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THE VOTES ARE IN June 11, 2008 Chris Benedict, a trainer from Weatherford, Texas, has won the office of NCHA Vice President. According to a June 10 letter from Jeff Hooper to the Executive Committee and Directors, 3,341 ballots were received and were tabulated under the oversight of the accounting firm of Whitley Penn LLP. Benedict received 1,752 votes and Jerry Black, DVM, Oakdale, Calif., reeived 1,589 votes. Benedict will assume his duties as Vice President at the general membership meeting on June 22, 2008 during the NCHA Convention in Grapevine, Texas. Also official are the results of the Amateur Survey. A total of 2,152 responded, with 1,240 being amateurs, 577 non-pros, 162 trainers, 143 non-competing members and 26 youth. 1,534 have competed as an amateur. An overwhelming 1,379 said the $2,000 Limited Rider class should NOT be increased, 1,475 said the $10,000 Amateur class should NOT be increased, 1450 said the $50,000 Amateur should NOT be increased and 1,310 said the $20,000 Non-Pro should not be increased. Also 1,435 said the combined Amateur earnings of the 50-50 rule ($50,000 weekend, $50,000 Limited age) should NOT be increased. A total of 1,166 felt the amateur division should be left as is and 1,389 voted against Bronc's proposal to combine the Amateur and Non-Pro divisions. Also, 1,410 said they had not discussed this with their Area Director. MEMBERS FILE LAWSUIT AGAINST NCHA PAULA GAUGHAN AND DEAN SANDERS REQUEST ASSOCIATION FINANCIAL RECORDS By Glory Ann Kurtz According to the original petition, the purpose of the suit was to request inspection of the six categories of documents due to their concern that participation in certain NCHA events has declined while the costs borne by members wishing to compete in these same events have increased. “We are genuinely interested in fostering increased participation in NCHA events by lowering the costs associated with that participation and making sure that the membership dues and other monies received by the NCHA are being spent with the best interests of the NCHA membership in mind,” said the suit. Specifically, the suit is requesting to review the NCHA’s financial records and other requested documents to confirm that the NCHA was not guilty of waste or mismanagement in its financial affairs and in the administration of the NCHA’s business. The review would include all payments made and all compensation paid and expenses incurred by NCHA management over the past three fiscal years. Gaughan and Sanders felt the information would enable the NCHA membership to make informed decisions as to the most responsible and prudent course of action affecting the NCHA’s future financial affairs. The request is made by the Plaintiffs under Section 22.351 of the Texas Business Organizations Code. NCHA
RESPONSE: The NCHA did produce audited financial statements for the tax years 2004, 2005 and 2006 (the same financial statements that were published annually in the Chatter, the official publication of the NCHA.) They also requested the restraining order be dissolved. They also offered to have an agreed-upon qualified third party review the requested records to determine to what degree a confidentiality agreement is required. Regarding the confidential nature
of the records, the NCHA referred to another Texas case: Citizens
Association for Sound Energy (CASE) v. Boltz, in which a member
of the non-profit association CASE sought review of the association’s
records. CASE opposed the production of such documents and challenged
the validity of the statute. The trial court entered a protective
order, addressing the confidential nature of the requested documents
and ordered CASE to produce such documents. However, an Appeals
Court said that the challenges to the statute were unmerited.
The Plaintiffs are also seeking
an oral deposition of one or more of the following: The Plaintiffs said they previously requested the production of these financial records, policies and procedures affecting the treatment of these records and decisions made regarding the dispensation of NCHA funds and the NCHA has refused to produce them, interposing additional impediments to their production the fact that the Texas Legislature did not see fit to require of a member of a non-profit corporation when it published the Texas Business Organization Code 22.351. COMMUNICATION
FROM NCHA: The letter said there was also an Executive Committee that includes members who have “extensive financial and business experience that benefit the Association.” The letter also said the stated purpose for their request was “broad, general and ambiguous.” The letter also suggested that Gaughan and Sanders “become involved in the association on a more regular and consistent basis than you have in the past, including seeking election as a director and requesting appointment to various committees involved with the financial management of the Association, or contacting committee members and directors to express your points of view." In a May 13 letter, Mayfield and Willoughby stated that they have “contracts with sponsors and sale producers and a myriad of other formal and informal arrangements that are associated with an organization which operates on a national basis with a budget of over $25 million.” They stated that the rights of some of those dealing with the association must be treated in confidence and not be made accessible to competitors or the general public.” NCHA
PUBLISHED FINANCIAL STATEMENTS: A list of income from various sources was listed, including Net Show Activity revenue $140,914 in the red. In 2005, the revenue was $78,698 in the red. Net Chatter revenue was $284,127, down from 2005’s $330,622. Marketing revenue was $246,693, down from 2005’s $412,026; Membership Revenue was $348,235, up from 2005’s $320,303. Youth Revenue was $80,650 in the red, down from $10,818 in the black during 2005. Horse Sale Revenue was $750,000, up from the $725,000 received in 2005. Overhead Revenue, including interest earned, was $728,948, up from the $525,451 earned in 2005. However, professional fee expenses were $231,086, up from the $134,275 spent in 2005. Other overhead expenses, which were not listed, were $1.3 million, down from the $1.5 million in 2005. Total revenue in 2006 was $22,873,728 up from $20,279,088 in 2005. However, expenses were also up with $22,324,697 spent in 2006 and $19,708,132 in 2005. Net Income in 2006 was $549,031, down from $570,956 earned in 2005. The NCHA is represented
