Court Will Enter Injunction Forcing AQHA to Register Clones & Their Offspring

On August 12, 2013, an evidentiary hearing was held on Plaintiffs’ request for attorneys’ fees and for injunctive relief that would require the AQHA to register clones and their offspring. 

Following the hearing, U.S. District Judge Mary Lou Robinson informed counsel that she would grant an injunction requiring the AQHA to register horses produced by cloning and their offspring.

On August 14, 2013, the court entered an order (which can be accessed here) setting forth specific changes and additions to AQHA rules and regulations, which, according to the order, the judge is considering for inclusion in the injunction. The order requires that any objections to the proposed rule changes be submitted by noon on August 19, 2013.

The court has not yet ruled on Plaintiffs’ request for nearly $900,000 in attorneys’ fees. The court ordered the Plaintiffs to furnish their billing statements to AQHA, and also ordered AQHA to file any objection to the request for attorney’s fees, by August 14, 2013. A copy of AQHA’s objection to Plaintiffs’ attorneys’ fees, filed yesterday, can be found here.  

AQHA’s primary objection to Plaintiffs’ fee request is the fact that the jury did not award any damages to Plaintiffs. Plaintiffs had sought $5.7 million in damages and sought to treble those damages under the antitrust laws for a total of $17.1 million. However, the jury awarded Plaintiffs zero damages.

At this point, the court has not yet entered final judgment in favor of Plaintiffs. According to this press release, AQHA will file a Motion for Judgment as a Matter of Law after entry of final judgment. In that motion, AQHA will request that the Court enter a take nothing judgment in favor of AQHA based on the fact that the jury’s verdict was not supported by the evidence. Should the court not grant AQHA’s motion, AQHA will file a notice of appeal thereby starting the appellate process.

Case Information: Abraham & Veneklasen Joint Venture, et al v. American Quarter Horse Association; Cause No. 2:12-CV-00103-J in the U.S. District Court for the Northern District of Texas (Amarillo Division)

Related Posts:

Federal Jury Rules Against AQHA in Cloning Suit

Federal Lawsuit Alleges AQHA Cloned Horse Registration Policy Violates Antitrust Law

Federal Jury Rules Against AQHA in Cloning Suit

Today, a 10-person jury in the U.S. District Court for the Northern District of Texas, Amarillo Division ruled that AQHA Rule REG106.1, which prohibits the registration of cloned horses and their offspring in AQHA’s breed registry, violates federal and state anti-trust laws. The jury awarded no damages.

In a statement published today on AQHA’s website, AQHA Executive Vice President Don Treadway, Jr. said,

When individuals with shared interests, goals and values come together to form a voluntary association to serve a common purpose, the members have a right to determine the rules for their association. The wisdom of our membership –which is largely not in favor of the registration of clones and their offspring—has not been upheld by this verdict.

Whether nor not clones will be able to be registered with the AQHA in the foreseeable future is still up in the air. According to AQHA President Johne Dobbs,

We will meet with our legal counsel and executive committee regarding our appeal options in continuing to fight for our members’ rights and announce our decision in that regard in the near future.

The plainitffs in the case have requested injunctive relief, in which they have asked the court to order the AQHA to register their cloned horses.  They have also requested that the court order the AQHA to pay at least a portion of their legal fees.  A hearing on the injunctive relief and fees request has not yet been held.  The jury’s verdict has not been reduced to a final judgment, nor has the court issued an opinion in the case at this time.  

Case InformationAbraham & Veneklasen Joint Venture, et al v. American Quarter Horse Association; Cause No. 2:12-CV-00103-J in the U.S. District Court for the Northern District of Texas (Amarillo Division)

Related Post

Federal Lawsuit Alleges AQHA Cloned Horse Registration Policy Violates Antitrust Law

Horse Slaughter Among Agenda Items at Texas Senate Committee Meeting

The Texas Senate Committee on Agriculture and Rural Affairs met this Tuesday to discuss, among other things, the impact of to the closure of horse slaughter facilities on the agricultural sector of the Texas economy. A copy of the meeting notice can be downloaded here.

The Committee heard both invited and public testimony on the issue of whether or not horse slaughter should be resumed in Texas. 

