Judge's Rule 54 Clarification on Initial Rulings in PAT/AHA Trial
November 28, 2018
The following document is the judge’s Rule 54 Clarifications on the initial rulings made in the PAT/AHA trial.
This ruling clarifies that the AHA is required to provide, maintain and update a fully functioning Purebred Registration services system and that system is owned by the Trust. And a certified updated copy is to be provided the Trust a minimum of once a year beginning March 1, 2019.
Further, the AHA can choose to designate the current HRS system as the certified system, at which time it becomes owned by the Trust.
This clarification satisfies the Trust’s original request for declaratory judgment and rules completely in the Trust’s favor.
It is unfortunate that the Association chose to expand the scope of the litigation to include personally suing four AHA board members who were also Trustees. The court ruled in favor of the Trustees and denied all of AHA’s claims against the Trustees. This exponentially increased the expenses incurred for both organizations.
The only purpose of the original request for declaratory judgment was to ensure the purpose of the formation of the Trust was protected, which was to be in a position to continue registration services for Purebred Arabians should AHA be unable or unwilling to do so.
Today the PAT Trustees unanimously approved a $10,000 donation to the Arabian Horseman's Distress Fund (AHDF) to help with horses displaced as a result of the California wildfires.
While the amazing service the AHDF provides to those who have suffered tragedy within our Arabian horse community is laudable on its own, the PAT found it particularly noteworthy that the AHDF's notable efforts toward horses of all breeds in this capacity is simply the right thing to do. We should all be proud to call the Arabian horse community our home as the AHDF leads the way in such a monumental public tragedy within the equine world.
As of Monday, the AHDF has contributed the following to the California wildfire relief efforts:
- 4 truckloads of hay
- Countless bales of shavings
- Muck Buckets
- Halters & Lead Ropes
- Medicinal Supplies, and more.
The Purebred Arabian Trust is proud to support this effort and we hope that others are inspired to do the same. Click here to donate today: https://bit.ly/2zVsgvI
Purebred Arabian Trust Statement Regarding the Court Ruling in the PAT/AHA Litigation
September 28, 2018
After the parties could not come to an agreement on their own, the Purebred Arabian Trust (referred to as the "Trust") brought this case, not seeking any damages, but solely to obtain a court determination that it is entitled to ownership of the technology AHA uses to register purebred Arabian horses and to perform related services. After eight days of trial, the Court found that focusing on “ownership” does not resolve the real issue. The Court concluded, “regardless of who owns the present version of the HRS (or future updates of the HRS or even some yet unknown form of technology) the real question is what obligation does the Association have to maintain a technology system capable of registering purebred Arabian horses?” On that question, the court has concluded that the Trust is indeed entitled to and AHA is obligated to provide to the Trust a standalone software system and database which performs those registration functions—not for the Trust to compete with AHA but to protect the breed by allowing the Trust to resume performing purebred registrations in the event that AHA cannot do so. Judgment has entered on behalf of the Trust. It is thus the prevailing party on the principal dispute with AHA.
AHA’s attempt to spin this result as a win for AHA is simply wrong. Instead of acknowledging the Trust’s ownership of the existing HRS system, which would have cost it nothing since it retains a perpetual license to use the software, AHA unnecessarily enlarged the size of the litigation, incurred legal expense estimated to be several hundred thousand dollars, and is now obligated to spend significant further amounts to create and maintain for the Trust a separate registration system that it does not presently have.
The four individual Trustees who were the targets of AHA’s malicious claims of breach of fiduciary duty and conspiracy are gratified by the Court’s forceful rejection of those claims. These claims failed not only because AHA owns HRS, but for a total lack of evidence. As the Court noted, AHA was unable to establish even that there was a conflict of interest in the Trustees voting to approve AHA technology expenditures, which would have passed regardless of any Trustee votes and, as all agreed, were necessary and in the best interests of AHA. Under Colorado law, AHA is now obligated to pay the reasonable costs of the Trustees’ defense of those claims.
Please click here to find the judge's order for the PAT / AHA Litigation that was released on September 20, 2018.
Findings of Fact, Conclusions of Law and Judgement Released in PAT vs AHA Litigation
September 20, 2018
Please find the judge's order for the PAT / AHA Litigation released earlier today.
The Purebred Arabian Trust (PAT) initiated legal proceedings against the Arabian Horse Association (AHA) in order to seek a legal determination of its rights concerning ownership of certain “Licensed Technology” (including software and related material AHA uses in connection with its operations relating to registration of purebred Arabian horses). The PAT’s rights arise under a 2003 License and Security Agreement between AHA and the PAT under which the parties agreed that PAT would retain ownership of the Licensed Technology and Documentation, and of all replacements, additions, deletions, enhancements and modifications to, or derivative works of the Database, Documentation and the Software, and would license its use to AHA in return for a royalty payment. The License and Security Agreement can be found here.
AHA has paid the royalty fees called for by the Agreement since 2003. The PAT, in turn, has used a substantial portion of those proceeds for various purposes relating to the purebred Arabian horse such as approved requests from the Market Development and Promotion Committee of the Arabian Horse Association (most recently the Arabian Horses for Humanity project), the Al Marah Arabian Horse Galleries at the Kentucky Horse Park and other approved requests for promotional projects. AHA now denies that the PAT continues to be the owner of the Licensed Technology. The PAT began this legal action only after attempts to resolve the disagreement over ownership through negotiation were unsuccessful.
AHA has responded to the PAT’s claim, confirming its position denying PAT ownership and making certain counterclaims against the PAT. AHA has also asserted claims against several Trustees of the PAT personally. The PAT believes AHA’s claims against it and the Trustees are groundless and will defend those in the pending litigation.
