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Danica Patrick's sponsor sued for breach of contract

NASCAR fans in Texas may be interested to learn that Stewart-Hass Racing is suing Nature's Bakery for breach of contract. According to SHR, Nature's Bakery pulled its sponsorship of racer Danica Patrick prematurely. Nature's Bakery previously signed a contract agreeing to sponsor Patrick for three complete racing seasons and pay Patrick $15.2 million for each season.

SHR sued Nature's Bakery in state court in North Carolina on Feb. 10. Prior to the legal action, Nature's Bakery had sent a letter stating that it was terminating its three-year endorsement deal after just one season because the company believed that Patrick had not lived up to her contractual obligations. Nature's Bakery said that Patrick violated the contract terms by endorsing a competitor, Six Star Pro Nutrition Protein Powder, and failing to provide sufficient endorsement of Nature's Bakery on social media.

SHR is pursuing $31.7 million in compensation from Nature's Bakery for the last two years of the contract and other fees. In 2016, Nature's Bakery sponsored Patrick for 28 races. This year, Nature's Bakery was scheduled to sponsor Patrick for a minimum of 25 races. SHR released a public statement about the contract disputes with Nature's Bakery, saying that though the situation was unfortunate, it would not impact SHR's on-track efforts.

Contract disputes can often be resolved in out-of-court negotiations. If two companies are able to reach a solution, both may save a lot of time and expense. These types of negotiations are often handled by attorneys.

Source: ABC News, "Stewart-Haas Racing sues Danica Patrick's sponsor for breach of contract," Bob Pockrass, Feb. 14, 2017

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