by their new lawyerJames W. Morris, Jr., of Goins, Underkofler,
Crawford & Langdon, Dallas, Texas. The Plaintiffs are represented
by James W. Walker of Walker Sewell LLP, Dallas, Texas. Walker
is the lawyer that is also representing Lainie Whitmire in her
case against the NCHA. 2008 AUSTRALIAN CUTTING FUTURITY MOVED TO SEPT. 27-OCT 5 May 19, 2008 -
Tamworth, NSW, Australia Also, contributing to the move was the fact that the Werribee and Toowoomba Futurity had constrictions, leaving no room for them to move from their original dates. "We understand that the Futurity is moving into the breeding season and that it partially crosses over with the AQHA Nationals," said NCHA General Manager Leon Maher. "There will be inconveniences for some members and positives for others. Unfortunately this year we have been shadowed by circumstances out of our control." The spectacular $30million AELEC Equine Centre will allow the NCHA of Australia to showcase the 35th NCHA Annual Futurity and compete for approximately $450,000 in prize money, with the winner of the Futurity taking home $75,000. MEMBERS MULL OVER BRONC WILLOUGHBY’S PROPOSAL AS HE MAKES A FEW CHANGES IN THE ORIGINAL PLAN By Glory Ann Kurtz Since the new proposal was introduced on this web site the end of March, Willoughby has talked to a lot of members about the proposal, as well as held conference calls, which included some NCHA Executive Committee members and directors from across the United States. He is adamant about the proposal and has taken it upon himself to get the word out prior to the upcoming NCHA Convention, where it will be brought up and explained more. However, after getting input from those members and directors, Bronc has decided to leave the $2,000 Limited Rider division where it is at – rather than increasing it to $5,000, as well as making the $10,000 Amateur class a $10,000 Non-Pro class, rather than increasing the amount to $15,000, as he had originally planned. Figures released regarding the Non-Pro/Amateur proposal, show that even though there are 7,568 amateur cardholders, which is 37 percent of the total membership of 20,214, 5,290 have earned at least $1, which is 26 percent of the total membership. In 2007, 3,032 amateurs earned money, which is 15 percent of the total membership and 40 percent of the amateurs. Of those 3,032 amateurs, just over $2 million was won in the Amateur classes, while $7.374 million was won in the non-amateur classes. Altogether, amateurs won $9.4 million. This means that in 207, amateurs won 75 percent of their money in non-amateur classes (ie) non-pro, $20,000 Non-Pro, $10,000 Novice/Non-Pro, $3,000 Novice Non-Pro. For more information on statistics regarding non-pros and amateurs, click on the link below. Click here for the statistics>> CAN
YOU HELP WITH A QUESTIONNAIRE? 1. How do you think the proposed
divisions would affect entries? If you care to answer the above four questions, tell me 1) Is your affiliate is a small
one or a large one. You don’t have to tell me the name of your affiliate or your name. They will not be published unless you want me to. Send your answers to glory@glorykurtz.com.
April 16, 2008 The forum is free and anyone can get on it to bring up a subject or give their opinion on a subject already posted. However, it will be monitored for slander so don’t bother to post anything malicious or slanderous. This forum can serve as a membership meeting 24/7 for those who get on the internet – a number that is growing everyday. There will also be several polls on the site. So get your subjects ready and click on www.cuttinghorseforum.com. SMART LITTLE LENA SYNDICATE FILES CLASS ACTION LAWSUIT AGAINST BILL AND JILL FREEMAN AND BILL FREEMAN INC. March 31, 2008
– Amarillo, Texas The suit states that the Smart Little Lena Syndicate was formed as an ownership group by Bill Freeman and Hanes Chatham. See Exhibit A It claims that Freeman, acting alone or in conspiracy with his wife, Jill, through his company Bill Freeman, Inc., abused his position as co-manager by using the Syndicate’s business opportunities, assets, bank accounts, relationships, reputation and records as if they were his own, for his personal gain and profit, to the detriment of the members of the “class.” Other claims against the Freemans include causing the Syndicate to pay both Bill and Jill Freeman excessive compensation to which they were not entitled; comingling his own funds with Syndicate funds; selling his own breeding contracts at higher prices than those allocated to the Syndicate to use to offset its expenses; taking proceeds from the sale of breeding contracts belonging to the Syndicate; altering and forging Syndicate records; withholding records and depleting the Syndicate’s assets. The lawsuit included seven counts, including a Declaratory Judgment, asking the Court to declare the rights, status and legal relations between the class members and the Freeman parties; misappropriation and conversion of funds and assets; breach of fiduciary duty; breach of contract; violations of the Texas Theft Liability Act; exemplary damages and attorney fees. (See link below) THE
BACKGROUND: At stake was the ownership of the 27-year-old stallion Smart Little Lena, the leading sire of cutting horses of all time, frozen semen, plus five clones that were born in 2006. The disagreements culminated
on Sept. 22, 2006, when during a meeting of the shareholders,
Bill was removed from his post as Syndicate co-manager and Jill
was removed as Syndicate secretary. They also voted to hire legal
counsel to represent the Syndicate and voted to take action to
seek immediate reimbursement from Bill and Jill for all misappropriated
and/or misused Syndicate funds. Since then, several other lawsuits
have been filed by Freeman against Karen, the Syndicate and individual
Syndicate shareholders and Antoinette Chatham – all with
no resolution.