Arabian Horse Galleries Opening Ceremonies June 12th at Kentucky Horse Park
May 20, 2010
LEXINGTON, KY (May 20, 2010)—The new $10 million addition to the Kentucky Horse Park’s International Museum of the Horse will be hosting its Grand Opening on June 12, 2010 after nearly 2 ½ years of design and construction. The Al-Marah Arabian Horse Galleries will be the largest major addition to the 52,000 square foot International Museum of the Horse in the history of the Kentucky Horse Park, and will expand its permanent exhibition space by nearly 20 percent.
Spearheaded by the Purebred Arabian Trust (PAT), the Al-Marah Arabian Horse Galleries will showcase the journey of the world’s oldest breed of horse through pages of history through 1.) Art & Artifacts from around the world and 2.) Technologically enhanced Interactive Exhibits geared toward youth visitors ages 8-14. It has been completely funded by the PAT and generous support from Arabian enthusiasts and interest groups. Among many ceremonious activities on June 12, it will be gifted to the Commonwealth of Kentucky under the stewardship of the Kentucky Horse Park.
The Arabian Horse Galleries recently doned the name Al-Marah in honor of Al-Marah Arabian Horses—the vision, lifelong love and work of Mrs. Bazy Tankersly, a luminary in the Arabian horse industry worldwide, and a dedicated shepherd of the breed since the 1950’s. Mrs. Tankersly has shown generous support for the Arabian Horse Galleries out of her passion for promotion and education of the Arabian horse.
Basic Facts of the Al-Marah Arabian Horse Galleries include:
- 8,000 square foot, two-story permanent attachment to the Kentucky Horse Park’s International Museum of the Horse
- Centrally located near the Park’s entrance for prime positioning
- Exhibits are being designed by nationally acclaimed Hilferty & Associates (London, OH)
- Its architecture displays a modern interpretation of the Bluegrass architectural style found throughout the Kentucky Horse Park
Among the many unique experiences found in the Al-Marah Arabian Horse Galleries, a few include:
- A media-enhanced desert cave entrance experience with whispers in Arabic, blowing sand sounds and fleeting images of Arabian horse cave drawings
- Discovery Oasis interactive kids kiosks that evoke a personal interaction and learning experience by a magnetic card they insert at each kiosk and turn in at the Galleries’ exit
- An “Arabians of the Stars Theater” that shows clips of movie stars and famous Arabian horses
- The Black Stallion Experience, an area dedicated completely to the literary and cinematic magic of the most famous fictional horse ever created—Walter Farley’s The Black Stallion
The long-awaited Opening Ceremonies will be held at the Kentucky Horse Park on Saturday, June 12 from 5-7pm in the lobby of the International Museum of the Horse. Activities include the ribbon cutting, presentation of the museum to the Commonwealth of Kentucky, organized first tours of the Arabian Horse Galleries and a cocktail reception. Exclusive Sunday Celebration Tours are also available on June 13. The Al-Marah Arabian Horse Galleries will open to the public on June 14th, and is included in regular admission to the Kentucky Horse Park.
The Al-Marah Arabian Horse Galleries Opening Ceremonies will be broadcast live around the world that evening at www.iequine.com.
For inquiries on media passes and tickets to the Opening Ceremonies, please contact Lisa Jackson at Lisa.Jackson@ky.gov.
Museum Renamed the Al-Marah Arabian Horse Galleries
January 16, 2010
Mrs. Bazy Tankersley is known for many things relating to the Arabian horse: lifetime breeder and owner of Arabian horses (breeder of over 2,100 foals—more than anyone else in the world); perpetrator of Arabian horse education and history (founded the Arabian Horse Owners Foundation); and founding owner of the acclaimed and historic Al-Marah Arabians.
When the Arabian Horse Galleries became a reality, Mrs. Tankersley quietly but quickly offered her support, understanding the full magnitude this meant to the future of the Arabian horse by the millions of visitors each year that walk through the Kentucky Horse Park’s doors.
“There aren’t many people in life that have such a high level of conviction and love for something that they’re willing to do what Bazy did,” says Bob Fauls, chairman of the Arabian Horse Galleries. “She’s loved this horse all her life and wants the qualities of the Arabian horse to be appreciated. She has provided critical support for this project.”
In appreciation of Mrs. Tankersley’s generosity, the Arabian Horse Galleries will bare the name of her ranch, Al-Marah, meaning ‘the oasis’ in Arabic. Hereafter, the Galleries will be renamed the Al-Marah Arabian Horse Galleries, a recognition which Mrs. Tankersley did not seek. Less concerned with credit and more concerned with educating the general public about Arabians, Mrs. Tankersley and the Arabian Horse Owners Foundation consider the Arabian Horse Galleries an extremely important project in keeping the legacy of the Arabian horse alive and well.
The Al-Marah Arabian Horse Galleries will open June 12, 2010.
Want Your Name on the Donor Wall at the Galleries' Opening? Donate By February 26.
February 19, 2010
Museum designers announced a deadline of February 26, 2010 for the final list of initial names for the Arabian Horse Galleries Donor Wall that will be displayed at the museum's opening ceremonies on June 12, 2010. Donations received after February 26 will be added to the Donor Wall throughout various content updates, but not before the opening ceremonies, which include among other activities complimentary Donor Wall photos for donors.
Gifts of $1,000 or more (larger gifts receive larger recognition) supporting the Arabian Horse Galleries offer permanent placement on the beautiful glass-etched Donor Wall at the Galleries' exit. Donors may designate their recognition to be listed as their name, farm name, or "in honor of/memory of" a horse or loved one.
If you are considering a gift and would like your recognition to be included on the Donor Wall in time for the Opening Ceremonies, donate before Friday, February 26, 2010.