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Apr 5, 2001

AHRMA's $3-million Insurance Policy May Not Cover Individual Trustees If Acts Proven Intentional

AHRMA Trustees could be held personally responsible for any damages in the organization's legal battle with Rob Iannucci and Team Obsolete if their acts are proven at trial to be intentional.<BR><BR>According to legal sources who are familiar with AHRMA and who examined Iannucci's complaint, the AHRMA's $3-million Errors and Omissions Directors and Trustees insurance policy may not cover any damages found to be caused by intentional acts.<BR><BR>Furthermore, the sources said, under Ohio law, AHRMA members are entitled to sue individual Trustees to recover any legal fees spent on defense as a result of intentional acts on the part of the Trustees. AHRMA is incorporated in Ohio.<BR><BR>AHRMA Executive Director Jack Turner has not returned a Roadracing World phone call requesting comment.<BR><BR>In response to a Roadracing World inquiry, Iannucci FAXed a press release which quoted him as saying "We have great respect for the contributions to the sport made by AHRMA and the AMA. Unfortunately the behavior of some of their leaders has cast a dark cloud over the sport which we believe must be corrected. Many owner-members not associated with Team Obsolete have been tried in absentia or otherwise badly treated. Hundred of thousands of dollars of AHRMA's funds have been spent over the past several years on irrational and pointless litigation. We believe that AHRMA's Trustees should personally reimburse AHRMA's treasury for any and all funds that may have been wrongfully spent, and for all costs associated with this present litigation. We hope that this litigation will lead to an overall improvement in the state of Vintage motorcycle racing in the USA. We call for the immediate termination of (AHRMA lawyer Ted) Bendelow's employment, the recovery of the huge fees paid to him by AHRMA, and for the resignation or termination of Jeff Smith, Stickler, Chairman Fred Mork, and others who may have breached their duties to the AHRMA membership...Of course we are prepared to sit down with any untainted representatives of both organizations, including ad hoc groups, in a spirit of goodwill, to seek a rational resolution to this litigation, and to the unfortunate circumstances that made it necessary. We would also like to hear from any AHRMA Trustees named as individual defendants who are ready to come clean and fess up."<BR><BR>For more, see a related April 3 posting in the Breaking News Archives.