Former NASCAR team BK Racing is once again facing multimillion-dollar legal issues.
CHARLOTTE, N.C. β A federal appeals court has upheld a $2.5 million judgment against a former NASCAR team owner in a case involving the sale of a NASCAR Cup Series charter.
The ruling, issued Monday by the U.S. Court of Appeals for the Fourth Circuit, affirms that former BK Racing owner Ronald Devine and associate Michael DiSeveria must pay Front Row Motorsports (FRM) $2.5 million, including $2.1 million in settlement costs and nearly $400,000 in attorneys’ fees and legal expenses.
The case stems from a 2016 transaction in which FRM, owned by Bob Jenkins, purchased a NASCAR charter from BK Racing for $2 million. NASCAR’s charter system, introduced that year, guarantees race teams entry into Cup Series events and a share of the sport’s revenue.
According to court documents, BK Racing failed to disclose that a bank held a lien against the charter due to an outstanding loan exceeding $9 million. Front Row Motorsports discovered the lien after paying the first $1 million installment and subsequently required DiSeveria and Devine to sign an indemnity agreement before paying the remaining balance.
When the bank later sued to collect on its debt, FRM settled the claim for $2.1 million. DiSeveria and Devine refused to honor their indemnity obligations, prompting Front Row to file suit in 2022.
“The defendants employed various legal maneuvers to avoid their contractual obligations,” the appeals court noted in its opinion. “However, the evidence clearly established the validity of the indemnity agreement and the reasonableness of Front Row’s settlement with the bank.”
The Fourth Circuit rejected arguments that the indemnity agreement was invalid because a third BK Racing representative, Wayne Press, had refused to sign it. The court also dismissed claims that the agreement lacked proper consideration or violated public policy.
Monday’s court filing from the federal court featured references to the popular NASCAR-themed comedy movie Talladega Nights. Specifically, the filing referenced the “if you’re not first, you’re last” quote and noted BK Racing’s “‘shake and bake’ legal maneuvers.”
In June 2024, a federal court in Charlotte awarded FRM nearly $400,000 in attorneys’ fees and costs incurred while defending against the bank’s claims. This was in addition to the $2.1 million settlement amount.
This is not the first time that the former BK Racing owner has run into legal trouble. In January, the same federal appeals court upheld a $31 million fine against Devine for failing to comply with court orders in bankruptcy hearings. Devine also faces federal charges for failing to pay payroll taxes.
BK Racing competed in the NASCAR Cup Series from 2012 to 2018, fielding cars for several drivers, including current Hendrick Motorsports driver Alex Bowman. Corey LaJoie, J.J. Yeley, and Matt DiBenedetto also drove for the team. DiBenedetto scored BK Racing’s best finish, a sixth at Bristol in April 2016.
BK Racing eventually filed for bankruptcy in 2018, with its assets, including another charter, being sold at auction.
Front Row Motorsports has competed since 2004 and has climbed its way up the ladder to compete among the biggest teams in NASCAR. FRM has four wins in the NASCAR Cup Series, most recently at the Indianapolis road course with Michael McDowell in 2023. Noah Gragson, Todd Gilliland, and Zane Smith compete full-time for the team in the Cup Series. The team’s race shop is in Mooresville.
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