SUSAN RAY SENTENCED TO 10 YEARS FOR EMBEZZLEMENT INVESTIGATORS UNABLE TO FIND $4.8 MILLION STOLEN FROM RESORT March 22, 2008
– Fort Worth, Texas Based on the crime and her lack of criminal history, prosecutors expected a five-year term; however U.S. District Judge John McBryde gave her the stiffest sentence allowed under a plea agreement. She has been in custody since February, when she was originally scheduled to be sentenced on Feb. 22. Ray, who also went by the names of Susan Hunt and Susan Thurow, owned well-bred cutting mares and sold eggs out of them at her Dream Cross Ranch, located on farm road 920, about six miles south of Lake Bridgeport. The mare was then bred to the buyer’s choice of stallion and the embryo (fertilized egg) was put in a carrier mare. She was arrested on Monday, June 18, 2007 for money laundering and embezzlement for stealing nearly $6 million from a Florida resort where she worked as the controller for the upscale resort hotel from Oct. 4, 2002 until Jan. 19, 2007. The resort is owned by the family of William S. Farish Jr., grandson of Williams Stamps Farish II, former president of Standard Oil. William Stamps was ambassador to the United Kingdom under President George W. Bush from 201-2004. Farish III, a breeder of top Thoroughbred horses, was the Chairman of the Board of Churchill Downs and current serves as Chairman of the Breeders’ Cup and the National Thoroughbred Racing Association Political Action Committee. He is also a member of the Board of Trustees of the Thoroughbred Owners and Breeders Association and Blood Horse Publications. He owns Lane’s End Farm, a 2,000-acre farm in Lexington, Ky., and a 300-acre Texas division near Hempstead. According to an article by Bryon Okada in the March 22 issue of the Fort Worth Star Telegram, even though a Secret Service was investigating the whereabouts of the money, it had not been found. They feel she spent some of the money building and maintaining the Dream Cross Ranch and purchasing, advertising, maintaining and breeding the mares. It was revealed; however, that an associate of Ray’s had recently traveled to Europe, leading to speculation that the money could be hidden in an offshore account or in Europe. Also, Special Agent, Jason Buchanan, acting on an anonymous tip to the FBI, found a climate-controlled horse trailer on a site where Ray was believed to be hiding assets. The property owner said Ray and Jimmy Fowler, a former employee of hers, had asked him to store the trailer for them. Fowler told investigators that Ray had given him the trailer for work done by him. However, the tags on the trailer showed it being registered to Ray’s Dream Cross Ranch. He also investigated a 100-acre ranch in Wise County that Ray’s father was negotiating to purchase. The property owner; however, said he had dealt mostly with Ray. Buchanan said there were about 50 horses, which the property owner said were Ray’s; a tractor; two portable trailers, pipe fencing and four portable horse shelters on the property. Fowler identified the shelters as having been at the Dream Cross Ranch, as well as the fencing. Wise County Sheriff David Walker had indicated to Buchanan that the transfers were made just after Ray’s indictment. According to the Star Telegram article, the U.S. Attorney’s Office also identified numerous other assets and properties titled to Ray, including five houses in Florida valued at almost $800,000. And while testifying in court on Friday, Fowler claimed he now owned all of Ray’s horses, which prosecutors estimate to be “dozens.” Judge McBryde said that the Inn’s owners might have to spend millions to try to recover the money which is more than likely in the names of some of Ray’s friends, relatives and associates. But most of Ray’s friends and associates knew little about her. In an interview with several of her employees, friends and associates after her arrest, no one interviewed knew what her parents’ names were or what they did. No one knew who she worked for in Florida or that she had gotten fired – and they certainly didn’t know she had gotten fired for embezzlement until an article came out on June 21, 2007 in the Wise County Messenger. A former employee, Jackie Bargstedt, called her a good boss, and even on the naïve side, as she was taken advantage by contractors, electricians and plumbers when she was building her Dream Cross Ranch. Bargstedt said the only reason she left was that she could not get along with Ray’s ranch manager Ed Cridge. Ray’s first horse trainer was well-known reining trainer Clint Haverty, Krum, Texas, whose wife, Liz, told the Wise County Messenger, that Ray was shy and naïve when it came to horses – sometimes paying three times what the horse was really worth. She said she “threw money around” in the horse industry, attracting a lot of attention. That relationship also ended when she hired Cridge, who had been working for Haverty, as her trainer. In 2003, Ray decided she wanted
to try cutting and hired trainer Terry Hollis, Millsap, Texas,
who trained and rode horses for Ray for about four years and taught
her how to ride cutting horses. He said she was “great to
work with,” but added that their relationship was strictly
professional and they never talked about her personal life or
money. Hollis said he sold a couple of horses for Ray a couple
of days before she was jailed and even though he deposited his
commission check in his bank, by the time it got to Ray’s
bank, the account had been frozen and he was out the money. PLAINTIFF SUFFERS SETBACK IN WHITMIRE VS NCHA By Glory Ann Kurtz Judge Lowe also ruled that jurors will not be allowed to consider if a settlement agreement was made between the NCHA lawyer and Clark Brewster, Whitmire’s prior lawyer, regarding Whitmire being able to regain her non-pro status if she accepted a six-month probation and gave up her amateur status. Ray Whitmire’s membership status has not yet been addressed by the judge. On Feb. 4, 2008, a special NCHA Committee appointed by Executive Director Jeff Hooper, upheld the NCHA Executive Committee’s decision to suspend Whitmire’s membership by a 6-1 vote. Ray Whitmire sought a declaratory judgment from the court as to whether the NCHA had the right to suspend his membership for supporting his wife. Whitmire did not request any damages in his claim. NCHA lawyers are using Article II in the Constitution to suspend Ray Whitmire’s membership. Article II says “..membership may be terminated or rejected by the Executive Committee or Board of Directors for cause detrimental to the interest of the Association or to its programs, policies, objectives or the ‘harmonious’ relationship of its members …” Whitmire’s lawyer, James Walker, claims the rule is “ambiguous” at best and has asked the Court to construe it against the NCHA given the fact the association drafted the Article. Judge Lowe said he would rule on Ray Whitmire’s membership at a bench trial to be conducted on a future date. The rulings substantiate the NCHA’s claim that a non-profit private association can make their own rules and enforce them, without intervention from the court. Walker had argued that there is a “so long as” exception, stating that the association must enforce their rules fairly and equally, must afford the members basic due process must not have rules that are illegal and must use common sense in enforcing the rules. However, a jury will be allowed to consider whether Whitmire should receive compensation because of “false imprisonment” and “intentional infliction of emotional distress” claims made by Lainie Whitmire as a result of events during the 2004 NCHA Futurity, where she claims she was locked in a room and browbeaten in the presence of four NCHA officials: Hooper, NCHA lawyer Eldridge Goins, then President Don Bussey