Texaco sues Newman-Haas over Andretti loss.

Having proudly announced Cristiano da Matta in its second car last week, Newman-Haas Racing finds itself in hot water over the departure of the Brazilian's predecessor.

Primary sponsor Texaco has filed a lawsuit claiming that its involvement with the team was dependent on Michael Andretti staying put for the duration of his five-year contract, according to speedvision.com, and is now trying to opt out of the remaining payments in its agreement with the team. Andretti left Newman-Haas to join the Team Green-run Motorola-backed effort for 2001 after the former refused to pay the incremental bonus included in his long-term contract option.

The team insists that it is not liable, having signed da Matta to replace the American, but Texaco is not happy, claiming that the lawsuit was only issued after all attempts to find a peaceful settlement broke down.

Things could get worse for Newman-Haas, too, as co-sponsor K-Mart hinted that it may not continue with its backing after suffering operating losses this year.