Formula One's governing body is planning legal action against eight teams threatening to break away from the league to form their own rival series next season.
On Friday, the FIA (F锟絛锟絩ation Internationale de l'Automobile) accused FOTA (Formula One Teams Association) of "serious violations of law" for its attempt to break away.
The FIA has been at odds with Ferrari, championship leader Brawn GP, and six other teams over its introduction of a voluntary budget cap for the 2010 season.
As a result, the FOTA said it has "no alternative other than to commence the preparation for a new Championship which reflects the values of its participants and partners."
In response, the FIA said Friday it was not releasing its final entry list for the 2010 season while it "asserts its legal rights."
"The FIA's lawyers have now examined the FOTA threat to begin a breakaway series," the organization said in a statement.
"The actions of FOTA as a whole, and Ferrari in particular, amount to serious violations of law including willful interference with contractual relations, direct breaches of Ferrari's legal obligations and a grave violation of competition law.
"The FIA will be issuing legal proceedings without delay."
McLaren, Renault, Toyota, BMW Sauber, Red Bull Racing and Toro Rosso are the six other teams involved in the breakaway.
Bernie Ecclestone, who owns F1's commercial rights, said Friday he didn't know whether FIA president Max Mosley would be able to hash out an agreement with the disgruntled teams.
"I think it's back to the future," Ecclestone said Friday after arriving at Silverstone, site of Sunday's British Grand Prix.
The FIA wants to impose a $74.5-million budget cap next season but the FOTA is against the constraints.
"The positions have hardened on both sides," Red Bull team principal Christian Horner said. "The teams feel they have gone as far as they can, the FIA feel they have gone as far as they can and we've ended up in a situation where a solution hasn't been found.
"We've no alternative because if we can't race in Formula One under the current rules, if you want to keep competing then you've got to look at something else."
Last year, the Canadian Grand Prix was dropped by F1 from its 2009 calendar and replaced with a race in Abu Dhabi after Ecclestone said Montreal has not paid its debts to Formula for the last three years.
On Friday, Montreal Mayor Gerald Tremblay spoke to reporters and was optimistic that F1 could return to the city.
"The mayor said that Bernie Ecclestone wants to have a North American date and so negotiations are ongoing," CTV Montreal's Rob Lurie reported Friday. "He was being very cautious but somewhat optimistic that the race could return next year."
With files from The Associated Press
