CAROL ROSE LAWSUIT AGAINST LORI AND PHILIP AARON & COUNTER SUIT
SALE OF CAROL ROSE HORSES AND PLANNED SALE OF RANCH IN QUESTION
By Glory Ann Kurtz
June 29, 2014
An Oct. 3, 2013 lawsuit by Carol Rose and Carol Rose, Inc.,, Gainesville, Texas, vs Lori and Philip Aaron and the Aaron Ranch, Commerce, Texas, started to play out in the 235th Judicial District
Carol Rose rides Lil Miss Shiney Chex at the 2010 AQHA World Championship Show. The mare is the broodmare Carol planned to keep out of her August dispersal sale. (AQHA Journal photo)
Court in Cooke County, Gainesville, Texas, and provided those in the Western performance horse industry fodder for gossip.
Rose is the AQHA All-Time Leading Breeder of Performance Horses and the owner of a 253-acre showplace horse ranch just off of Highway 35. Since 1984, Rose had managed the horse training, breeding and boarding business. She owned a famous palomino stallion named Shining Spark, currently sterile, but she bred him to performance horses, with his offspring and grandbabies winning national honors in cow horse and reining competitions for herself and others, all the while, she was selling them at six-figure prices.
Carol had been married to the legendary Matlock Rose, a legend in the cutting horse industry as a trainer, breeder, teacher and judge, who passed away on Jan. 5, 2008. In 2013, she decided to lessen her involvement in the equine industry by having a sale of her horses, and possibly leasing or selling her ranch.
Lori and Philip Aaron of the Aaron Ranch, Commerce, Texas, who were one of the largest landowners in Hunt County, Texas, have been in the cattle business for decades, as well as breeding and raising working cow horses. They had an affinity for “horses of color,” namely blue and red roans, and were breeding, raising and training ranch-type horses of Blue Valentine bloodlines.
In June 2013, Rose was introduced to the Aarons who expressed an interest in becoming involved with Western performance horses, and started negotiations regarding a lease of Rose’s property, purchase of certain horses and even an agreement for Rose to provide consulting services to them, as they had limited experience in conducting a performance horse business.
A lease with a purchase option for the ranch was written up and they also had an agreement to purchase certain horses at Rose’s Dispersal Sale that was held on Aug. 16, where the Aarons purchased approximately 48 head of horses for close to $5.2 million, according to results provided by Rose and published by Quarter Horse News.
The sale featured 141 horses with 137 marked as sold. They netted $7,416,750, averaged $54,137 and held a $25,000 median (halfway between the highest- and lowest-selling horse. The Aarons had purchased 48 or 35 percent of all the horses sold, including the high-selling horse A Shiner Named Sioux, that sold for a reported $850,000 to the Aarons. They purchased the first through fourth high-selling horses, in fact, by day’s end, they had purchased 26 of the top 30-selling horses in the sale.
However, according to court documents, and as often happens in sales, most of the horses the Aarons purchased and the prices they brought were agreed on prior to the sale. However, 10 of the horses that were purchased for a total of $935,555 were not paid for when the sale was over. And that’s when a major dispute began, including Rose’s ranch, her trainer Jay McLaughlin and the horses sold.
Rather than writing a lengthy article regarding the ins and outs of the lawsuits, I have chosen to publish several of the actual court documents that I thought summarized the lawsuit, ranging from 1) Rose’s Original Petition, 2) the Aaron’s Counter Claim, 3) Rose’s Protective Order, 4) Rose’s Answer to Counter Claim, 5) the Court’s Temporary Injunction, and 6) a Memorandum and Judgment where the Court granted Rose’s Motion to Dismiss her Appeal. That way, you, as a reader, can make your own decisions.
The next step: A hearing set for July 24 at 11 a.m. in the Cooke County Courthouse in Gainesville, Texas.