and Show Director Dave Brian. Also, the Court upheld and entered a final ruling disqualifying Goins as trial counsel for the NCHA. As a result, Goins cannot represent the NCHA in this case during the trial because he may be called as a witness. Walker has argued that State Bar of Texas ethical rule 3.08 does not allow Goins to serve as both a lawyer for the Defendant and a witness at trial. Walker, speaking for Lainie Whitmire, has previously complained that his client has incurred a substantial amount of attorneys’ fees and costs associated with Goins violation of this ethical rule. Walker has even pointed out that the NCHA has likewise incurred a good amount of fees and costs as a result of what Walker has previously called Goins “stubborn insistence” on violating this rule. The judge has not finally ruled on the Whitmires request for sanctions but has asked that they provide him with the actual video clips of the deposition conduct the Whitmires want to show the jury as a punishment for the NCHA’s conduct through their witnesses and the conduct of their lawyers during depositions. Lainie Whitmire is seeking this, along with an as yet unidentified amount of monetary sanctions, because the NCHA witnesses and their lawyers are alleged to have acted improperly by evading proper questions and when the NCHA attorneys repeatedly instructed several of the NCHA witnesses to not answer multiple questions during the depositions. Lainie Whitmire has also asked the Court to approve and read to the jury an instruction to the effect that the conduct they are seeing on the DVDs is in violation of the rules and is being shown as a punishment for that conduct. When asked to comment on
the current situation, Walker said they are “considering
their options and will proceed in a manner consistent with their
rights under the rules and state law.” GOINS STRIKES OUT DURING HEARING By Glory Ann Kurtz During a close to five-hour, emotional court hearing for Whitmire vs NCHA, held Friday, Feb. 22, the plaintiff Lainie Whitmire hit a homerun on two major issues. Before the day was over, 236th District Judge Tom Lowe had ruled against the NCHA's Summary Judgment request to dismiss the case and they struck out again when Lowe ruled that NCHA lawyer Eldridge Goins cannot participate as the NCHA attorney at the trial set for March 6 because he could testify during the trial. The Plaintiffs also made it to third base with another motion made by their attorney, James W. Walker of Walker & Sewell, Dallas, Texas, who filed an Emergency Motion to Compel and Motion for Sanctions on Jan. 31. In the Motion, Walker requested sanctions on NCHA attorneys for interferring with his attempts to take pre-trial depositions. Although the judge did not rule on the sanctions, he did ask Walker to submit all of his evidence regarding it so the defendants could see it prior to the trial. Video clips were shown in the court room of several major witnesses being deposed, with the NCHA lawyers telling them not to answer a majority of the questions. NCHA lawyers objected to two witnesses that were on the list to testify during the trial, and Walker explained the importance of their testimony; however, Judge Lowe did not rule on the NCHA's request. The witnesses in question were a polygraph expert and Whitmire's trainer Tommy Marvin. However, Judge Lowe did order Whitmire and the NCHA, as well as their attorneys, to participate in a court-ordered mediation session on Monday, Feb. 25, to try to settle the case before it heads to the courtroom on March 6. NCHA'S
REQUESTED SUMMARY JUDGMENT DISMISSAL: Goins contended that proper procedures were taken and that Whitmire was offered appeals, thereby following their rules. Goins pointed out that she had signed the application, in which she agreed to abide by the rules. He also claimed that Whitmire didn't exercise her right to appeal. Walker's law partner, Dan Gus, answered the allegations by stressing that private associations cannot enjoy immunity from prosecution when they participate in illegal acts and that the NCHA failed to comply with their own rules. He said that the NCHA application is a two-way street and the NCHA had to fulfill their part of the bargain. Gus said that, during NCHA Executive Director Jeff Hooper's deposition, Hooper said that Whitmire had violated Rule 37 and 38, which requires a complaint be filed with the NCHA office, along with a $50 fee. No such complaint was ever filed. Gus also said that rule 38 says that a violation must be proven by a preponderance of the evidence and that the burden of proof set forth in the rule is on the NCHA, not the member like Lainie Whitmire. At his deposition, Hooper changed his testimony and concluded that it was not a rule 37 infraction but was addressed under Rules 8 and 9 on an issue of eligibility, which places the burden on the member to prove their innocence ... in other words the accused is guilty unless they can prove they are innocent. She had to prove a negative - that she was NOT a professional trainer and did as much as any person could reasonably be expected to do. In an attempt to meet their arbitrary requirements, Whitmire's lawyers pointed out that she had brought to the hearing a polygraph test she had passed; a professional trainer who said in his opinion, she was definitely not a trainer, and her own testimony and that of her attorney who was himself an NCHA member. After the hearing, she provided notarized statements from individuals whom the NCHA said had given her checks in payment for training. The signed statements said that to their knowledge, Whitmire had never received remuneration for training horses. Gus admitted Whitmire had raced another person's horse in a barrel race, and won money, which she kept - which is legal under NCHA rules, and referred to depositions of NCHA Past President Don Bussey, current President Bob Mayfield and Non-Pro Committee member Gayle Karanges, who said there is a definite difference between training and showing. Gus also told how they had repeatedly requested that Whitmire be given an audience with the Executive Committee, with Goins saying, "It's not possible." NCHA lawyer James Morris also requested Summary Judgment on two other issues - an alleged binding oral agreement, which superseded a letter from Goins, which was made between Clark Brewster, Whitmire's former lawyer, and Eldridge Goins, as well as a false imprisonment charge. On the false imprisonment charge,
Morris said the Plaintiffs could not establish that the imprisonment
in a room behind the announcer's stand during the 2004 NCHA Futurity,
was intentional. He contended that in In response, Gus said that there was "willful intent to detain" as Dave Brian had asked her to come into the room, then he closed and locked the door and stood between Whitmire and the door. She was then threatened with immediate revocation of her membership (even though Goins and Whitmire’s lawyer had agreed she had until January to prove her innocence), as well as her entry in the show going on - where she was to compete in the Amateur competition in the next bunch of cattle. Her husband was also excluded from the room despite repeated attempts to enter. The alleged oral agreement included
the fact that if Lainie accepted a six-month suspension of her
membership and gave up her Amateur status, she would be reinstated
as a Non-Pro member. A written letter from Goins to Brewster did
not say that; however, Brewster claimed that the oral settlement
agreement he had reached on other terms is a typical Morris said that Goins had no
authority to make such an agreement, as it would have had to be
