04/01/2002 12:00AM

Paulson suit goes to court


LEXINGTON, Ky. - The battle that erupted last August between Madeleine Paulson and Michael Paulson has moved into court in California. Madeleine Paulson was the wife of the late Allen E. Paulson and Michael Paulson is Allen Paulson's son from a previous marriage.

Madeleine Paulson - who campaigns horses, primarily in partnership, under the nom de course Action Racing - filed suit in January in California to have Michael Paulson removed as a co-trustee of the Allen E. Paulson Living Trust, which controls a number of horses that Allen and Madeleine Paulson bred or once raced.

The suit, filed in superior court in San Diego County, is the latest move in the case since last August, when Michael Paulson fired California-based trainer Simon Bray, who still trains for Madeleine Paulson and partners, and moved a number the trust's horses to Laura de Seroux's barn. Michael Paulson later moved Kentucky stallions Theatrical and Jade Hunter and 16 mares and foals from Diamond A Farm in Lexington to Hill 'n' Dale Farm, also in Lexington.

The suit alleges that Michael Paulson "has breached fiduciary duties" related to the trust and calls for him to be held responsible for any damages suffered by the trust as a result. Specifically with regard to the Paulson bloodstock, the suit alleges that Michael Paulson has failed to follow the trust's requirement to sell the trust's horses "promptly."