Click for 1) Rose’s Original Petition>>
Click for 2) Aaron’s Counter Claim>>
Click for 3) Rose’s Protective Order>>
Click for Plaintiffs Second Amended Petition>>
Click for 5) Court’s Temporary Injunction>>
Click for 6) Memorandum & Judgment for Rose’s Motion to Dismiss her Appeal>>
FROM THE EDITOR
HOW CAN THE AQHA VIOLATE THEIR OWN
RULE BOOK WHILE USING IT AS A LEGAL DEFENSE?
By Glory Ann Kurtz
re-edited from May 23, 2014
May 24, 2014
Just when you think you have heard the most outstanding and unprecedented display of unimaginable thought processes from the AQHA Powers-That-Be, another one comes out that tops the chart of the RIDIQUI-LIST!!
In the latest release from the AQHA, “the Good Ole Boys” in Amarillo, Texas, have concocted a plan for AQHA members to buy their way to the AQHA World Show by purchasing a horse from the AQHA World Show Sale.
This ingenious plan simply involves purchasing a horse at the AQHA World Show Sale, paying an additional $1,000 to AQHA and the horse is automatically qualified to participate in one of the next year’s AQHA World Shows without qualifying by traditional showing methods.
If they want to show in more than one World Show with the purchased horse (Zoetis Versatility Ranch Horse, Adequan Select, Built Ford Tough AQHYA and AQHA world championship shows) the year following the sale, without having to qualify for the respective show, an additional $1,000 must be paid by the entry deadline for the respective show for each class the horse did not qualify for with points. The $1,000 must be paid in addition to standard World Show entry fees.
The horse can even be transferred to another owner (although not back to the original seller at the AQHA World Show Sale or any of his or her immediate family).
I wonder if the individual or individuals responsible for this plan have ever read or heard of the AQHA Official Handbook of Rules and Regulations, which specifies the exact manner an individual and horse must abide by in order to be eligible to participate in the AQHA world shows.
On page 269 of the 2013 AQHA Official Handbook, it says, “Held in November, the AQHA World Championship Show is the pinnacle event for American Quarter Horse amateur and open exhibitors around the world, who must qualify for the event by earning a predetermined number of points to compete in each of the classes representing halter, English and Western disciplines. The AQHA World Championship Show is the largest single-breed championship show anywhere, offering nearly 100 classes of competition. Specific rules can be found at aqha.com.”
I also wonder if the Powers-That-Be realize that by this latest concoction, it establishes a set precedent on Rule Book enforcement of rule violators. How could the AQHA expect to suspend or punish a rule violator when they themselves are violating the very same set of rules and regulations that they designed and adopted to govern the association? Could this be another trip down memory lane for the AQHA – just like when Kay Floyd et al initially sued them for unfairness? Could this result in a legal challenge in the future?
Perhaps “Buying Your Way to the World Show” is a way to replenish the $22 million in revenue and over 38 percent loss in assets over the last five years, taken from IRS 990 filings that are available on Guidestar.gov, as well as information presented at the recent AQHA Convention. During that time, membership revenue also dropped drastically, due to a drop in the number of members: from 312,046 members in 2009 down to the 270,713 reported at the Convention. That’s down 23.4 percent or 82,894 members from the Association’s all-time high of 353,607 reported in 2004.
Instead of replenishing these lost funds by traditional business practices such as reducing overhead and spending, or downsizing, as a prudent company or organization would do, they simply devise another plan, which in my opinion, is nothing more than a complete and utter violation of the AQHA Rule Book. This is the same Rule Book that has withstood the test of time to run the organization and establish fairness for everyone involved with AQHA and the AQHA World Championship Show Qualification process … as well as several lawsuits.
In fact, this is the same Rule Book the organization is currently relying on as its defense and to see it through their latest legal woes in Federal Court: the cloning law suit appeal, which is a result of them being found guilty of Federal Anti-Trust law violations.
On one hand, AQHA is relying on these established rules and regulations as their legal defense but on the other hand, they are ready to throw the Rule Book out the window in an attempt to bolster World Show Sale revenue.
I wonder if it ever occurred to the Powers-That-Be that in their attempt to bolster AQHA World Show Sales or replenish the lost well of revenue, if this might be construed by the general membership and legal precedents as discrimination – a violation of Texas Nonprofit Law and unfair business practices.