ratified by the Executive Committee, who are the only ones who Gus pointed out that the written agreement sent to Brewster from Goins left no space for Brewster's signature, and that when Brewster had called Goins to be assured that their oral agreement was still in place, Goins said, "Yes." Whitmire had even reiterated the conversation between Goins and Brewster to Susan Marvin at roughly the same time, telling Susan that Brewster had assured Lainie that such an oral agreement between lawyers was customary. Gus also argued against their lawyers saying that Goins didn't have the authority to make such an agreement as he had negotiated for the NCHA on previous deals and acted as a representative of the NCHA throughout the dispute. Also brought up was Don Bussey's testimony where in a deposition he said there was a memo referring to Goins negotiating the agreement. Goins spoke up saying there was no such memo and Henry Wehrmann said the memo had been destroyed. The judge asked that the NCHA produce the memo or provide information of when, where, how and who destroyed it as the Plaintiffs had a right to that information. PLAINTIFF'S MOTION
TO DISQUALIFY Morris gave a personal reference for Goins saying he had practiced with him for 25 years and Goins had been his mentor. "I find the Plaintiff's lawyers treatment of him offensive," said Morris. He continued that in only extreme circumstances is a lawyer disqualified and a client has the right to the counsel they want. The judge ruled that Goins could not serve as the NCHA lawyer on this case. MOTION
FOR SANCTIONS: Walker showed video and audio clips which portrayed the NCHA lawyers instructing those being deposed to not answer questions. Walker suggested that the sanctions should be that the jury be allowed to see and hear the video/audio clips, with instructions being that most of the answers were stopped because it would do damage to the NCHA. The judge did not rule on the issue but asked Walker to submit all of the clips he wanted to show to the jury, along with his proposed instruction to be read to the jury. Although there is a possibility the parties could reach an agreement through Monday's imposed mediation, if the mediation does not resolve the dispute the Judge made it clear that the case will proceed to trial on the entirety of the Whitmire's claims on March 6. NCHA’S MOTION TO COMPEL HEARING HELD IN WHITMIRE V NCHA COURT CASE SPARKS COULD FLY IN HEARING SCHEDULED FOR FEB. 15 Feb. 9, 2008 –
Fort Worth, Texas The NCHA had requested attorney fees information, along with the fee agreement between the Plaintiff and her lawyer. In response, Walker said that it was premature to provide such information and suggested that the issue be taken up based on what the jury does with the case. “We don’t know if the Court will wish to award fees depending on the outcome at trial," said Walker. The jury trial is scheduled to start on March 6. Also, the defendants demanded that all background and detailed information be produced on the $130,000 devaluation of Whitmire's cutting horses due to the NCHA taking away her Non-Pro cards and the $30,000 loss in prize money, including all expenses she would have incurred as a result of showing. Walker responded that he has produced everything the horse appraisal expert had given him and delivered it to the defendants two days ago. Judge Lowe said that the defendants were entitled to know what damages had been incurred and to what extent, and how the plaintiffs had come up with the figures, requiring the Whitmires to have their damages expert provide the means he used to calculate Lainie Whitmire's damages. The NCHA next requested the production of all of Ray and Lainie Whitmire's recent tax returns from 2002 through 2007. Judge Lowe said that no tax records would be needed to prove income received. Walker stated that he had produced Laine Whitmire's tax records during the time of question of her status. Also requested by the Defendant was a piece of correspondence between Clark Brewster and Lainie Whitmire dated April 13, 2005. The NCHA claimed that this letter is relevant to the agreement between Brewster, who is Whitmire’s previous lawyer, and Goins, where Goins orally promised to let Whitmire have her non-pro card and NCHA membership back following a six-month suspension. The Defendant felt the letter was a key to the claim binding the oral agreement. Walker responded, saying that the defendants had not sought the document in court before and Brewster had deemed the letter part of his “work product” which is privileged by law under lawyer/client relations. He said that neither he nor Lainie Whitmire have a copy of the letter. Walker said he assumed the letter was drafted, prepared but never sent – at least they have no evidence that it was sent to her. Judge Lowe granted the request by the Defendants that the letter be produced. Judge Lowe then directed Walker to argue the Plaintiffs' Emergency Motion to Compel and for Sanctions that he filed with the court on Jan. 31. Mr. Wehrmann, as the NCHA's counsel, objected to hearing the Motion because he claimed they were four hours shy of the three days' notice required under the rules. It was ultimately decided that the Emergency hearing would be reset to a later date. The Court also heard the NCHA's motion to require that the Whitmires post a bond to secure the court costs being incurred by the NCHA as a result of the discovery and depositions being taken. Morris complained that the Plaintiffs took as many as 13 depositions and that the fees and costs were "running the dollars up." He said, "One Plaintiff, Lainie Whitmire, has no money. They say all the claims are Lainie Whitemire's and Ray Whitmire has only one claim. How do we know she can pay the costs if she loses?" Morris then asked for security for costs posted because Lainie Whitmire is unable to earn money and all the money is coming from Ray Whitmire. Judge Lowe said that the only time this is ever done is if the Defendants can show inability to pay by the Plaintiff – and that would only be done under special circumstances. In response, Walker handed the judge a summary chart of the 16 separate depositions taken to date in the case, where the Plaintiffs had paid the costs associated with all but three and had paid as much as $20,000 in video and other costs. Morris said the NCHA’s transcript and video costs were also mounting. The Court decided to defer a ruling on this motion until a later date. Since some hearing notices and filings are not always getting to the opposing counsel in a timely fashion, the judge asked that any further filings made with the court be submitted simultaneously to the opposing counsel by fax, computer or hand delivery. Walker also requested permission to use a “substitute service” on David Kleck, Lainie Whitmire’s former husband, who is living in Houston, saying they had made a diligent effort to have him served with a subpoena for his deposition, but were unable to have him served after repeated attempts. The substitute service would require only that the process server tack the subpoena on the door or leave it with Kleck's current wife. However, the Court asked that Mr. Walker continue his efforts to secure personal service on Mr. Kleck. The discovery date cut-off will be Feb. 20. FEB. 15 HEARING
