Lance Armstrong was hit with a record breaking $10 million sanctions award by the arbitration panel hearing his dispute with Dallas-based SCA Promotions, Inc. According to the arbitrators' written ruling, the sanctions award punishes Armstrong for engaging in "an unparalleled pageant of international perjury, fraud and conspiracy." The $10 million award, which must be paid directly to SCA Promotions, is believed to be the largest award of sanctions assessed against an individual in American judicial history. The award was made public today when SCA Promotions filed a motion with a Dallas state district court to have the award confirmed into a judgment against Armstrong.
The arbitration panel issued the award after holding a multi-day evidentiary hearing during which Armstrong himself testified. During the hearing, the arbitrators considered whether Armstrong should be punished for his wrongful conduct in connection with his original dispute with SCA Promotions. That dispute, which took place in 2005, involved whether SCA Promotions owed Armstrong bonus payments after he had won a series of Tour de France races. Armstrong swore under oath on numerous occasions in that proceeding that he had never used performance-enhancing drugs during his career. Given that sworn testimony, SCA Promotions settled the matter for $7.5 million in 2006.
Armstrong later confessed in 2013 that he had cheated during every Tour de France race that he had won. He also acknowledged that he had committed perjury during his dispute with SCA Promotions. As a result, SCA re-convened the arbitration proceeding and sought to sanction Armstrong based on his prior wrongful conduct. After an evidentiary hearing, the arbitrators found that Armstrong had "used perjury and other wrongful conduct to secure millions of dollars of benefits" from SCA Promotions.
According to the arbitrators, Armstrong's wrongful conduct was not limited to perjury. In addition to committing "perjury on every issue" in the case, the arbitrators also found that Armstrong "intimidated and pressured other witnesses to lie" and even "used a false personal and emotional appeal to perpetuate" his lies. While Armstrong acknowledged during the hearing that he was untruthful about his prior cheating, the arbitrators found that he "expressed no remorse to the Panel for his wrongful conduct."
"We are very pleased with this result," said SCA's president and founder, Bob Hamman. "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 sanctions award is the latest chapter in SCA's long-running dispute with Armstrong. SCA's lawyer Jeff Tillotson, said "This record breaking award was justified given Armstrong's outrageous conduct." Perhaps most disturbing, noted Tillotson, is that "the panel of arbitrators determined that Armstrong 'continued to lie to the Panel throughout the final hearing even while admitting to prior falsehoods and other wrongful conduct.'"
SCA is asking the Texas court to turn the award into a final judgment against Armstrong so that it can collect the amount owed. SCA's dispute with Armstrong is not over. It has a currently pending lawsuit in Dallas state district court where it is pursuing additional claims against Lance Armstrong and Bill Stapleton.
For further enquiries, please contact Tanya Mathis at tanya.mathis@scapromo.com or call 214-860-3700.
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