Another casualty of the “Buying-Your-Way-To-The-World-Show” idea could be the hard-working and money-strapped AQHA affiliates who produce shows that contestants previously had to enter to qualify for the World shows. They will lose all those entries and entry fees. Also, those members who do haul will end up at the World Show with wore-out trucks and horses and an empty pocket book, all the while trying to do it right!
Actually, what this latest invention really amounts to is just a slap in the face of honest competition, hard work, integrity and values. The same worthy standards we should be instilling in the next generation of showman – the youth.
Click for link to AQHA Sale Bonus Program release>>
NEW ONLINE HORSE AUCTIONS ANNOUNCED
Courtesy Professional Horse Services, LLC
May 1, 2014
Mike and Stephanie Jennings, Round Hill, Va., of Professional Horse Services, LLC, announce the addition of three new Online auctions to be held this Summer for Show prospects and Broodmares.
These new Online Auctions are the High Performance Prospect Sale in June and the Broodmare Affaire in July.
Mike Jennings states “We wanted to offer summer auctions for show prospects for several reasons. Breeders can sell from home and market their horses earlier in the year to realize a savings on training and expenses.
Trainers can buy prospects earlier so the horses will be in their program longer before the fall futurities. People who like to buy for resale can find horses to develop and sell in the fall auctions or at the major shows.”
Trainers, agents and owners can take advantage of the new Commission Share option. The owner will pay a slightly higher commission, which will be split between the trainer and Pro Horse Services. The owner will have the benefit of two parties working hard to sell their horse and the trainer will receive compensation as well.
The High Performance Prospect Sale in June will feature a session closing on June 12 for reining, cutting and cow horse prospects. A session for Western pleasure and hunter under saddle prospects will close on June 11. This sale will focus on marketing yearlings, as well as 2- and 3-year-olds. Pro Horse Services would like to receive the entries by May 10; however, they will work with consignors’ schedules, knowing it is show season.
The Broodmare Affaire is a variation of a broodmare auction held last year that was limited to halter mares. Based on requests, the 2014 auction will be open to performance and halter mares that are in foal or produced embryos this year. The mares offered will have show records, produce records or championship pedigrees. In 2013 the high-selling mare sold for $18,000. Broodmare Affaire will close on July 22 and entries should be made by June 10t.
These special auctions offer some added features that will enhance the presentation of the entries. Each one will display a full catalog pedigree page with research by Diane Johnson, of djj Pedigrees, who does the research for the Congress Super Sale catalog and did the NRCHA Snaffle Bit Futurity Sales. Ads have and will continue to appear in major print and digital magazines. Email blasts will send to 600,000 addresses including the Pro Horse Services list with buyers from the Congress Super Sale, US Marshals’ Sale of Rita Crundwell’s horses, AQHA World Show Sale and NRCHA Snaffle Bit Futurity Sale, as well as specialty lists.
As with any Pro Horse Services auction, sellers and buyers can rely on the experience of the industry leaders in show horse auctions. Mike and Stephanie Jennings have been involved with the sale of more than 50,000 horses. The Pro Horse Services Online auctions have now sold nearly 400 horses for more than $1.1 million dollars. This is the system that was used for the Online auction of Rita Crundwell’s horses for the US Marshals’ Service, which realized an average sale price of $20,000 with a high seller at $226,000.
For more information about the Online Auctions contact Mike or Stephanie Jennings of Professional Horse Services, LLC at 855-272-3905 or email to Info@ProHorseServices.com </cpsess9777265010/3rdparty/squirrelmail/src/compose.php?send_to=Info@ProHorseServices.com> . Or, you can visit our website at ProHorseServices.com
NCHA SUPER STAKES SALE FEATURES $10,573 AVERAGE; $10,150 MEDIAN
HIGH SELLER LULU SNOW PLACES 8TH IN NON-PRO FINALS FOLLOWING SALE
By Glory Ann Kurtz
April 22, 2014
Lulu Snow, owned by Russ and Janet Westfall, was the high-selling horse bringing $32,000. Later the day, the mare won $16,295 in the Non-Pro Super Stakes being ridden by Brandon Westfall.
