Source: Lifetime may sue Lindsay Lohan for breach of contract

Lindsay Lohan’s courtroom style evolution

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LOS ANGELES – As if Lindsay Lohan doesn’t have enough drama in her life, an inside source has revealed to FOX411 that the troubled actress may have to contend with a breach of contract lawsuit from Lifetime.

We’re told that Lohan’s contract with Lifetime’s insurance company explicitly stipulated that not only was the film’s star prohibited from getting behind the wheel, but from riding in any other vehicle other than the one provided -- with a driver -- by Lifetime throughout the six week filming period.

That all fell apart in June when the actress' car slammed into the rear of an 18-wheeler on the Pacific Coast Highway, then told authorities that she wasn’t the one driving the rented Porsche. The cops don't buy it, and lying to police is a crime, a crime that could see Lohan’s probation stemming from a necklace theft last year, revoked.

“Naturally Lifetime did not want to make a big deal out of it until ‘Liz & Dick’ premiered as that would have been really bad for PR,” explained our source. “But Lohan’s team is already preparing for the fallout from a civil case against her. Lifetime is probably waiting to see whether or not the District Attorney’s office files a case against Lindsay for lying. If they do, it will make their suit more credible.”

We’re told Lifetime is currently talking to Lohan’s legal team in attempt to sort the issue out before it goes to court.

The DA’s office was not able to provide any information or comment on her lying to cops case, but we’re told that there’s a very high chance that the DA will proceed with it given that the related Lohan drama was so public, and it could make them look bad if they did not.

So what does Lohan’s future have in stall should that all go ahead and her probation be revoked?

“If Lindsay is charged with lying to police ... the judge will set a probation revocation hearing,” said Los Angeles-based attorney, Anahita Sedaghatfar. “During the hearing, the judge can decide to reinstate the terms of Lindsay's probation, modify the terms, or revoke her probation altogether and send her to jail. Clearly, Lindsay needs help. Perhaps jail time is what she needs to help her put her life back together.”

Regarding “Liz & Dick", which bowed Sunday night amid a storm of poor reviews, the negative response has seemingly spun the young actress into quite “a bad way.”

“She has been very upset, blaming ‘Lifetime’ and saying that the movie was poorly written etc. Typical Lindsay stuff,” continued the insider.

However, another source closely connected to Lohan insisted that she is in fact “very happy” with the Lifetime flick, and has always been thrilled to play her.

“She is not reading reviews, she was just really happy to play her and grateful for the role,” said the source.

And while Lohan, 26, may be down in the dumps and on the defense over the criticism regarding the much-hyped made-for-television movie, it didn’t fare too badly in the ratings department. The network reported that “Liz & Dick” drew in 3.5 million viewers, making it the fourth most-watched original movie premiere on the cable network for 2012, although it did fall significantly short of the year’s most-watched program – last month’s “Steel Magnolias” which averaged around 6.5 million viewers.

Lifetime and a legal rep for Lohan did not respond to a request for comment.

Danielle Jones-Wesley contributed to this report.