Judge to rule on partial dismissal 
of speedway suit

Lawyers representing Iowa Speedway company U.S. MotorSports Corporation and former speedway co-owners Manaco Corp. and Manatt’s met in court Friday in a hearing that will decide whether a portion of the contract violation lawsuit will be dismissed.

District Court Judge Darrell Goodhue heard arguments from the defense alleging that specific claims in the lawsuit against Manaco regarding abuse of an expired sponsorship agreements have no basis.

Goodhue rejected a motion by USMC to strike the attempted dismissal on grounds that it was filed past a court-imposed deadline. The defense attorney for Manaco and Manatt’s told the judge that he believes there to be past precedent to dismiss the case on grounds of overly extensive detail filed by USMC. He argued the Manaco and Manatt’s should not have been contractually obligated to disclose the expired sponsorship agreement.

USMC is alleging that certain intellectual properties now possessed by speedway owners Stan and Conrad Clement were used and abused by Manatt’s after the sale of the raceway. USMC charges that approximately $800,000 in benefits from a sponsorship agreement, which expired prior to the June 2011 purchase of the speedway, were unlawfully enjoyed after the sale was complete. The legal team for Manatt’s claimed Friday that the company did not need to contractually disclose the sponsorship agreement to the Clements because USMC administration knew of the agreement at the time of the purchase.

The judge wasn’t convinced what legal ground the defense would gain from the partial dismissal of the case, noting that the root issues in the case would stay intact, including damages sought and charges accrued by the Clements in researching the case amounting to $1.2 million.

A ruling is expected within the next few weeks, but the case will go forward regardless of the judge’s decision.

Mike Mendenhall can be contacted at (641) 792-3121 ext. 422 or via email at mmendenhall@newtondailynews.com.