Lulu Snow, a 4-year-old bay mare owned by Russ and Janet Westfall topped the NCHA Super Stakes Sale held Dec. 9 in the Watt Arena of the Will Rogers Complex in Fort Worth, Texas, bringing a $32,000 final bid.
When the last gavel had been pounded, 82 horses passed through the sale ring with 59 reportedly changing hands for $623,200, averaging $10,563 for a $10,150 median. (Median = halfway between the highest- and lowest-selling horse.) Twenty-three horses were passed out or their reserve was not achieved, totaling $484,200 for a $21,052 average and $17,000 median.
It was announced during the sale that Lulu Snow, a daughter of CD Royal out of Smart Like Dusty by Smart Little Lena, with earnings of $13,462 had made the Non-Pro Finals of the Super Stakes that would be held later that afternoon; therefore, the mare was simply led in front of the auctioneers rather than being ridden. As it turned out, the new buyer (buyers were not provided by sale management) got a deal as the mare, ridden by the Westfall’s son, Brandon, finished the Non-Pro finals in eighth place, earning an additional $16,295 (unofficially).
Her sire CD Royal (CD Olena x Boons Royal Uno x Boon Bar) is owned by the Westfalls and was shown by the Westfalls to close to $200,000 in the cutting arena. He is listed as an NCHA Top 25 Sires, siring offspring of over $2.8 million. Also, her dam, Smart Little Dusty, is one of the most outstanding mares on the West Coast, with $175,953 in lifetime earnings and 10 foals that have won close to $495,000, including Lil Dusty Lola, earner of $219,040.
Hiasacat, a 4-year-old gelding owned by Kelle Earnheart and shown by trainer Clint Allen,was the second high-selling horse, bringing $28,000.
The second high-selling horse was Hiasacat, a 4-year-old sorrel gelding, owned by Kelle Earnheart and shown by trainer Clint Allen, bringing a $28,000 final bid. Hiasacat, sired by WR This Cats Smart, a $236,514 money-earning son of High Brow Cat, is a leading sire of NCHA and NRCHA earners of over $5 million, including Teles Bout This Cat, earner of close to $205,000. His dam is The Smart Look, one of the greatest mares in the cutting horse industry.
Hiascat is out of SR High Style, a Doc’s Hickory daughter, who earned $80,076, and produced 11 offspring with earnings of close to $609,000, including High Style Travalin by Travalena with $226,258 in earnings, including the Open and Amateur Champion of the PCCHA Derby. Kelle and the gelding, with $71,432 in lifetime earnings, split sixth in the 2013 in the NCHA Non-Pro Futurity among other accolades, and brought a final bid of $28,000 in the ring.
Bobby Kerr gave a demonstration of his mustang Jinglebob.
Prior to the sale, an exhibition by Bobby Kerr, included his well-broke mustang Jinglebob, shown cutting on a mechanical cow and then live cattle as well as doing tricks, laying down for Kerr to get on and off, and loading him in an open truck.
A horse trainer for 40 years, Bobby was the Champion in the Legends division of the 2012 Supreme Extreme Mustang Makeover and voted Fan Favorite in 2011 and 2012.
Also special offerings of Cat Ichi lifetime breedings were sold bringing $600 for the first one offered by Bettina Jary-Mathis and two mare bringing a total of $600. Also, a High Brow Cat ICSI breeding consigned by Darren Blanton, brought $19,000 final bid. The sale was for the fee only, not for the actual breeding by ICSI. Proceeds were to benefit Cutting Edge Retirement.
Prior to the sale, a 2008 brown mule named Elmo was sold for $5,500. Consigned by Jan Seago, the gelding had ponied up to three horses at a time. He had also been used to gather cattle and buffalo and been on trail rides and has been used to rope on.
