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Court dismisses Lane's End stallion lawsuit


CALIFORNIAN owner and breeder Jerry Jamgotchian has lost his second federal court decision within days after Judge Jennifer B. Coffman of U.S. District Court for the Eastern District of Kentucky ruled in favour of Lane's End Stallions in a lawsuit regarding prominent stallion Lemon Drop Kid.

Jamgotchian filed a lawsuit through KNCInvestments on January 17 alleging that Lane's End, acting as syndicate manager of Lemon Drop Kid, had inappropriately handled the syndicated stallion.

In the action, KNC alleged "breaches of fiduciary duties" and sought a court order that required Lane's End to "segregate syndicate funds". KNC also sought an injunction to "stop Lane's End from commingling Lemon Drop Kid Syndicate funds with funds from other stallion syndicates it manages".

Judge Coffman dismissed the allegations that Lane's End breached its fiduciary duties because the issues were addressed in a previous suit between KNC Investments and Lane's End with the same outcome by the same court in November. 

The decision came seven days after Judge John A. Kronstadt, a US District Court Judge in California, upheld an international arbitrator's ruling that Jamgotchian is required to pay Coolmore approximately €310,000 in stud fees from 2007 and 2008.

Sam Sheppard, chief executive of the European Breeders' Fund, was appointed by the TBA as international arbitrator. Jamgotchian's arguments in the case included the assertion that appointing Sheppard as arbitrator presented a conflict of interest since Coolmore is a major contributor to the EBF.

 

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