TO BE IMPORTANT The NCHA’s motions for summary judgment are also set at this same time. The NCHA has filed two motions asking the Court to dismiss Lainie Whitmire’s claims. One NCHA motion asks the Court to dismiss all but the breach of oral promise claim, involving the agreement between Brewster and Goins, and the false imprisonment claim, saying the Court cannot interfere with the NCHA in how it handles its members because it is a private association that followed all of its rules in its dealings with the Whitmires. The second NCHA motion asks the Court to dismiss the oral promise claim and the false imprisonment claim saying there is no evidence to support either claim and they should be dismissed. Finally, the Whitmire motion seeking to disqualify Eldridge Goins as a lawyer on the case for the NCHA has also been set for hearing. This is the motion that asks the Court to remove Goins from the case as a lawyer because he is also a witness in the case. The NCHA has asked the Court to continue as many as three previous hearings on this motion and discovery has even been taken just on this issue. Walker has stated his belief that both the Whitmires and the NCHA have likely spent more than $100,000 in attorneys’ fees and costs between the two parties solely as a result of Goins’ insistence on staying in the case when his status as a witness has been obvious for more than a year. In fact, when Goins deposition was recently taken as a witness in the case, the NCHA did not even object based on the fact he is a lawyer in the case. The Whitmires claim Goins is violating the State Bar of Texas Disciplinary Rule 3.08 which does not allow a lawyer to act as both a lawyer and a witness in the same case. This motion has been pending for more than a year and it appears it will finally be resolved this Friday. WHITMIRE LAWYER FILES EMERGENCY MOTION DUE TO OBSTRUCTION OF DISCOVERY EFFORTS NCHA COMMITTEE MEETS REGARDING
TERMINATION OF By Glory Ann Kurtz In the 22-page motion, which includes excerpts from three depositions, Walker is accusing the NCHA counsel Henry S. Wehrmann with the law firm of Stradley & Wright, Dallas, Texas, of engaging in conduct that is in violation of the Texas Rules of Civil Procedure, saying he has impaired Whitmire’s ability to obtain discovery to which she is entitled. Attached to the motion are three exhibits which include the complete depositions. Walker said the misconduct has not been limited to isolated infractions but a pattern and practice of obstructing discovery by the defendant’s counsel, citing depositions of past NCHA President Don Bussey, where on at least 25 separate instances, Bussey refused to answer questions after instructions from Wehrmann. Also, during the deposition of former chairwoman of the NCHA Non-Pro Committee Catherine “Bucki” James, Eldridge Goins was present and interrupted the proceedings to make improper comments to the Plaintif’s counsel and instruct the witness how she would answer certain questions, even though he was not representing James. And during a continuation of the deposition of Eldridge Goins, as a fact witness in the case, Wehrmann again resorted to inappropriate objections and instructions not to answer questions. The depositions were taken by Walker and Dan Gus. Walker is asking the court for an immediate hearing to deter the defendant from further obstructing efforts to obtain discovery. Additionally, the plaintiff is requesting a full spectrum of sanctions permitted under Texas Rule of Civil Procedure 212.2(b) to 1) deter future misconduct, 2) punish the defendant for its past misconduct and 3) redress the harm the plaintiff has suffered from the misconduct. He is asking the court to 1) limit their objections during depositions to what is allowed under the rules, 2) limit their instructions not to answer only to those circumstances in the rules, 3) refrain from making inappropriate comments to the Plaintiff’s counsel and 4) properly advise the witnesses to answer the questions posed to them without unreasonable delay or argument. Also, today, Feb. 4, a hearing
is being held by an NCHA-appointed committee regarding the termination
of Ray Whitmire’s membership. Ray Whitmire joined his wife’s
lawsuit by filing a declaratory judgment action when he was told
they were going to revoke his membership. Whitmire recently renewed
an offer to the Committee that he previously made to the NCHA,
where if his membership isn’t terminated, Whitmire will
dismiss his declaratory judgment action and withdraw from the
pending suit, except for his financial support of his wife. Another piece of evidence that has surfaced is an e-mail dated July 18, 2007 from Janie Strotheide, an employee of the NCHA, to lawyer Dan Churchill of Churchill & Churchill, P.C., Moline, Ill. Mr Churchill has been acting as legal counsel for the Whitmires on this case and serveral other legal matters. Ms Strotheide refers to the 2004 NCHA Futurity when she saw Lainie walk out of a room where she had been taken by Dave Brian to meet with at least three other men - Eldridge Goins, Jeff Hooper and Don Bussey - and locked the door behind her. She said Lainie was in tears and white as a sheet, as she told Strotheide how they told her she would not be allowed to cut in the non-pro class she was entered in as she was breaking the rules (even though her former lawyer Clark Brewster, Tulsa, Okla., had made a deal with Goins that nothing would be determined until January.) Janie noted that Lainie Whitmire had told her at the time that for a while during the time she was in the locker room alone with those four men, she felt "really scared." Strotheide's e-mail continued, “I will be more than happy to help Lainie and Ray, and ultimately the entire NCHA membership with this – the sooner some people are out of management positions the better off the organization will be.” Click on the following link for a copy of the Plaintiff’s Emergency Motion to Compel and Motion for Sanctions – along with three exhibits which include the depositions of Don Bussey, Catherine “Bucki” James and E. Eldridge Goins Jr. which was filed in the District Court of Tarrant County on Jan. 31. |
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MEMBERS GIVE POSITIVE SCORES TO CONVENTION; TWO NEW PROPOSALS GET COMMITTEE “GO AHEAD” By Glory Ann Kurtz The three-day NCHA Convention closed on Sunday, June 22, with a Board of Directors Meeting, as well as the final Membership meeting, where each committee gave their report of what they had accomplished over the past couple of days. The Convention was held June 20-22 at the Hilton DFW Lakes, Grapevine, Texas. Bronc’s proposal to eliminate the term “Amateur” and divide the Non-Pro by money earned was presented at almost every committee meeting; however, it was not approved by a single committee. Jim Armstrong, chairman of the Amateur Committee, even went so far as to ask Bronc to withdraw his proposal, which Bronc refused to do and said that the decision would be made by the Executive Committee. There was no announcement of when the Executive Committee would meet and it will be their decision to approve or disapprove the proposal. However, most of the committees agreed they would work with Bronc to tweak the proposal and possibly bring a revised version up during next year’s Convention. Most felt it would be a huge mistake for the Executive Committee to pass the proposal considering the controversy that surrounds it. After months of discord by some of the members, many were surprised at the amount of information that was available for them at the meetings, as well as more in-depth financials than had previously been presented. Even Terry Strange, the chairman of the Finance Committee, said that the object of the report and slide show was because there needed to have more “transparency” than there has been in the past. “We’re getting to the size where we need to treat ourselves like a major league enterprise,” Strange said when he was addressing the members in the Friday Membership meeting. However, many members said that they felt the NCHA still had a long way to go to be transparent. During the final NCHA Membership meeting on Friday, Strange said that the audited financials will be condensed and be in the next Chatter and the entire 20-plus page audit report will be on the NCHA web site this week – as will as the recommendations from all of the committees. Two