Produced by Western Bloodstock, the crowd was sparse even though it was held just prior to the Open and Non-Pro Super Stakes Finals.
Sale Results published by Western Bloodstock>>
AQHA PURCHASES ROBIN GLENN PEDIGREES; WATER CONTAMINATION IN SILVERADO ON THE BRAZOS; SEMIFINALISTS FOR NCHA OPEN SUPER STAKES
By Glory Ann Kurtz
April 15, 2014
AQHA PURCHASES ROBIN GLENN PEDIGREES:
The American Quarter Horse Association (AQHA) today announced that they had purchased Robin Glenn Pedigrees (RGP), El Reno, Okla., one of the leading sale catalog and pedigree services, that has been owned by Glenn since 1981. The sale was a result of a recommendation by AQHA Second Vice President Dr. Glenn Blodgett, veterinarian and manager of the 6666’s and Burnett Ranches, Guthrie, Texas.
“I am really looking forward to the information resources and the innovative marketing tools that I know will evolve,” said Blodgett in a press release. RGP has produced sale catalogs for some of the top race horse sales, including Heritage Place Sale, Los Alamitos Equine Sale, Ruidoso Select Yearling Sales and Texas Quarter Horse Association sales, as well as the National Reining Horse Association and National Cutting Horse Association sales produced by Western Bloodstock.
RGP will remain in El Reno, Okla., and the current staff will continue to provide the same services under the direction of RGP founder Robin Glenn. Aside from sale catalogs, RGP provides records of money earned by horses in nearly every performance event as well as pedigree pages, which have been services that RGP has charged for. The RGP FoalTracker, a personalized weekly notification service providing the previous week’s accomplishments of horses or their foals and the RGP Weekly Results Report, a detailed report of limited age event championship results and horse earnings, have been free services that are e-mailed to anyone who requested them.
Unconfirmed sources tell me that the purchase price was $5.7 million.
Click for article published by AQHA>>
EPA REQUESTED TO REOPEN INVESTIGATIONS INTO WATER CONTAMINATION CASES IN SILVERADO ON THE BRAZOS SUBDIVISION
According to a April 3 article in the Weatherford Democrat, a congressman and seven U.S. representatives have signed a letter asking the EPA and to reopen its investigations into water contamination issues that are possibly related to oil and gas drilling operations.
Water contamination was reported by Steven Lipsky and others who live in Silverado on the Brazos, an upscale subdivision south of Weatherford, Texas, for owners of cutting horses, as well as neighboring residents of the subdivsion. Lipsky was embroiled in a battle to prove that natural gas drilling had contaminated his well water to the point he has put on numerous demonstrations of him lighting his water on fire as it pours from a spigot. Several demonstrations were carried on the air by local and national television outlets.
Lipsky sued Range Resources but the case was dismissed by a Parker County Judge. Range Resources retaliated by filing a suit alleging defamation, among other things, against Lipsky.
On March 12, 2012, the EPA dropped an emergency order issued in late 2010 against Range Resources, halting a federal court battle and the inquiry into the cause of the gas migration. They expressed concern about mounting legal costs and concerns about how the legal outcome could affect other enforcement of the Safe Drinking Water Act. Critics claimed the administration declined to pursue the case because of industry and political pressure.
Lipsky is hoping that ongoing studies, including one by Duke University researchers, who have been to his home, will vindicate his claims that drilling has contaminated not only his well water but also area water wells.
Click for article in Weatherford Democrat>>
SIXTY THREE OPEN RIDERS TO COMPETE IN NCHA SUPER STAKES SEMIFINALS, FRIDAY, APRIL 18
From a field of 326 entries, a total of 63 have completed two go-rounds and graduated to the semifinals of the event, which will be held Friday, April 18, starting at 8 a.m. at the Will Rogers Complex in Fort Worth, Texas. The event began on March 27.
The field includes 63 horses sired by 23 stallions, headed up by the industry’s leading sire High Brow Cat. The semifinals will include 46 riders, with two competitors, Matt Gaines and Austin Shepard showing three horses. Thirteen riders will be showing two horses. The balance will show one horse each.
