Racing promoter counterclaims against government of Aruba: Breach of contract: Bad faith: Lost profits: Verdict

Law Reporter, Mar 2003

Aruba v. Sanchez, U.S. Dist. Ct., S.D. Fla., No. 01-830-- CIV, Aug. 9, 2002.

The government of Aruba solicited Sanchez, a prominent racetrack developer, to create and promote a motorsports complex on the island. Sanchez established two corporations to carry out the project, lent his name and reputation to secure approval from racing sanctioning organizations, and expended substantial time and expenses toward the development of the motorsports complex. The Aruban government issued a letter of intent saying it would guarantee the financial obligations of the corporation it created to operate the complex. After Sanchez worked on the complex for over a year, however, Aruba's finance minister imposed several new conditions on the financing guarantee-conditions that the minister had not mentioned at any time in the past. The complex was never completed.

The government of Aruba sued Sanchez, alleging fraud, breach of contract, and breach of the duties of good faith and fair dealing. Sanchez counterclaimed, alleging breach of contract and bad faith. Counterclaimant sought recovery of expenses and lost profits.

In a bench trial, the court found for counterclaimant, awarding lost profits totaling over $20.52 million.

Counterclaimant's Counsel

*Dean Colson,

Marc Cooper,

*Roberto Martinez,

Barbara A. Silverman, and

Susan Tarbe, all of Coral Gables, Fla.