no right click

Wednesday, April 25, 2012

XDC Lawsuit

While looking at the Wrecked Magazine site, I came across an article regarding a lawsuit between Englishtown and the eXtreme Drift Circuit.  It states that there are unpaid fees from XDC to Englishtown Raceway, but the official word about the lawsuit is a "disagreement in the contract" that is "financial in nature."


The issue stems from the March 2011 event when HIN and XDC where not a partnered entity.  It is stated in an article that the attendence of XDC suffered due to the HIN being three weeks prior and therefore they did not want to pay the fees.  A lawsuit was then filed with the New Jersey Courts and settled for $25,000.


XDC/HIN is also having other issues, as Efrain Olivares is stating he is also owed money as of April 13th and the Shift Communications Group is not longer doing PR materials for them. "I can't let people think at this point that I'm still involved," Olivares said. "You can lose your reputation very, very quickly here, and I don't want to do that. I've worked too hard to keep it where it is."


"I've been with XDC since day one, since the end of 2009," Olivares continued. "I helped out with the original announcements and put out all the XDC press releases. The first year was all good. I got paid on time, every time, and there was no haggling in year one. But in year two, I never got paid once on time and I still am owed money. When I brought it up to Mike last, he hid behind a new corporation and 'that wasn't this company, it was that company, and I've always taken care of you.' I just figured at a certain point that I wasn't going to get paid so I stopped worrying about it."


So far most drivers are declining to comment regarding allegations that they are not being paid by the series.  Will Parsons is one of the drivers that noted he had unpaid debts from XDC, but was able to work out an arrangement with the series regarding 2012 travel expenses.

Michael Collins is now stepping in for Brian Eggert as the event manager for XDC and things appear to be turning for the better for them.  Nate Hamilton is on record as stating the drivers were paid cash at the end of the event at Firebird Raceway.

Hopefully, this will continue to be the case and XDC/HIN will be able to polish their perceived reputation due to these claims and proceedings.