Riders competing on two horses include Clint Allen, Adan Banuelos, Lindy Burch, R. L. Chartier, Michael Cooper, Lloyd Cox, Lee Francois, Wesley Galyean, Gary Gonsalves, Clay Johnson, John Mitchell, Tag Rice and Tarin Rice.
High Brow Cat can almost be assured that his babies or grandbabies, will keep the stallion in his No. 1 spot since 38 of the 63 semifinalists, or 55 percent, are either sired by High Brow Cat or by a son of High Brow Cat. High Brow Cat has 18 qualifiers, and his son High Brow CD has the next highest number with six. Metallic Cat has 4; Smooth As A Cat, High Brow Cougar, WR this Cats Smart and Cats Merada each have 2, while Hydrive Cat and Neat Little Cat each have one.
Other stallions represented in the semifinals will be Dual Rey with four semifinalists; Im Counting Checks, 3; Peptoboonsmal, 3; One Time Pepto, Woody Be Tuff, Dual Smart Rey and Halreycious, each with 2, and Boon San, Nitas Wood, Wilds My Thing, Scootin Boon, Hesa Peptospoonful and Flow Rider, one each.
For more information and results go to www.nchacutting.com.
NCHA SUPER STAKES SALE TO BE HELD SATURDAY, APRIL 19
A total of 91 horses have been cataloged for the 2014 NCHA Super Stakes Sale scheduled to be held Saturday, April 19, at 10 a.m. in the Watt arena of the Will Rogers Equestrian Center, Fort Worth, Texas.
Also offered will be a special offering of a lifetime breeding to Cat Ichi, consigned by Bettina Jary-Mathis and a 2014 High Brow Cat ICSI breeding consigned by Darren Blanton. Proceeds will benefit Cutting Edge Retirement.
Buyers will be able to take advantage of the Breeders Invitational Sale Incentive, where all eligible yearlings sold at any Western Bloodstock Sale throughout the year are eligible to participate in the BI-Western Bloodstock Sale Incentive.
Sellers/Buyer has the option to pay $600 to make the foal eligible for the BI-Western Bloodstock Sale Incentive purse which will be paid out to the four highest-advancing eligible foals in the Open and non-Pro classes of the BI Derby in the year of competition. To date, they have paid out over $500,000.
The sale will be produced by Western Bloodstock. Go to: www.westernbloodstock.com
BIG DEMAND FOR BROKE HORSES AND CUTTING HORSES
TOP 20 AT MARKETPLACE AT ARDMORE SALE AVERAGE $11,960
Press release from The Marketplace at Ardmore Sale
April 3, 2014
The Marketplace at Ardmore, a consignment auction for performance horses, held its spring sale on March 29, at the Hardy Murphy Coliseum in Ardmore, Okla.
Sale manager Susie Reed said, “We had just one heck of sale, with broke horses and cutting-bred horses selling well; plus, we saw an increased interest in yearlings and 2-year-old prospects.”
In the regular session, the Top 10 head averaged $14,860, and the top 20 averaged $11,960 for an overall average of $4,776.
Reed commented, “There wasn’t a dramatic sale price spike that can skew the average. We were happy to see prices spread evenly for the top 10 head, with high seller at $18,000 and number 10 selling for $11,700.”
A 2004 mare by Dual Rey, Lena Jo Rey, with lifetime earnings of $16,949, was consigned by Richard Bell and sold to Nick Meagler. The second high seller consigned by James and Nadine Payne was Duall N Smart, a 2007 mare, earner of $18,000 and sired by Dual Pep, that sold to Keith McMaha.
“The offering was well received, and it was obvious we are reaching our target market because out of 148 head, we sold an astounding 94 percent,” Reed stressed.
Buyers represented the U.S., Canada, Mexico and South America.
The next Marketplace at Ardmore Sale will be held November 1, 2014. For more information, contact Susie Reed 580-276-4830, cell 580-490-1103 or visit the website: www.themarketplaceatardmore.com.