FOR THE RECORD: DARLEY’S LAWSUITS OVERFLOWETH
By Ray Paulick
Wednesday’s Lexington Herald-Leader “For the Record” section includes a batch of lawsuits filed by Darley Stud Management LLC against a number of individuals or businesses for money claimed due on a contract: While it’s not that unusual to see a Thoroughbred farm, especially one that stands stallions, file suit against someone they’ve done business with, I don’t ever recall seeing so many suits reported at one time by one specific business. Darley is part of Sheikh Mohammed’s global Thoroughbred empire. The sheikh is also the ruler of Dubai, where Dubai World, a company formed by the emirate government and said to be controlled by Sheikh Mohammed, recently told lenders that it is not in position to stay current on $59 billion in debt to various creditors. The aggregate of the lawsuits filed by Darley Stud Management is less than $500,000.
Here is the list, as published in the Herald-Leader. A reminder that lawsuits are allegations representing one side of a dispute and there should be no presumption of guilt:
- Thomas Balak, for $48,400, etc.
- Karen Crouch for $27,200, etc.
- Jon and Danele Durham for $23,100, etc.
- Sarum LLC d/b/a Sarum Farm for $22,840, etc.
- Pamela Ridley for $20.175, etc.
- Owen Kiernan for $10,024, etc.
- William Sorokolit for $67,250, etc.
- Dare to Dream Farm LLC for $13,600, etc.
- Sue Dowling d/b/a Stoneview Farm for $15,900, etc.
- Brian Wallis d/b/a Dormello Stud for $54,400, etc.
- Hidden Lake Farm LLC for $13,450, etc.
- Joe Norton for $22,650, etc.
- Wade Sanderson for $53,166, etc.
- Diane Szymezak for $13,750, etc.
- Mike Maroney for $20,175, etc.
- Carl Vanburger for $20,400, etc.
- Denise Dommel for $20,400, etc.
Copyright © 2009, The Paulick Report
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Tags: Brian Wallis, Carl Vanburger, Danele Durham, Dare to Dream Farm, darley, darley stud, Darley Stud Management, Denise Dommel, Diane Szymezak, Dormelio Stud, Dubai World, Hidden Lake Farm, Joe Norton, Jon Durham, Karen Crouch, lexington herald-leader, Mike Maroney, Owen Kiernan, Pamela Ridley, Paulick Report, Ray Paulick, Sarum Farm, sheikh mohammed, Stoneview Farm, Sue Dowling, Thomas Balak, Wade Sanderson, William Sorokolit
December 9th, 2009 at 9:56 am
Good time to be an attorney in Lexington.
December 9th, 2009 at 11:06 am
Given the number of stallions that they stand that’s surprisingly few bad debts.
December 9th, 2009 at 11:39 am
I doubt very much that their debt recovery activities have anything to do with the financial issues in Dubai.
Allowing people to default on payments is not a good way to run a business, so why shouldn’t they chase them up? If these people are defaulting on their debts it is likely they owe other farms/businesses too.
December 9th, 2009 at 12:19 pm
Tough economic times bring out the worse in this industry. This industry has a propensity to bring out the highest level of scammers, incompetents and stupids based on business standards, integrity as a whole and the lack of national enforcement…scum just keep moving on.
The situation of warrants in debt is more a function of cash flow, poor legal standards and industry highs and lows shaking the cruds and incompetents out. Sad thing is, as with the Salahi’s that crashed the Prez’s India PM party (we, in this part of the horse world country knew they were deadbeats, PR whores long before the press picked up on it)…the legal system is not swift, nor providing to victims of same and the animals become the money roadkill. These scum know the game and how to play it. Too bad we don’t have a true, ugly debtor’s prison system akin to the Brits a la Dickens.. We need to find a way to get these cruds attention along with bopping those peddlers of unfair, loanshark practices.
December 9th, 2009 at 2:33 pm
Hold on, in case anyone noticed we are going through the worst recession since the great depression. There are some people on that list that I know, that are not scum bags or scammers or anything else worthy of any thing less than the legal process they are facing. And the reason we don’t have debtors prison is because the English tried that system for several centuries and not only was it an abject failure, it so disgusted the founding fathers that nothing like it has ever been part and parcel of our legal system. Like it or not, people in this country get a second and sometimes third chance. Some of these judgements will be collectable, most will not. As a former creditor’s attorney, one who has foreclosed on millions of dollars worth of real estate and construction projects, when you could not give the real estate away in Texas, many of the “scum” that owed millions to my clients, I found were good, well intentioned people who made honest (and sometimes not so honest) mistakes. They were afraid, remorseful and embarrassed. Clapping them in irons sounds like a lot of fun, but it doesn’t get me or my client paid. And by the way, at least one of the people on the list owes our farm as much or more money than Darley. But, its uncollectible. So get your judgments and move on. At least its not a bunch of condos in Florida.