new, controversial proposals came up during the different committee meetings at the Convention, including a new World Finals proposal made by President Elect Chubby Turner. The proposal points out the fact that the NCHA World Finals, currently being held in Amarillo, is not working and is losing money; therefore he suggested the Finals go back to being the top 15 Open horses and the top 15 Non-Pros – showing during the NCHA Futurity. The go-rounds, including a non-working finals, would be held in the Watt arena during the first two weekends of the NCHA Futurity in Fort Worth. He suggested that a big awards party for the champions of all the divisions be held during the Futurity in the Exhibit Hall. Committees, where the proposal was brought up, gave it the “go ahead.” The other proposal was called the “Tour to the World Finals” and was presented by Executive Committee member Ernie Beutenmiller Jr., who said that a task force had been working on it. He said the object was to promote the NCHA to a broader spectator base by having eight regional weekend shows with a large amount of added money. A major sponsor is needed and the Tour is designed to start in 2010. “With eight sites for the tour, this will give sponsors a broader base,” said Beutenmiller. Both proposal have some merit; and were sanctioned by the committees where they were brought up. However, the weekend cutters who are not vying for Open and Non-Pro titles feel they are being left out since they will no longer have a finals. Also, some felt that in today’s slow economy and high gas prices, it would not be the time to start a new “hauling” event. Some were also upset how the proposals were kept from them all year, so they were not able to have input into them, and then brought up in committee meetings at the Convention. “If Bronc would have kept quiet about his proposal and then brought it up in a few select committee meetings at the Convention, it would have also passed,” said one Amateur. Obviously missing were the NCHA lawyers, as well as representatives from their largest source of profit - Western Bloodstock. There were no questions asked about of any lawsuits that are currently filed against the NCHA – nor did the financials give a clue how much it had cost the NCHA to fight them so far. They did announce Executive Director Jeff Hooper’s annual salary (not bonuses or commissions, the length of his contract or the fact he may have a golden parachute) and then explained how this was “confidential information” and displayed a confidential agreement on the video screen. However, there were no agreements available to be signed nor was there one on their web site. It was announced that next year’s NCHA Convention would be in the Denver, Colo., area. Those readers of this site who signed up for the E-Newsletter received daily updates on what went on at the Convention. Click on the links below to get the detailed reports from days 1 and 2 of the Convention and the final day’s Board of Directors and Membership meetings. Day
1 notes>> COPYING OF RECORDS TO BEGIN JUDGE IN GAUGHAN AND SANDERS V. NCHA ASKS OPPOSING LAWYERS TO “WORK TOGETHER” By Glory Ann Kurtz June 3, 2008 –
Fort Worth, Texas Cosby also ruled to dissolve a temporary restraining order obtained from a different judge by the Plaintiffs on May 21, 2008. The judge said there was no evidence that the association would destroy any of the requested documents. Cosby also issued an NCHA-requested protective order which would keep some of the requested records confidential, saying he wants the lawyers to work together in drafting the order so as to take the NCHA’s concerns about confidentiality into account; however, he did say that if there is a disagreement, he will look at the documents and make a decision as to whether they should be kept confidential. Cosby said he was on the Board of two non-profit associations and he understood the importance of confidentiality. THE
DISAGREEMENTS: Referring to the protective order sought by the NCHA, Morris said there was a massive amount of information requested, including 12 file drawers of documents on contracts between the NCHA and third parties alone. He claimed the protective order was needed to keep sensitive information in these third party contract files protected. James Walker, the lawyer for Paula Gaughan and Dean Sanders, said that Gaughan and Sanders had written two letters to the NCHA, dated April 21 and May 9; however, their responses from current President Bob Mayfield and incoming President Bronc Willoughby, produced no results and included such words as “the stated purpose for the records was broad and ambiguous” and the financial records they seek “may not be germane” to the stated purpose. The Plaintiffs were asking for bank account information, payroll records for certain “key” or highly compensated employees, compensation agreements, vendor information and legal counsel financial information. They are also seeking an oral deposition from a representative of the NCHA about the NCHA’s document retention policies, the manner in which their financial records are maintained and where the requested documents are located and the identity of the third parties with whom the NCHA has contracts. Walker argued that this basic information is necessary for his clients to be able to evaluate whether and to what extent the NCHA has ultimately complied with the legal obligation to turn over all of the requested financial records. Walker said that one of the letters from Bob Mayfield and Bronc Willoghby invited his clients to contact Terry Strange, the chairman of the Finance Committee, saying Mr. Strange would help them with the information they were requesting. Walker said his clients sent a letter by certified mail to Strange on May 9; however, to date, no response has been received. When close to six weeks went by without any results, the duo decided to file the lawsuit under Section 22.351 of the Texas Business Organizations Code. The Code says, “A member of a Texas Corporation, on written demand, stating the purpose of the demand, is entitled to examine and copy the books and records of the corporation relevant to that purpose.” They also initially secured a temporary restraining order forbidding the destruction, deletion, modification or alteration of any of the requested financial records, but this was the order the NCHA fought successfully to dissolve. Walker argued that Section 22.351 of the Business Organizations Code, when drafted by the state legislature, does not impose any requirement that the requested financial records be kept confidential. Walker also objected to the NCHA’s refusal to allow his clients to share any information or documents they secure from the NCHA with other NCHA members in good standing. “The NCHA shouldn’t be limited to showing the records only to the members that are willing to file suit to enforce their rights under state law,” said Walker. According to Equi-Stat, Gaughan and her husband Michael, have produced aged events at their Las Vegas hotels, including the Gold Coast, Sun Coast, South Coast and the South Point, twice a year for the past 16 years, paying out over $20.3 million to contestants and over $609,000 to the NCHA. Sanders, the former CEO of Wal-Mart, non-pro cutter and breeder, has been involved in the management of the Breeders Invitational for the past five years. The stallion-funded annual cutting event has paid out over $8 million, with approximately $3.2 million being added money, since 2003. It is estimated that the fees received by the NCHA from this event would be close to a quarter of a million dollars. After the ruling, Gaughan and Sanders said this is not the first time that they had been involved in requesting information from the NCHA. About four years ago, Gaughan and Sanders were members of the Owners’ Committee, which included a group of about a dozen cutting horse owners who went to the NCHA as a committee requesting financial records. “We wanted to know where the money came from and where it went,” they explained, “but we never got anything – that is except a copy of the financial statement that is published in the Chatter, which doesn’t tell members what they need to know – and a pie chart” Gaughan and Sanders feel that there are tough economic times ahead. Even the AQHA is lowering the number of points necessary to attend their World Show, making it easier on the contestants. With entries down at several of the major NCHA-approved and sponsored events, they added that they just want to make sure that the management of the NCHA isn’t doing something that would be considered “wasting the association’s funds,” since it has been impossible to get any in-depth financial records for years. By requesting and inspecting the NCHA’s financial records, they want to make sure the association is making the best use of every member dollar for the benefit of all members. THE
