09/16/2010 2:34PM

Restraining order favors Lane's End Stallions


LEXINGTON, Ky. – A Woodford County, Ky., Circuit Court judge has granted Lane’s End Stallions a temporary restraining order to prevent Ashley Andrews, a shareholder in classic winner and sire Lemon Drop Kid, and Robert Raphaelson, Andrews’s partner in a share of Kingmambo, from selling those shares to a group represented by California-based owner and breeder Jerry Jamgotchian.

Lane’s End filed a peition Sept. 15 against Andrews; Jamgotchian and KNC Investments, a group associated with him; and Nevada resident Raphaelson. According to the court documents, Lane’s End alleges that Jamgotchian, on behalf of KNC Investments, notified the stallions’ ownership syndicates that Andrews had accepted his offer to purchase a share in Lemon Drop Kid for $350,000, including commission, and that Andrews and Raphaelson, co-owners of a Kingmambo interest, had accepted his offer to purchase a share in that stallion for $175,000, including commission.

The Lane’s End filings allege Andrews and Raphaelson violated the terms of the stallions’ syndicate agreements by accepting the offers without offering a right of first refusal to other shareholders. They also allege Jamgotchian has violated Kentucky’s prohibition of undisclosed dual-agency, in which a person receives payment from both buyer and seller in a transaction without disclosing the situation to all parties, because the purchase offers “included payment of a commission to Jamgotchian as dual agent for both the purchaser, KNC Investments, and the seller.”

According to the Lane’s End petition, Andrews and Raphaelson declined to disclose terms of the sales, including the amount of Jamgotchian’s commission. Both cited a confidentiality agreement with Jamgotchian, according to Lane’s End’s peition.

“I am a little surprised that the Lane’s End syndicate manager is so focused on the agent’s commission which all parties to the offer are aware of and have consented to pursuant to KRS 230.357,” Jamgotchian wrote in an e-mail to Daily Racing Form on Thursday. “Agents serve a very important role in the horse racing industry, as well as to Lane’s End Farm, so I wonder why the Lane’s End syndicate manager is so concerned about this standard commission if the share has not yet been matched, especially since there is no requirement on anyone in the syndicate to match it.”

In a recent interview with Blood-Horse magazine, Lane’s End owner Will Farish suggested that Kingmambo is likely to be retired this year because of continued problems in the 20-year-old sire’s neck. Farish said Kingmambo covered only one mare in 2010, and she did not get in foal.