Judge rules for Rahal in Sharp case

The team launched legal action against Sharp late last year, saying the American and sponsor Patron had broken a multi-year contract with them.

United States District Court Judge Hon. Adalberto Jordan this week issued a 24-page ruling, in which he said Sharp was found to have breached his contract.

The judge, however, denied a preliminary injunction against Sharp that would have forced the driver to sit out all of 2008.

Sharp is currently part of the Patron Racing team, who compete in the ALMS series.

"It seems to me that (Sharp) has knowingly breached one agreement in order to enter another," Judge Jordan said in his ruling, published by the team on their website.

"He may continue to race for Highcroft in the 2008 season, but this case shall go on, and he may pay for his choices in the end, quite literally, if a jury views the evidence as I do.

"According to the evidence presented so far, Rahal Letterman (Racing) has not committed fraud or breach of contract. If anything, it is the Sharp defendants who have breached and abandoned their contractual commitments.

"The record demonstrates that Rahal Letterman (Racing) did everything basically right and worked with the Sharp defendants at all times in good faith...Therefore the Sharp defendants have no excuse for violating the restrictive covenant in the Driver Agreement.

"For these reasons, I conclude that Rahal Letterman (Racing) will likely succeed on the merits of its breach of contract claim against the Sharp defendants."

Team co-owner Bobby Rahal welcomed the ruling.

"We are very encouraged with Judge Jordan's rulings and hope that the remainder of the legal proceedings go as indicated in today's statement," he said.

"The fact that Rahal Letterman Racing was found to be in accordance with all of its contracts and are forthright in all its dealings is a reflection on the people at our shop and on our team that worked so hard to provide a competitive car and a competitive atmosphere during last season."