ALTERNATIVE DISPUTE RESOLUTION CELL

NATIONAL LAW UNIVERSITY JODHPUR

FIRST YEAR INTRA-BATCH ADR COMPETITION, 2019

PROPOSITION 1

Organized by:
Alternative Dispute Resolution Cell, National Law University, Jodhpur
adrintra.nluj@gmail.com
 GENERAL BACKGROUND INFORMATION

Santander Racing Ltd. (“Santander singlehandedly responsible for maintaining

Racing”) is an England-based automobile
racing company. It was listed on the London
Stock Exchange in 2010. The company was
formed as a subsidiary to compete in the
world's foremost premium car-racing
tournament – Formulae Tourismo
(“FT2”). Santander Ltd. (“Santander”), the
parent company of Santander Racing is a
global luxury brand and its name is associated
with expensive sports cars and grand tourers.
The FT2 season started three months ago
and six races have been completed. In a stark
turn of events, Santander Racing has not
been able to grab a single podium this season
and has had a driver retiring from every race
due to either engine failure or some
mechanical problems.
Santander Racing has won the title for three
consecutive years previously with their driver
Mr. Barry Block (“Block”) being crowned as
the World Champion for all three seasons.
With the recent losses, the press has been
questioning Block about the turbulent start
to the season but he has maintained that he
expects to overcome the hurdles by the next
race.
One reason for the success is the involved
and passionate management style
Santander Racing team’s manager Mr.
Richard Green (“Green”). He has been
the most efficient pit crew in the history of
FT2. The audience and fans love his persona
and involvement in the sport. He is a hard
taskmaster and wants the racers to always
train their hardest. Due to his success, the
2 company doesn’t interfere with his decisions
and lets him run the show.
Schloss Ltd. (“Schloss”) is a Germany-based
automobile brand. It was incorporated post
WWII in post-war Germany in the wake of
the re-development era of the country. The
company is one of the biggest automobile
manufacturers of the world. It is owned by
Mr. Mikkel Neilsen, a lifelong FT2 fan who
has been a racing driver in the past and was
known for his knowledge of engine
dynamics. He founded the company out of
his own winnings and still owns majority of
the shares of the company.
Schloss has been both a constructor as well
as engine-supplier to 2 teams in the league:
Santander Racing and another team called
Omega Pvt. Ltd. It prides itself on its state-
of-the-art engines. The designs of its engines
are patented and its performance is
exceptional. Its current deal with Santander
Racing runs for the next three years wherein
Santander has to pay them USD 80 million
of
per season for the engines.

© Alternative Dispute Resolution Cell.

Robin Shearer (“Shearer”) has been the terminating the engine supply agreement
manager of the Schloss team for a long time with Santander.
now. His methods were incredibly successful
Santander representatives and Mr. Nielsen
in the 2000s but recently, the team has not
have agreed to mediate their dispute to
been performing well and his crew members
amicably terminate the agreement. The
have often left citing differences with the
Broadcasters’ money has been heavily
administration.
invested for acquiring the television
The engine they supply to other teams has broadcast rights.
won the title for the last 3 years but
Considering the above factors and the fact
unfortunately, their team hasn’t even taken
that the Agreement of 2013 recommends for
the podium in any Grand Prix. The team has
teams to exercise professionalism in their
been in mid table wilderness for the last few
dealings, the FT2 group officials have asked
seasons now. The fans have been impatient
the teams settle this problem amicably and
and dissatisfied with the performance of the
make FT2 a commercial success.
team for a long time. Even after producing
engines of the finest quality the team has not .
been successful.

At a press conference, Green mocked

Schloss saying “We don’t like to lose . . .
unlike our engine suppliers.” He didn’t
realize that Shearer was standing behind him.
The situation escalated and Shearer punched
Green in his rage. As a result of this
controversy, the Board decided to sack
Shearer.

Mr. Nielsen recently held a press conference

wherein he has stated that Schloss will look
at the defects of their present model and that
their engine remains one of the best in the
league and that they hope to be a title
contender next season. Mr. Nielsen has
further increased the divide with Santander
Racing by stating that Schloss would prefer

© Alternative Dispute Resolution Cell.