Deja Two: Jamgotchian loses suit against Lane’s End Stallions
Litigious California Thoroughbred owner and breeder Jerry Jamgotchian lost his second federal court decision in less than a week when Judge Jennifer B. Coffman of U.S. District Court for the Eastern District of Kentucky ruled in favor of Lane’s End Stallions and dismissed Jamgotchian’s suit filed through KNC Investments alleging Lane’s End acted inappropriately in its handling of the syndicated stallion Lemon Drop Kid. KNC purchased the share shortly before filing the lawsuit.
The ruling, made on Thursday, granted summary judgment on behalf of Lane’s End Stallions, which asked the court to dismiss the suit. It also denied Jamgotchian and KNC’s motion for discovery, a central point of the suit against Lane’s End Stallion. Jamgotchian filed the suit after being denied access to a number of records requests.
This is the second time the federal court has rejected Jamgotchian/KNC’s action seeking declaratory judgment against Lane’s End Stallions. The previous ruling, in which the court interpreted portions of the syndicate agreement, found in favor of Lane’s End on all counts last November. Jamgotchian/KNC’s denied a motion to reconsider the judgment in February. The November 2011 decision against Jamgotchian/KNC has had been appealed.
The suit most recently rejected was filed by different counsel on behalf of Jamgotchian/KNC in Janaury 2012. It alleged breach of fiduciary duties by Lane’s End Stallions and sought a court order requiring Lane’s End to segregate syndicate funds and business dealings; and a requirement that Lane’s End cease commingling funds from the Lemon Drop Kid syndicate with funds from other stallion syndicates it manages.
On May 11, a federal judge in California ruled in favor of Coolmore Stud and a European arbitrator’s ruling that said Jamgotchian owed Coolmore about $400,000 in stud fees from several years ago.
To read the court ruling documents, click here.