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General Category => Ask the Experts => Topic started by: TGJB on April 28, 2009, 12:30:49 PM

Title: Rachel Alexandra, What Happened
Post by: TGJB on April 28, 2009, 12:30:49 PM
Attached find our response to an action instituted by Mike Lauffer, who bought half of Rachel Alexandra based on our recommendation. Lauffer brought this unusual action in advance of our suing him to try and prevent that, presumably in order to have the case adjudicated in his local Parish in Kentucky.

You can skip all the legaleze and go towards the back, to the section called \"Factual Allegations\", to find out what happened.
Title: Re: Rachel Alexandra, What Happened
Post by: smalltimer on April 28, 2009, 12:48:25 PM
Res ipsa loquitur....
Title: Re: Rachel Alexandra, What Happened
Post by: TreadHead on April 28, 2009, 12:49:38 PM
I have some names to call these people, but I guess they are probably best kept to myself.

Just to help clarify, so that we can all learn from this story, is the \"contract\" here just a verbal one and is that why they think they can get away with this?  Should people entering into similar business deals ALWAYS put stuff in writing, or did I misread and they went ahead and tried to screw you anyway even though the fees and agreements were in writing?
Title: Re: Rachel Alexandra, What Happened
Post by: shanahan on April 28, 2009, 12:54:29 PM
how often does this happen to you guys?  Have you had to get in the courtroom before?  Result?
Title: Re: Rachel Alexandra, What Happened
Post by: miff on April 28, 2009, 12:55:48 PM
Many horse transactions,buying/selling make Bernie Madoff look honorable.


Mike
Title: Re: Rachel Alexandra, What Happened
Post by: TGJB on April 28, 2009, 01:14:16 PM
There are a lot of emails with Kirk that have the same effect a contract does. Lauffer\'s claim is that he was not in a partnership but was a \"tenant-in-common\" so he should not be bound by the contract, and that under a Kentucky law aimed at agents (not consultants) you have to be listed on the bill of sale to get paid, which I was not (since he specifically told us he was not buying her, it would have been kind of hard to be on it, even if I ever was on a bill of sale).

That last part looks like it may be  good enough to win a fraud case, independent of getting paid my fees.

And by the way, the reasons he\'s defending himself with now are completely different than what he told someone who reported the conversation to me in an email.

If someone can find his filing electronically I\'ll post it here, but I can tell you there is no real dispute as to the facts other than the partnership issue.
You don\'t have to be a good guy to own a good horse.
Title: Re: Rachel Alexandra, What Happened
Post by: ronwar on April 28, 2009, 01:52:30 PM
Is that Latin for \"that\'s a shame\"
Title: Re: Rachel Alexandra, What Happened
Post by: Rick B. on April 28, 2009, 02:08:08 PM
No, it\'s Latin for \"Slam Dunk for Defendant\" (TG).
Title: Re: Rachel Alexandra, What Happened
Post by: TGJB on May 01, 2009, 02:58:48 PM
Very hard to know how to feel when watching that.

The jerk in question made millions, strictly because of my advice.
Title: Re: Rachel Alexandra, What Happened
Post by: ronwar on May 01, 2009, 03:10:02 PM
I hope it turns out well for you...That filly is incredible.
Title: Re: Rachel Alexandra, What Happened
Post by: jmh384 on May 01, 2009, 03:18:16 PM
be happy in your astute observation. this is why your the best. explain to the gentle man that it was your advice and you should be compensated, and would you rather give me the money or the lawyers.if he is an idiot he will make you drag him through the mud. (its not very comfortable being asked these kind of questions if she races in belmont  big summer races or the breeders)then sit back enjoy your call.... then sue his stupid ass
Title: Re: Rachel Alexandra, What Happened
Post by: TGJB on May 01, 2009, 03:26:32 PM
The suit is at the top of the string. You would assume the guy would figure out he\'s better off paying me, but if he was reasonable he wouldn\'t have pulled this crap to begin with.
Title: Re: Rachel Alexandra, What Happened
Post by: Rick B. on May 01, 2009, 03:30:43 PM
As a computer software consultant, I\'ve had to work for some total jerks -- and do so with a smile on my face. I always give the customer my best effort, regardless, and I sleep like a baby because of it.

You knocked this one out of the park, Jerry, and earned every cent of your fee. That\'s how you should feel.

