Trainers Owed Money By Zayat Stables May Have A Long Road To Get Paid

While it looks as though farms and veterinarians owed money by Zayat Stables may have some means of getting their invoices paid, trainers may be in a more complicated spot.

That’s according to documents filed in Fayette County Circuit Court this week in Lexington, Ky., by the receiver appointed to run the stable during a civil suit filed by New York-based MGG Investment Group and Zayat Stables. The third-party reciever requested clarification from the court about its order putting her in charge of the operation’s business affairs. Through counsel, Elizabeth Woodward of Dean Dorton Allen Ford explained she has been approached by trainers, farms, veterinarians and others about outstanding bills Zayat Stable is alleged not to have paid. Some, the receiver said, total “hundreds of thousands” of dollars.

Attorneys agreed that boarding farms and veterinrians can claim what are called agister’s liens on Zayat horses for services associated with care, feed, grazing and lodging. This means that when a Zayat Stables horse is sold, providers of those services can come forward and be paid for outstanding bills from sale proceeds – but only the bills incurred by that specific animal.

It seems racetrack trainers may not fall under the definition of agisters under Kentucky law, however, which means they cannot claim a piece of a horse’s price when it goes to sale (as it’s expected all the stable’s horses eventually will). The receiver and MGG Investments agree that some horses should remain in training this season with the hopes of increasing their value, and their training expenses will be paid going forward – but MGG doesn’t want to be responsible for the debt incurred by Zayat before the civil case and receivership began.

That means, according to Woodward’s counsel, trainers who still have Zayat horses will be offered a choice – agree to keep training a horse with an outstanding balance with the promise they’ll be paid going forward, or tell the receiver to get the horse out of the barn. Those with unpaid bills from horses that have left the barn may have to go to court to get paid.

At a motion hearing Friday, counsel also made reference to several complaints recently brought before stewards of the California Horse Racing Board concerning outstanding invoices. Those bills may have been settled to keep the stable from losing its owners’ license.

The court did not rule Friday on a series of motions to dismiss co-defendants who had been added to the suit by MGG last week, including members of the Zayat family and breeders who purchased horses or breeding rights from Zayat Stables. Those motions are expected to be considered by Judge Kimberly Bunnell on Feb. 28.

The post Trainers Owed Money By Zayat Stables May Have A Long Road To Get Paid appeared first on Horse Racing News | Paulick Report.

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