Massa Lawsuit Case Advancements and Expectations

Felipe Massa has won a major preliminary battle in his high-profile lawsuit over the 2008 Formula 1 world championship. A UK High Court judge has ruled that the case against Formula One Management (FOM), the FIA, and former F1 boss Bernie Ecclestone can proceed to full trial.

–by Mark Cipolloni–

The Brazilian driver, who lost the 2008 title to Lewis Hamilton by a single point, is seeking around £64 million ($84m) in damages. He alleges that the defendants deliberately concealed Renault’s race-fixing scandal at the Singapore Grand Prix – where Nelson Piquet Jr. intentionally crashed to trigger a safety car that handed victory to teammate Fernando Alonso and severely hurt Massa’s race.

The “Crashgate” conspiracy only came to light in 2009, after the championship had been finalized. Massa claims the FIA and FOM knew about the fix during the 2008 season but chose to cover it up, costing him the drivers’ crown.

In October, the defendants tried to have the case thrown out on multiple grounds, including time limitations and lack of contractual duty to Massa personally. Justice Robert Jay rejected most of these arguments, ruling that Massa has a “real prospect of success” on key claims of unlawful conspiracy and inducement of breach.

However, the judge noted several of Massa’s claims are time-barred or fall under French law, and stressed that even if Massa wins, the court cannot rewrite the official 2008 results – only award financial compensation.

Massa celebrated the decision as “an extraordinary victory” and vowed to uncover all evidence at trial, including internal communications from 2008.

“This is an important day for justice and for everyone passionate about Formula 1,” Massa said. “The truth will prevail.”

“The Court acknowledged the strength of our case and did not allow the defendants to smother the truth about 2008. The deliberate crash cost me a world title, and the authorities at the time chose to cover up the facts instead of defending the integrity of the sport.

“They did everything they could to stop the lawsuit, but our fight is for justice, and today we took a decisive step. The truth will prevail at trial. We will investigate everything thoroughly. Every document, every communication, every piece of evidence revealing the conspiracy among the defendants will be presented.

“I am more determined and confident than ever! When the whole truth comes to light, justice will be served – for me, for Brazilians, for the tifosi, for all motorsport fans who deserve an honest sport, and for the very future of F1.”

Not so fast

In the judgment, the Court dismisses the following claims against the FIA:

1. Mr Massa’s breach of contract claim which was based on the allegation that the FIA’s failure to investigate the Crashgate incident in 2008 was a breach of its regulations. This was dismissed on the basis that there was no real prospect of success, and because it is statute barred.

2. Mr Massa’s tort claim against the FIA which was based on the same allegation as above, but asserting that this was also a breach of duty, was dismissed on the basis it was statute barred.

3. Mr Massa’s claim for declarations that (i) the FIA acted in breach of its own regulations in allegedly failing to investigate the circumstances of Crashgate promptly in 2008; and (ii) had the FIA not breached its regulations, Mr Massa would have won the F1 Drivers’ Championship in 2008. These claims were dismissed as there was no real prospect of such declarations being made by the Court.

The Court emphasised in its judgment “a number of obstacles” Mr Massa faces on causation (paras. 147-148) – in other words, obstacles in establishing that the alleged conspiracy was the cause of his alleged losses.

The Court also highlighted “serious doubts” about the breach of duty claim, which Mr Massa is directed either to abandon or support with a further French law expert opinion before the Court decides whether to grant permission for it to continue (such continuance only being relevant to the conspiracy claim, as the standalone tort claim is statute barred, as per 2 above) (para. 223).

The Court has otherwise permitted the unlawful means conspiracy claim against the three Defendants to proceed to a full trial, albeit on significantly narrowed grounds and subject to (i) reformulation of the claim by Mr Massa; (ii) the French law expert evidence mentioned above; and (iii) any applications for permission to appeal.

A full trial date has not yet been set. The case continues.