Taylor Hooton Foundation > Hoot’s Corner > General > Lance Armstrong must pay $10M to SCA Promotions
February 16, 2015
Lance Armstrong must pay $10M to SCA Promotions
Lance Armstrong’s latest incident shouldn’t surprise anyone
Lance Armstrong has been ordered to pay $10 million to SCA Promotions, the sports insurance company that paid his bonuses for winning the Tour de France and then helped cause his epic fall from grace in 2012. In a 2-1 decision, an arbitration panel in Texas ruled against Armstrong after the company sued him for fraud in 2013. “We are very pleased with this result,” SCA’s president and founder Bob Hamman said in a statement. “It is hard to describe how much harm Lance Armstrong’s web of lies caused SCA but this is a good first start towards repairing that damage.” The company said the $10 million award is believed to be the largest award of sanctions assessed against an individual in American judicial history. In a court filing Monday, the company also said Armstrong already has indicated he would refuse to pay the $10 million. In order to collect payment, it asked a Texas court on Monday to turn the arbitration panel’s $10 million award into a final judgment. The panel’s ruling marks the latest setback for the disgraced cyclist, who has employed attorneys in three U.S. time zones and England to help fend off several lawsuits since his doping confession to Oprah Winfrey in January 2013. Among his biggest problems lately: — He’s still defending himself against the federal government in another fraud lawsuit that could cost him nearly $100 million. — In January, he was given two traffic tickets after allegedly hitting two parked carswith his vehicle and then letting his girlfriend take the blame for it to avoid making news. In 2013, he reached an undisclosed settlement with a Acceptance Insurance, which sued him for fraud and sought to recover $3 million in bonuses it paid him for winning the Tour de France from 1999 to 2001. In the SCA case, he was fighting a company that helped unmask the Armstrong legend along with the harsh lengths he would go to protect it. The dispute started in 2004, when Armstrong sued the company for breach of contract after the company withheld his bonus for winning the Tour de France.
“SCA’s failure to pay the final installment of its policy is a shameful and baseless breach of contract,” the ad said. The company put its reputation at risk for its stance but wouldn’t back down. It suspected Armstrong had cheated to win the race and didn’t want to pay him if he did. When the case went to arbitration in 2005, SCA Promotions attorney Jeffrey Tillotson famously asked Armstrong about banned drug use. Armstrong replied by lying about it under oath, saying he never did. “I race the bike straight up fair and square,” he testified during the same proceedings. Because of this denial and without convincing evidence at the time, SCA Promotions was forced to settle the case and pay $7.5 million in 2006. But its efforts weren’t in vain. During the arbitration proceedings, the company compiled evidence and testimony that was used against him six years later, in 2012, when the United States Anti-Doping Agency banned Armstrong for life and stripped him of all seven of his titles in the Tour de France from 1999 to 2005. To build its case against him, USADA compiled statements from other riders as witnesses, along with evidence from the SCA case of 2005-06. The SCA Promotions dossier included the testimony of former Armstrong teammate Frankie Andreu and his wife Betsy, who testified that during a hospital stay in Indiana in 1996, they had heard Armstrong admit to using banned drugs. In 2005, Tillotson asked him about this alleged incident – also under oath. “How could that have taken place if I’ve never taken performance-enhancing drugs?” Armstrong replied. http://www.wfaa.com/story/sports/cycling/tourdefrance/2015/02/16/lance-armstrong-sca-promotions-ruling/23496931/