In court, Ed Carpenter Racing’s attempt to recover millions of dollars from a former sponsor has encountered yet another challenge. A recent decision by the Indiana Court of Appeals gave the IndyCar team a minor setback, but it kept the legal battle alive, leaving millions of dollars on the table.

FOX Sports reporter Bob Pockrass summarized the update on X.

“In Ed Carpenter-Todd Ault (Bitnile, askROI, etc) lawsuit for $8.4M of $10M 2024 sponsor deal, Indiana appeals court upheld dismissal but allows ECR to re-file to try to prove it has claim. Case simplified: ECR put logos on 2024 Indy cars but Ault/company never signed deal.”

At the center of the dispute is a sponsorship agreement that Ed Carpenter Racing believed was worth $10 million for the 2024 IndyCar season. The team claimed the money was supposed to be paid in 10 installments through November 2024. Ault-owned brands were heavily featured on the team’s Chevrolet-powered cars throughout the year. However, the contract was never legally signed.

ECR sued when the payments did not arrive, claiming they had provided the promised advertising. However, the appeals court upheld the original dismissal. The lack of a signed contract was the main reason for this decision.

“Neither contract is signed, but ECR argues that emails between the parties constitute offer and acceptance of the contracts. Plaintiff alleges three Counts: Count I, Breach of the Personal Guarantee by Defendant Ault; Count II, Breach of the Agreement by VF2; and Count III, Unjust Enrichment as an alternative claim against both Defendants,” the court said back then.

On June 29, the Indiana Court of Appeals upheld the dismissal of the lawsuit. The court ruled that ECR could not claim a breach of contract because no signed document existed.

Ault did not win the case entirely. The court ruled the lawsuit should not have been dismissed permanently. This allows Ed Carpenter Racing to sue again with a different legal argument. They can now seek payment for the advertising they provided instead of trying to prove a signed contract existed.

During the 2024 season, Ed Carpenter, Tony George, and Stuart Reed owned the team. They parted ways with Ault after that season ended. Businessman Ted Gelov joined the ownership group in late 2024. He replaced Ault’s funding with a new sponsorship from his company, Heartland Food Products Group.

For now, the appeals court ruling delays Ed Carpenter Racing’s pursuit of the disputed $8.4 million, but it does not end it. The team now has the opportunity to refile and continue its case.