IAHA Litigation Update
In an effort to keep IAHA members informed and to deliver the most current factual information in an easy-to-read format, the following update is provided. It is a summary of active litigation which the IAHA Legal Defense Fund is financing. Many thanks to each of IAHA's contributors.
David C. Boggs vs. IAHA, Michael Brown, Tom Connelly, and Mary Anne Grimmell
Civil Action No. 99-CV-3430, Division 3
District Court, Arapahoe County, State of Colorado
In October, 1999, David Boggs, an IAHA member and judge who had been suspended for five (5) years for unethical conduct, sued IAHA seeking to overturn the EPRB decision and sanction by IAHA as arbitrary and capricious. Shortly after the case was filed in October, 1999, Judge Leopold denied Boggs' motion for a temporary restraining order on the grounds, among others, that IAHA had acted reasonably in its hearing of the charges against Boggs.
Boggs has sought to amend his complaint twice, most recently to add individual defendants -- Mary Anne Grimmell, Tom Connelly and Michael Brown. The Court reluctantly -- and over IAHA's strenuous objection -- granted Boggs' motion to add Mary Anne Grimmell, Tom Connelly and Michael Brown. Brown immediately moved for summary judgment, and it now appears that Boggs will dismiss Michael Brown from the case before trial.
The three-day trial to Judge Levi is still set for April 16, 2001. IAHA continues to vigorously defend the case and resists suggestions of any continuance.
Mystique Lady Ventures vs. IAHA, Maria Murdock, Michael Brown, Barbara Burck, Tom Connelly and Brad Gallun
Civil Action No. 99-CV-3457
District Court, Arapahoe County, State of Colorado
This case involves the participation of the Arabian mare, San Jose Javiera, in the 1999 IAHA Canadian and U. S. National Championship Shows. The plaintiff, owner of FS Mystique Lady, alleges that IAHA acted in an arbitrary and capricious manner in permitting San Jose Javiera to show at the 1999 U. S. Nationals Show and in delaying its review of the horse's qualifications for the 1999 Canadian Nationals Show.
The Plaintiff filed a motion to add Brad Gallun, Mike Brown, Tom Connelly and Barbara Burck as individual defendants, and the Court granted the plaintiff's motion. The Judge expressed his reluctance to grant the motion, but relied upon the assurances of plaintiff's counsel that they had a good faith factual and legal basis for their motion. The Amended Complaint asserts fraud and breach of contract claims against Mr. Gallun and Ms. Murdock, and a breach of fiduciary duty claim against Mr. Connelly, Ms. Burck and Mr. Brown.
Mr. Gallun has been suspended by the AHSA Hearing Committee for 13 months and fined $15,000. AHSA revoked San Jose Javiera's 1999 U. S. Nationals Champion Mare title, and ordered her owner, Maria Murdock, to return all prizes. IAHA was not sanctioned. The EPRB heard charges of unethical conduct against Brad Gallun on August 14-15, 2000. Brad Gallun was suspended from IAHA for one year and is on probation for an additional year, as a result of his EPRB Hearing. IAHA revoked its recognition of the two Tree Top Rides and, as a result, revoked San Jose Javiera's 1999 Canadian Nationals Champion Mare title.
In early October, 2000, Ms. Murdock sued AHSA in New York. It is IAHA's understanding that Ms. Murdock's lawsuit, challenging the AHSA Hearing Committee's decision to strip San Jose Javiera's 1999 U. S. Nationals Champion Mare title, has been dismissed, so that all administrative proceedings concerning this dispute are finally concluded.
Mystique Lady Venture's attorney has made it clear that Mystique Lady Ventures will continue its lawsuit against IAHA and its officers and employees seeking damages even though it has now received all of the relief it sought in its administrative protests. IAHA has advised the Court that it regards the continued pursuit of the case as nothing but harassment. At the last hearing, the Court asked to be advised when the time for appeal on the dismissal of Ms. Murdock's New York lawsuit has run out and voiced its expectation that the issue of whether Mystique Lady Ventures' claims against the IAHA defendants are frivolous may be presented to the Court.
The case is set for a jury trial commencing October 22, 2001.
Harold and Dolly Orr vs. IAHA
Civil Action No. 00-CV-1858, Division 5
District Court, Arapahoe County, State of Colorado
Harold and Dolly Orr, owners of RSD Dark Victory, have sued IAHA and Michael Brown for: 1) product disparagement; 2) intentional interference with prospective business advantage; 3) defamation; and 4) violation of the Colorado Consumer Products Act. All of their claims arise out of the Orrs' claim that IAHA and Mr. Brown wrongfully published the EPRB's finding that the Orrs' horse, RSD Dark Victory, had undergone cosmetic surgery. IAHA and Mr. Brown answered the complaint on August 2, 2000, and IAHA filed a counterclaim against the Orrs for fraudulent concealment of cosmetic surgeries on two of their horses, including RSD Dark Victory.
The case is now at issue and trial is set to begin November 5, 2001.
The court ordered mediation which was set for March 15, 2001, was postponed until May 21, 2001.
London Derby, S.A. and Mayed, S.A. vs. IAHA and Michael D. Brown
Case No. 00 - CV - 1214, Division 3
District Court, Arapahoe County, State of Colorado
This is an action by the owners of the 1998 U. S. Nationals Champion Stallion, Magnum Psyche (shown by David Boggs) alleging: 1) product disparagement; 2) intentional interference with prospective business advantage; 3) defamation; and 4) violation of the Colorado Consumer Products Act. These claims are based on allegations that IAHA and Brown, IAHA's Judges & Stewards Commissioner, defamed Plaintiffs and disparaged Magnum Psyche in connection with IAHA's investigation and suspension of David Boggs. IAHA and Mike Brown have answered the complaint, and IAHA filed a counterclaim against the owners of Magnum Psyche for fraud, for knowingly entering a cosmetically-altered horse in an IAHA show.
The owners of Magnum Psyche filed a motion to dismiss IAHA's counterclaim. The Court denied the motion. The case is set for trial on December 10, 2001.
IAHA vs. David C. Boggs; Harold & Dolly Orr; Mystique Lady Ventures; Mayed, S.A.; and London Derby, S.A.
Civil Action No. 00-CV-2185, Division 4
District Court, Arapahoe County, State of Colorado
On August 10, 2000, IAHA filed a countersuit against David Boggs and several of his clients. IAHA's suit alleges that David Boggs enlisted the other defendants in the suit to file lawsuits against IAHA, and that these lawsuits were preceded by Boggs threatening to induce others also to file suits against IAHA to pressure IAHA into reducing Boggs' suspension or, failing that, to break IAHA financially. The complaint states several tort claims, including: 1) abuse of process; 2) intentional interference with prospective business advantage; 3) trade defamation; 4) prima facie tort; 5) duress; and 6) civil conspiracy. IAHA seeks to recover the fees and costs it has incurred in defending the several cases described above and punitive damages.
All of the defendants filed motions to dismiss the case. In February, 2001, Judge Stuart ruled that, "The motions to dismiss are denied in all respects except the following. The fifth claim for relief (Duress) is dismissed. Plaintiff (IAHA) must file a more definitive statement of the third claim (Defamation)." IAHA recently filed and served its amended complaint in compliance with the court order.
The case is now in the preliminary disclosure stage.
IAHA is committed to protecting the interests of its members and preserving its health and viability as a force for ethical conduct in all dealings with Arabian, Half-Arabian and Anglo-Arabian horses.