Sleep well tonight and beyond, and now let your lawyers earn every cent of *their* fee.
Title: Re: Rachel Alexandra, What Happened
Post by: dodie on May 01, 2009, 03:47:49 PM
In answer to \"how often does this happen?\" I say all too frequently.  Jerry\'s fees are pretty standard in the industry.  In fact, he\'s actually a bargain because he doesn\'t ask for a breeding season.  
  Here\'s a true story.  Kenny McPeek bought Curlin for $57,000 at a yearling sale for those crooks Shirley and Bill of phen phen fame.  He then took a year off from training immediately after.  Kenny\'s assistant, Helen Pitts, was hired by many of Kenny\'s owners.  One of those horses is Einstein, who I think Kenny bought.  (Don\'t quote me on that.)  Kenny worked as a bloodstock agent for a year, and decided to come back to training.  THE ONLY HORSE HE ASKED ANY OF HIS PREVIOUS OWNERS TO LET HIM TRAIN WAS CURLIN.  Needless to say, they kept him with Helen, then sold part of him, went to Assmussen, the rest is history.  The point of all this is, after asking these guys numerous times to pay him the $57K for Curlin, they finally paid it as the whole phen phen thing was coming up.  I know of at least two other owners that told Kenny to buy horses for them, never paid him for them, or refused to pay the commissions he asked.  He never pursued them . . . BRAVO FOR YOU JERRY!!  I think the bottom line is these greedy people think they can steam roller anyone that gets in their way or they think is weaker than them.
Title: Re: Rachel Alexandra, What Happened
Post by: jmh384 on May 01, 2009, 03:49:45 PM
no disrespect but your trump card is this guy has the best three year old in the country.if she was a grade 2 nobody cares. use the press. this idiot cant gauge your credibility in the handicapping world. make him look like the fool that he is.
Title: Re: Rachel Alexandra, What Happened
Post by: sighthound on May 01, 2009, 03:54:16 PM
QuoteIn answer to \"how often does this happen?\" I say all too frequently. Jerry\'s fees are pretty standard in the industry. In fact, he\'s actually a bargain because he doesn\'t ask for a breeding season
.

Yes, I noticed that immediately, too.  And was a bit surprised, as it\'s an ongoing profit center potential many want.  

Strictly interested in only the result of what the business consults upon - racing prospects - and no interest in hanging on beyond that.  Beyond fair.

And yes - just because one has money, or is in horses, or has a household name in the sport, it doesn\'t mean jack about one\'s business or personal ethics.
Title: Re: Rachel Alexandra, What Happened
Post by: sighthound on May 01, 2009, 03:55:32 PM
Why use the press?   The guy has no class.  His word isn\'t his bond.  Why fall to his level?
Title: Re: Rachel Alexandra, What Happened
Post by: jmh384 on May 01, 2009, 04:04:16 PM
his level is your gonna have to sue me. i understand that and i cant tell you how that all works out. im not a contract or any other kind of lawyer. my point is its rare that you can you can embarrass a weasel like this.when you have the best horse in the country you have to answer questions. did anybody ask dutrow about steroids before big brown?  i respect all opinions
Title: Re: Rachel Alexandra, What Happened
Post by: TGJB on May 01, 2009, 04:17:42 PM
Sight-- You would be shocked then at how many times people complain about my rates-- cost me lots of clients.

And the rates the other guys charge publicly are just the ones people know about. You\'re down there, probably know a bit about that.
Title: Re: Rachel Alexandra, What Happened
Post by: TGJB on May 01, 2009, 04:18:51 PM
McPeek\'s attorney is my attorney on this.
Title: Re: Rachel Alexandra, What Happened
Post by: dodie on May 01, 2009, 04:23:11 PM
If the 2 guys I respect most in this industry use the same attorney, that\'s the guy I want.
Title: Re: Rachel Alexandra, What Happened
Post by: jmh384 on May 01, 2009, 04:24:11 PM
she ran a helluva race nice call
Title: Re: Rachel Alexandra, What Happened
Post by: sighthound on May 01, 2009, 04:35:08 PM
Gotcha.
Title: Re: Rachel Alexandra, What Happened
Post by: sighthound on May 01, 2009, 04:42:50 PM
When what you sell is your brainpower, people never fail to try and screw you.
Title: Re: Rachel Alexandra, What Happened
Post by: Barry Irwin on May 01, 2009, 07:16:11 PM
Best of luck with the legal action.