Texas Capitol Building at Austin, Texas

Included among those who gave testimony were:

  • A representative of the Humane Society of the United States;

I viewed part of the meeting from my office via the live streaming video recording (an archive of which can be viewed on this page). There was a full house in attendance. Many attendees showed up to state their opposition to horse slaughter due to their belief that the process is inherently inhumane. Their general response to the economic issues was that people should be breeding fewer horses, and that irresponsible breeders and owners are at fault for the unwanted horse problem. 

The horse industry groups generally presented evidence indicating the negative economic impact that the closure of the slaughter plants has had on the industry. The horse industry groups also presented studies evidencing the increased suffering of horses caused by the closure of the slaughter plants due to neglect and transport to Mexico for slaughter.

The veterinary associations' general stance on this issue is as follows:  Horse processing is not the ideal solution for addressing the large number of unwanted horses in the U.S.  However, if a horse owner is unable or unwilling to provide humane care and no one is able to assume the responsibility, euthanasia at a processing facility in a manner designated as humane by the American Veterinary Medical Association is an acceptable alternative to a life of suffering, inadequate care or abandonment.

I think it is a good sign that our Senate was interested in hearing testimony from knowledgeable individuals and groups on this very important issue. 

Federal Lawsuit Alleges AQHA Cloned Horse Registration Policy Violates Antitrust Law

On April 23, 2012, AQHA member Jason Abraham and two related business entities sued the American Quarter Horse Association (AQHA) in the U.S. District Court for the Northern District of Texas, Amarillo Division.

The complaint asks the court to order the AQHA to revoke AQHA Rule 227(a), on the basis that an outright restriction on the registration of cloned horses and their offspring allegedly violates federal antitrust laws.

Rule 227(a) was approved in 2004 by the AQHA board of directors, which prohibits all cloned horses and their offspring from being included in the AQHA’s breed registry. 

Other breed registries, such as the Jockey Club and the Paso Fino Horse Association, have also ruled that cloned horses and their offspring are not eligible for registration.

As discussed in this prior post, Texas law (which may or may not be deemed applicable in this case) favors a policy of judicial non-intervention with respect to the internal affairs of voluntary associations, such as the AQHA. An exception to Texas’s policy of judicial non-intervention can apply in cases where a valuable right or property interest is at stake in a lawsuit, and cases where a voluntary association’s rules violate the law.

For more information, see the following articles:

Lawsuit Challenges AQHA Cloned Horse Registration Policy

Suit Filed: Claims AQHA Ban on Cloned Horses Violates Antitrust Law

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Amarillo Court of Appeals Affirms $60k Sanctions Award in AQHA Case

Here’s another case that demonstrates the importance of filing suit in the correct jurisdiction.

Remember Becky George’s APHA defamation case that was dismissed due to lack of personal jurisdiction? George was represented by Thomas Corea of the Corea Law Firm, PLLC in that matter. 

Thomas Corea represented John Anthony “Tony” Burris in another lawsuit involving an allegedly defamatory letter that defendants Pamela J. Bilek, the Bilek Family Trust, and Bilek Quarter Horses, LLC sent to the American Quarter Horse Association (“AQHA”).  The letter at issue complained of Burris's activity as a judge for the AQHA.

Burris’s suit was originally filed in the 40th District Court of Ellis County, Texas. The Ellis County court dismissed Burris’s suit after determining that the State of Texas lacked personal jurisdiction over the Bilek defendants. Unlike in the Becky George suit, Corea did not appeal this dismissal.

The Ellis County Courthouse, in my hometown of Waxahachie, Texas

Seven days after Burris’s Ellis County case was dismissed, Corea filed (on behalf of Burris) three new lawsuits in Potter, Victoria, and Medina Counties of Texas. All of the new lawsuits alleged the same conduct against Bilek towards Burris that was the subject of the Ellis County lawsuit.

On the same day that the multiple lawsuits were filed, Corea sent an email to Bilek’s counsel advising that,

This is NEVER going away. Pam needs to get that through her drunk head that I will chase her to the end of the earth and she needs to get this settled now.

In response, Bilek’s counsel advised Corea that sanctions would be sought if Corea served any of the three new lawsuits. The Potter County lawsuit (which was identical to the Ellis County suit) was subsequently served on Bilek.

