North Carolina Business Court witnesses contentious clash over alleged defiance of mediated resolution

In a virtual contempt hearing before North Carolina Business Court Judge Adam Conrad, Clint Morse, representing ITG Brands LLC, unveiled allegations against Will Spencer, the owner of a North Carolina museum devoted to the NASCAR Winston Cup. Morse accused Spencer of breaching a settlement agreement by persistently disparaging the tobacco giant on social media and in interviews, defying the terms reached in September.

NASCAR Museum Owner Still Bad-Mouthing ITG, Court Told: Alleged Breach of Agreement

Morse, from Brooks Pierce McLendon Humphrey & Leonard LLP, argued that Spencer's actions blatantly violated the mediated settlement, demanding a formal retraction for statements initially aired in a Facebook video repost and later reiterated in an interview with Hagerty Media. These statements, Morse contended, were derogatory towards ITG and contravened the settlement's terms.

"He knows what he's doing is not consistent with the mediated agreement, and he is doing it anyway," Morse asserted, characterizing Spencer's actions as willful defiance.

NASCAR Museum Owner Still Bad-Mouthing ITG, Court Told: Legal Battle Origins

The conflict traces back to a lawsuit filed by ITG in January 2023, alleging Spencer, along with his company JKS Motorsports Inc., and the Winston Cup Museum, refused to acknowledge ITG's rights to various Winston Cup artifacts, acquired through the acquisition of copyrights and trademarks from R.J. Reynolds Co. The lawsuit accused Spencer of misusing the artifacts and images for commercial gain, breaching the terms of an original agreement.

NASCAR Museum Owner Still Bad-Mouthing ITG, Court Told: Escalating Tensions

Morse detailed Spencer's alleged six-month campaign disparaging ITG in the media, accusing him of fabricating a "David versus Goliath" narrative. Spencer purportedly depicted himself as a victim while ITG battled health issues that delayed mediation. Morse labeled Spencer's narrative offensive and accused him of leveraging it to perpetuate falsehoods.

Violation Evidence

Morse highlighted instances allegedly breaching the settlement, including the reposting of a video disparaging ITG and remarks made in the Hagerty interview. Spencer's purported willingness to face jail time rather than cease his actions, according to Morse, demonstrated his deliberate defiance of the agreement.

Defense and Counterclaims

Josh Durham, representing Spencer, argued that his client promptly removed the video upon the contempt motion, emphasizing its original intent to promote the museum. Durham suggested that ITG's actions, including alleged false accusations and privacy breaches, provoked Spencer's statements.

Impending Decision

The court deliberated on potential remedies, with ITG advocating for a formal retraction, while Spencer's counsel contended that removal of the video sufficed. Judge Conrad expressed concern over the parties' return to court, urging reconciliation and voluntary resolution.

Looking Ahead

As the legal showdown between ITG and Spencer continues, tensions remain high, with both sides adamant in their positions. The case, ITG Brands LLC v. Spencer, promises further courtroom drama as it unfolds in the North Carolina Business Court.