One of the creditors in the Magna Entertainment bankruptcy, citing a Florida statute that deals specifically with suppliers of feed and bedding products to facilities where racehorses, polo ponies and racing greyhounds are stabled, has filed liens on hundreds of horses located at Magna's Palm Meadows training center in Florida.
Wood Mulch Products of Orlando, Fla., which supplies wood-chip bedding for Palm Meadows, had two checks from a Magna affiliate returned for non-sufficient funds, according to Brad Davis of the law firm of Davis & Kennedy, who is working on behalf of the creditor. Magna, which filed for Chapter 11 bankruptcy protection on March 5, allegedly owes Wood Mulch Products more than $250,000.
“There is a statute here in Florida, which I'm sure the bankruptcy lawyers will challenge, that provides that any vendor of feed and bedding materials to racehorses or polo horses or dogs that race is entitled to a lien on any animal that was present on the premises where the goods were delivered,” said Davis.
The statute, 713.66, can be viewed
“I don't think (the statute) has been challenged,” said Davis. “There are a few cases related to it.”
Davis said the liens would be valid even if the horses now stabled at Palm Meadows leave the state of Florida.
A lien gives a claimant the right to retain the lawful possession of the property of another until a legal duty such as payment for services or products is made.
Palm Meadows in Palm Beach County, about 45 miles north of Gulfstream Park, was built by Magna Entertainment at a cost of about $90 million. The facility is open from Nov. 1-May 1, with a $12 per day charge for each of the 1,440 stalls.
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