”
Meanwhile, the other party isn’t too worried. “RSR Racing and Gentilozzi are disappointed with the result and are confident that the ruling will eventually be overturned. They have filed a motion with the court for a new trial and, if unsuccessful, are confident that an appeal of the decision will result in its reversal.”
It’s not only due to the underlying immoral qualities of Gentilozzi and his companies that the legal case is sending big messages into the legal world. The fact that the corporate veil has been pierced by the federal court sends a message that individuals hiding behind LLCs may still be personally liable for their business malpractices.
In this case, Hunter-Reay’s lawyers have targeted Gentilozzi personally, as well as his enterprises, in order to finally collect the amount from the previous ruling. According to the documents filed, all of the above parties will have their personal and business property and real estate seized as of February 15, 2017.
How this could affect the new Lexus racing outfit? Perhaps it’s too early to know, so stay tuned.
