Published on November 27th, 2008 | by Michael J Smith0
HMS Holdings Suing DEI Over Engine Contract
HMS Holdings, operator of Hendrick Motorsports’ engine shop, is suing Dale Earnhardt Inc. for $1.5 million as a fee for terminating the agreement between the shop and Ginn Racing, which DEI acquired, to supply Hendrick engines to Ginn.
When DEI and Ginn merged in 2007, the team signed a termination agreement regarding the engine contract. That agreement required a payment of $1.75 million last year and $1.5 million this year. Thus far, the second payment has not been made.
The suit seeks the $1.5 million, 12 percent interest, and an additional $225,000.