December 9th, 2009 at 2:40 pm
If you can’t pay don’t play.
December 9th, 2009 at 3:19 pm
Zak, Since you claim to be an attorney in the eyes of the law what is it exactly called when a well intentioned person makes a not so honest mistake?
December 9th, 2009 at 4:13 pm
Zak:
So why do scum like Madoff (and others that I can name) continue to roll on for long periods of time? AIG? Lehman’s? Chrysler? On and on? The comment about debtors prison was bringing the argument to the extreme, because, sad to say these turds just keep on dropping and somehow, our society has found it acceptable to make excuses for these people via government and industry incompetence. They dump on the good economy and intentions of those they do business with BECAUSE THEY CAN and the system allows it. You failed to note my comments. I also said that people that subject poor or destructive lending practices on their borrowers are just as guilty; in some ways more.
Here’s a question: Why is Darley doing business with people that are now considered deadbeats? Answer: Either those persons overextended themselves (w/o checking by Darley) or they are scum (yeah, rough term). Aside from that, barring the fact that this has gone to court, what attempt have they made to make restitution in this the worst of times? Wouldn’t Darley try to work with them if some arrangement could be found? Is this an argument about services, broken contracts or failure to pay as required? How many live or pending lives depend on their fidelity for payment? IOW, what happens to the horses (which I’m sure the WID are based upon stud or boarding/medical services for same) of these maligned transactions? Look at the amounts for god sake!
BTW, we’re talking horses here, for racing no less…not a home, or a job or medical care.
We now live in a society that makes excuses or blames others for many of our countrymen’s mistakes (with a ton of assistance from corporate America) with the bulk of hard working people paying for the written off mortgages, credit cards, cars, delinquent kids, poor business and banking practices and taxed to death to boot without the write offs of Darley. Please Zak, you really can’t be serious.
December 9th, 2009 at 5:42 pm
These postings include distressing, ill-informed comments about the history of American bankruptcies and their consequences.
An intelligent look at - and a good basis on which to make sane, informed comments about - the issue can be found in Jill Lepore’s “I.O.U.,” article in the April 13th, 2009 issue of The New Yorker magazine.
Please keep in mind that an accusation does not constitute evidence of wrong-doing or guilt, and that statements or implications to that effect are reprehensible.
December 10th, 2009 at 4:50 am
Thank you for the sound critique. Me and my neighbor were just preparing to do some research about this. I am very happy to see such great information being shared freely out there.
December 10th, 2009 at 8:02 am
Don Reed:
You are correct…”Please keep in mind that an accusation does not constitute evidence of wrong-doing or guilt, …” and I asked what the conditions of the filings were about. These are not accusations; these are legal filings based on law, it’s interpretation and/or the apparent violation of it.
As to the Lepore article, it is not completely available on line without subscription to the NY. I did take the time to read the abstract. Good history lesson of which, I am very familar with.
Yes, I believe that “Acts of God” do play into financial loss. But I also believe that is what savings and insurance are for. The devil is in the details and I firmly believe that avarice, greed, personal gain and risk/asset mismangement play a larger role in the dilemma that becomes the inability to pay. Again, this is an unnecessary enterprise (racing, TBs) when considering what is to be the importance of life (food, shelter, etc). However, it is still a business and people should be required to make good on their debts. I realize that we are a country that forgives. That is a good thing. I just think it is taken to the extreme frequently and eventually at a cost to persons not remotely involved. Take a look at your credit card interest rate, for example. I pay my bills and use mine responsibly, but the company raised the rate regardless of the Fed rates, in anticipation of the CCA Congress passed and the need to profitize in the face of debts that are in default by many consumers….people that were encouraged to consume beyond reasonable ability to repay….living beyond their means without a strategic plan considering illness, job loss, etc
But there, for the Grace of God go I (or maybe, just maybe, I know my limitations).
December 10th, 2009 at 6:44 pm
The thing that has always amazed me regarding this business is the fact that ANYONE can submit a mare to a stallion, regardless of the stud fee (sometimes in excess of $100,000) and NOBODY QUESTIONS WHETHER THE PERSON HAS THE MEANS TO PAY IT!!!!
What other industry operates in such a “faith based” fashion? It’s really amazing, yet nobody ever discusses the lack of transparency or proof of funds.