Reading claimed their second Barclays Premiership win following Icelandic defender Ivar Ingimarsson's first half goal as Manchester City had another player sent off for a forearm smash in the 1-0 result.
It was not in the same class as Ben Thatcher's infamous attack on Portsmouth's Pedro Mendes just over two weeks ago but it was enough to seal a miserable night for City.
It happened 10 minutes from time and there was little referee Howard Webb - who booked four other City players - could do but to produce a straight red card.
Sidwell recovered and nearly scored in the last few minutes, as did striker Kevin Doyle who was denied at the death by last-gasp saves from keeper Nicky Weaver and centre-back Sylvain Distin.
But there had been a 60th-minute flare-up in the City dug-out when Pearce had to calm down Micah Richards who angrily threw his shirt down after being replaced by new signing Hatem Trabelsi.
City have won only one away game in 13 this year and scored only once this season - from a penalty against Arsenal. But this was newly-promoted Reading's 29th consecutive home game without defeat.
City had lots of possession and most of the ideas in the first half but could not turn their chances into goals.
Once the initial Reading rush was over with Leroy Lita scuffing a second-minute chance straight at Weaver and the goalkeeper coming confidently out under pressure to field Nicky Shorey's dangerous curled free-kick, City looked to take control.
Sinclair's shot was saved and then he and Richards combined sweetly in the 14th minute to set up Paul Dickov for what looked a certain strike.
The little Scot hit his shot from 15 yards with such a lack of conviction however that Marcus Hahnemann was allowed to gather it at the second attempt.
But when Reading - still without injured marksman Dave Kitson - went for goal they showed no such shyness.
Dickov and Sidwell had just had a dust-up when Distin floored Lita for a booking and a right wing free-kick which Bobby Convey drove into the area over Richard Dunne.
In came Ingimarsson ahead of Distin at the far post and his flicked header left Weaver no chance in the 24th minute.
Sinclair missed another opportunity to equalise for City when he dragged his shot wide after Bernardo Corradi headed down to him on the half hour.
But it needed an extraordinary save from Weaver to stop Ingimarsson adding a second goal with an angled drive, cutting in from the left.
After the break City kept trying to pass their way through and created some more likely openings but on the hour boss Pearce decided there had to be a new cutting edge and he sent on Georgios Samaras for Dickov and Trabelsi for Richards.
The full-back was clearly upset, flinging his shirt down as he came off into the dug-out and needing to be calmed down by his manager and team-mate Dickov.
Samaras made an instant impression, forcing a save from Hahnemann straight away and then hitting another drive that skipped off Ibrahima Sonko's heels to go behind for a corner.
But James Harper scared City with a smart break and shot which required another stylish stop from Weaver.
South Korea star Seol Ki-Hyeon, who had run his legs off for Reading but had missed a good chance to head their second goal when coming in late for a corner, was replaced to a standing ovation in the 78th minute by Brynjar Gunnarsson.
City then lost Dabo to the straight red card and then 10 men were twice nearly punished by a second goal on the breakaway as they pushed for an equaliser.
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