Jerry Jamgotchian v. Kentucky Horse Racing Commission, et al., Civil Action No. 11-CI-01047 (Franklin Circuit Court)
SKO represented the Kentucky Horse Racing Commission in a dormant commerce clause challenge filed against it by a thoroughbred owner regarding an industry-standard regulation pertaining to the purchase of horses in claiming races. SKO successfully argued the case before the Kentucky Supreme Court and the Court ruled in the Commission’s favor in a unanimous published opinion.
SKO aided in the creation and formation of a non-profit Equine Tourism entity designed to garner tourism onto Central Kentucky horse farms and increase fan support and awareness in the sport of horse racing.
Reorganization of Equine Business, Insurance Trust and Gift Planning
Represented a husband and wife in planning and implementing the reorganization of a multi-million dollar equine business; in the preparation of multi-generation irrevocable trusts for each of the children and the gifting of interests in the equine business on a discounted basis to the trusts; in planning and implementing a multi-million dollar life insurance trust; and in preparing and implementing a beneficiary defective irrevocable dynasty trust.
Represented bank client in the documentation and negotiation of multiple secured credit facilities in excess of $20 million used to finance the obligors’ equine operations throughout the United States.
Constitutional Challenge to Racing Regulation
SKO represents a horse racing commission defending a lawsuit in which the plaintiff is challenging the validity of a racing regulation that places conditions on the racing of horses claimed at Kentucky race tracks. The plaintiff argues that the regulation violates the Commerce Clause of the United States Constitution. After both parties filed motions for summary judgment, the Franklin Circuit Court granted the motion of the commission, denied the motion of the Plaintiff and upheld the validity of the commission’s regulation. The time to appeal has not expired.
USEF Administrative Proceeding
SKO represented four American Saddlebred horse show officials in an administrative hearing conducted by the United States Equestrian Federation (USEF), the United States' governing body for equestrian sports. In the hearing, the owner of a fallen horse filed multiple charges against the show’s officials when his horse died after becoming excited and striking its head as medical crew were attempting to assist an injured rider at the show. The horse owner alleged that show officials violated several safety rules that contributed to the death of the horse. If the owner prevailed, officials would face suspensions, fines and the potential for additional civil litigation. The USEF found in favor of SKO’s clients on all charges and acknowledged that while the incident was tragic, SKO’s clients acted appropriately and complied with all applicable rules.
Breach of Fiduciary Duty Claim
SKO represented a client in a federal action in California involving claims of fraud and civil conspiracy in connection with a multi-million dollar equine transaction. SKO obtained a Rule 12 dismissal of the claims against its client, but the Court granted leave to amend. After amendment of the claims by the Plaintiff, SKO was successful in obtaining another dismissal, with prejudice.
Mergers & Acquisitions
SKO successfully represented a number of clients in the acquisition of thoroughbred farms and related membership interests, including verification of environmental data and private development rights.
Acquisitions & Syndications
SKO represented clients in the acquisition of significant breeding interests in five Thoroughbreds which became ranked among the 10 leading sires of 2011 as well as three of the past six winners of the Kentucky Derby. SKO continued to be active in the syndication of stallions rotating between hemispheres, including stallions rotating between Europe and Australasia, the United States and South America, and the United States and Australia, and the related tax issues involved.
Estate Planning & Administration
SKO administers the estates of notable horsewomen and horsemen and is actively involved in planning estates in the shifting economic climate.
Horse Farm Transactions
SKO has represented numerous domestic and international clients with the acquisition and disposition of premier horse farms and related properties throughout the United States.
SKO prepares, files and prosecutes trademark applications for clients in a variety of industries including distilled spirits, manufacturing, healthcare, equine, restaurants, and nonprofit organizations.
Enforcement of Prohibited Substance Regulations
SKO represented a horse racing commission in connection with proceedings imposing penalties against a Thoroughbred horse trainer and a veterinarian for the possession of prohibited substances, including cobra venom and Carbidopa/Levodopa, on the premises of a race track. The trainer was suspended one year for the cobra venom violation and served his suspension. The veterinarian was suspended for five years for the cobra venom and Carbidopa/Levodopa violations and appealed the suspension to the Franklin Circuit Court. The Franklin Circuit Court affirmed the four-year cobra venom suspension and reversed the one-year Carbidopa/Levodopa suspension. Both the veterinarian and the commission appealed the order to the Kentucky Court of Appeals which reversed the cobra venom suspension.
Sale of Racecourse Interest
Represented a racetrack association in the sale of a portion of its ownership interest. SKO handled all aspects of the transaction for our client and obtained approval by the governing horse racing commission for the sale.