Sara Lee Sued by Winston Team

Claims that $300,000 wrongfully withheld after driver's replacement

Richmond, Virginia, November 23, 2001 -- Winston Cup team owner Junie Donlavey has filed suit against Sara Lee, the parent company of the Donlavey’s team’s former sponsor Hills Brothers Coffee. Reportedly, the case alleges that Sara Lee wrongfully withheld $300,000 that is owed to the team, wrongfully terminated the contract and is not entitled to reimbursement of sums previously paid to Donlavey's team.

According to a report from the Richmond Times-Dispatch, the suit stems from an ongoing dispute about whether Donlavey had the right to replace Hut Stricklin, the driver for which Sara Lee reportedly bargained to sponsor. It notes that in a letter to Donlavey, Sara Lee argued that removing Stricklin from the team would "irreparably injure" the company that had spent "more than $6 million" building brand name recognition with Stricklin.

Sara Lee claims a different scenario. The Times-Dispatch report notes that in that letter, Sara Lee has demanded restitution of $138,888.89 for each of the five races in which driver Hut Stricklin was replaced by Dunlavey. The total contract for the team is $5 million this season.

Reportedly, Donlavey decided to replace the driver in an effort to lure a new sponsor for 2002. Rick Mast took over for Stricklin for an October 28 race at Phoenix, planning to run the final five races of the season with the team. Sara Lee had other ideas. The newspaper reports that Stricklin and sponsor Hills Brothers confirmed plans to move to another team next season. Currently, Stricklin is competing with his new Bill Davis Racing team and sponsor Sara Lee.

The report notes that Sara Lee demanded that all decals, logos branding and identifying markings be removed from the cars, uniforms, transporters, tool boxes and promotional materials related to the team. Dunlavey did comply with this request.

Donlavey's case is based on the sponsor contract between Hills Brothers and his team, Swansboro Motor Co. In that contract, amended and effective as of Feb. 22, it is stated that SMC furnishes "equipment, uniforms, services, parts, facilities, personnel, driver and any other support." The contract later states SMC should "control all ways, means and methods relating to its racing operation." The question is whether this language includes who are driving the cars.

Source: Richmond Times-Dispatch—Rea McLeroy

Matthew Roberts