Bilek filed a special appearance (again alleging lack of personal jurisdiction) and motion for sanctions against Corea, the Corea Law Firm, PLLC, and Burris in the Potter County suit. Corea subsequently non-suited the Potter County case.

The 108th District Court of Potter County held a hearing on the motion for sanctions a couple of days after Corea non-suited the case. Corea appeared at the sanctions hearing by telephone, and did not object to any of the exhibits offered by Bilek’s counsel (who personally appeared).

The court found that all of the same jurisdictional facts alleged in Potter County had already been fully litigated and resolved in Ellis County, and determined that the Potter County suit was brought in bad faith and for purposes of harassment. 

The Potter County court ordered Thomas Corea, the Corea Law Firm, PLLC, and Tony Burris to pay Bilek $50,000 for costs and attorney’s fees, $10,000 to compensate Bilek for the deliberate and intentional harassment and inconvenience, and additional attorney's fees in the event of unsuccessful appeal. 

Corea appealed the sanctions award. The Amarillo Court of Appeals upheld the sanctions awarded by the trial court, in their entirety.

Case informationCorea v. Bilek, 2012 WL 602898, No. 07-11-00114-CV (Tex. App.—Amarillo, Feb. 24, 2012).

Are You On the List of Horse Haters?

The issue of horse slaughter is on my mind today after reading a news story about the introduction of a U.S. Senate bill proposing the recommencement of horse meat inspection funding.  That's when I poked around on the Internet a bit and found the "Haters List".

In case you haven't seen it, the blog Wild Horse Haters & Horse Slaughter Promoters published a lengthy list of horse hatin’ people and groups (i.e. opponents of the horse slaughter ban in the U.S., according to the blog's publishers) so that the public can boycott them, their members, and their services.

A link to the Haters List can be found here.  The Haters List includes the American Association of Equine Practitioners (AAEP) and just about every major U.S. horse association, cattle association, and farm association.

Note:  the publisher(s) of the Haters List and the blog on which is appears remain(s) anonymous.

I am a life member of two associations on the Haters List: the American Paint Horse Association and the American Quarter Horse Association.  What about you?

Milt Toby, a colleague of mine in Kentucky, did a blog post a while ago about how the issue of horse slaughter has a way of dividing people. But can we draw general lines to determine who, in general, is in favor of laws allowing for the processing of horse meat in the U.S. versus who is against such laws? 

Upon review of the Haters List, it would seem to me that in general, those who support humane horse processing in the United States are those who, either directly or indirectly, are in the horse business.  This includes the AAEP, a national group of equine veterinarians whose mission includes "meticulous concern for the health and welfare of the horse". 

There are of course others who support horse processing in the U.S. who aren’t directly or indirectly in the horse business. One example is Fort Worth Star Telegram journalist Bob Ray Sanders.  Mr. Sanders’s recent editorial entitled “Congress Should Revisit Ban on Horse Slaughter” cites evidence from the recent Government Accountability Office report.

And surely there are some in the “horse business” who are in favor of government bans on processing horse meat in the U.S.

But assuming the Haters List is correct, it tells us a lot about where the “line in the sand” is drawn. The Haters List seems to indicate that, in general, most horse businesses and equine veterinarians are in favor of humane horse processing in the United States. Do you agree with this assessment? 

While you ponder this poignant question, I’ll leave you with a quote from Milt Toby’s blog this week:

I think the world would be a better place if horses were not being slaughtered for food anywhere.  I think the same thing about cows and pigs and sheep and chickens and tuna and salmon, and I think it’s logically and morally inconsistent to categorically oppose one without opposing all.  And no, I’m not a vegan."

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**19 SEP 2011 Clarification:  Out of all of my readers, only two individuals read this post and thought that I agreed with the publishers of the "Haters List" and that I don't believe that any animals should be processed for meat.  Although most people "got" where I was coming from on this issue, this alterted me to the fact that I may need to clarify some things.  I was "poking fun", tongue in cheek, at the anonymous publishers of the "Haters List" because I feel that their methods greatly reduce their credibility.  I was also asking if anyone agreed with me that it seems that most equine vets and most people who are in the horse business support humane processing.  As far as Milt Toby's quote goes, I read it as saying that Milt believes you can't categorically oppose humane horse slaughter unless you also oppose the humane slaughter of other animals.**