12/03/2008 12:00AM

Judge rules against Jackson

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The lawsuit filed by Stonestreet Stables owner Jess Jackson against Buckram Oak Holdings over Jackson's $17.5 million purchase of the Buckram Oak Farm has suffered a setback with a Fayette Circuit Court judge's ruling in favor of Buckram Oak to dismiss the case.

Jackson's attorneys are poised to appeal the ruling, which came down on Nov. 24 in Lexington, Ky., where the farm is located.

Jackson's suit claims that Buckram Oak conspired with Jackson's agents to inflate the farm's sale price from the previously advertised $15 million to $17.5 million. Jackson also alleged that, after the sale closed, Buckram Oak paid a $500,000 kickback to Jackson's agents despite a provision in the sale contract that prevented such payments.

The circuit court judge, James Ishmael, Jr., ruled in favor of Buckram Oak's motion to dismiss the allegations of breach of contract and fraud. In his ruling, Ishmael said that a provision in the sale contract that prohibited Buckram Oak from paying Jackson's agents was not designated to apply after Jackson closed on the farm.

Ishmael also ruled that Buckram Oak had no duty to disclose any previous offers to sell the property.

Richard Getty, an attorney for Jackson, expressed confidence the ruling would be overturned on appeal.