RECORDS: Morris said it would take a week or two to get the records together before they could be inspected and copied. Walker and Morris had evident disagreements throughout the hearing, with Walker saying that Morris should be more concerned about representing the interests of the members of the Association – instead, Walker complained, Morris is more interested in representing the rights of third parties (such as employees and lawyers), which appear, in the eyes of the NCHA’s lawyer, to trump the rights of members. “We’re not asking
for damages,” said Walker. His clients only want to inspect
and copy the financial records consistent with their legal right
to do so. He added that in good faith the Plaintiffs had changed
their payroll information request to include only “key employees,”
and that the NCHA could delete the social security numbers and
the home addresses of those employees. He also said the Plaintiffs
were willing to pay the costs of copying the information. “If you can’t agree on something, just get back to me,” said Judge Cosby. OSCAR BLACK PLEADS GUILTY TO ONE COUNT OF MAIL FRAUD SENTENCING TO BE HELD SEPT. 2 May 20, 2008 –
Dallas, Texas Black was released on his own recognizance after agreeing to restitution to his victims, which required him to pay $3.6 million to 17 individuals, including $590,000 to the First National Bank Weatherford, where he was serving on the Board of Directors. Sentencing is scheduled for Sept. 2 in U.S. District Judge Lindsay’s Court. Black faces a maximum sentence of 20 years in prison, a $250,000 fine and restitution. During the course of a
scheme, where Black offered investment opportunities to his acquaintances
– including several individuals in the cutting horse industry
– a guaranteed 12 percent annual rate of return. Black mailed
investors fictitious monthly account statements that falsely represented
their investments were appreciated, when, in fact, he and his
OB Cattle Company, were going broke. It was later discovered that
Black owed the First National Bank of Weatherford $590,016.03,
the Wells Fargo Bank, $3 million and his investors a total of
$3,137,230.78. Assistant U.S. Attorney Jay S. Weimer is prosecuting
the case. OSCAR BLACK CHARGED WITH ONE COUNT OF MAIL FRAUD ARRAIGNMENT SCHEDULED FOR MAY 20 IN FORT WORTH May 13, 2008 –
Fort Worth, Texas With only one count of mail fraud, it was obvious that Black had entered into a plea agreement with officials, following a lengthy FBI investigation. According to an article by Galen Scott in the Weatherford Democrat, the plea agreement signed by Black requires him to pay $3.6 million in restitution to 17 individuals, including $590,000 to the First National Bank Weatherford, where he was serving on the Board of Directors. The charge from the United States Attorney charged Black, who owned and operated OB Cattle, a cattle business located in the Northern District of Texas, with offering investment opportunities that guaranteed investors a 12 percent rate of return on their investments. Between Jan. 1, 2000 and April 1, 2007, Black devised a scheme to defraud investors and to obtain money and property from investors by false and fraudulent pretenses, representations, promises and omissions. Black deposited the money initially into a bank account but eventually discovered he could not deliver the rate of return he guaranteed without placing the investors’ money in riskier ventures, so he began using the investors’ money to pay expenses and provide capital for OB Cattle. Eventually he began losing money and was unable to satisfy his financial obligations to investors. He knew that if he told the investors the truth, they would not invest any more money so he falsely represented to the investors that their investments had appreciated, when, in fact, he had used their money to pay expenses relating to his depreciating cattle business. He mailed investors fictitious monthly account statements, which indicated their accounts were appreciating. As a result of his fraudulent representations and omissions, investors lost a total of $3,137,230.78. Some of the investors were cutters, including Clay Johns, Weatherford, Texas, and Bozo Rogers, Lipan, Texas. Also some well-known businessmen had invested heavily. Filing lawsuits were James Vangilder, Leo Fikes and Phillip Schutts Land & Cattle Company. An injunction petition was filed by Dave Capps. Several banks sued him including the First National Bank Weatherford and Wells Fargo. Mail fraud is punishable by a maximum of 20 years in the federal penitentiary. According to the Weatherford Democrat article, even though a judge will ultimately decide Black’s sentence, prosecutors agreed to recommend ‘the low end’ of the relevant sentencing guidelines in exchange for Black’s cooperation. Black is being represented by Tim Evans, a prominent Fort Worth criminal defense attorney, who claims he started representing Black shortly after Weatherford police executed search warrants at Black’s home and business in March 2007. According to Evans, Black agreed to plead guilty a long time ago. “A lot of times people don’t want to handle it that way; they don’t know what’s going to happen so they may want to go to trial and see how they do,” Evans said. “Oscar never wanted to do that.” “He’s hurt a lot of people and he respects and likes and he believed respected and liked him,” said Evans. “We’re trying to make the best of a bad situation.” Following the May 20 arraignment, a sentencing hearing will be scheduled. Evans doesn’t expect Black will go to jail while waiting for sentencing, due to his cooperation with law enforcement authorities. Even though Evans said Black had left Weatherford, he was living in the Metroplex. He didn’t address his employment status and he also didn’t address how or when Black was going to repay $3.6 million. He did, however, point out that Black has not declared bankruptcy. Black filed for bankruptcy more than 25 years ago in Forrest County, Miss., when he owned a different cattle company, but devised a similar investment scheme. Although his bankruptcy petition was discharged in 1982 and subsequently closed, Black told a Mississippi newspaper that none of his creditors got the amount of money they were owed. In fact, a man who was a friend of Black’s reportedly lost $400,000 in the ordeal was sentenced to 17 years in prison (and died there) for conspiring to have Black killed. On May 26, Black had a complete liquidation of his equipment. His home was scheduled to also be auctioned off; however, the First National Bank Weatherford, foreclosed on the house and 40 acres, so they could not be auctioned off. Prior to the auction, Glade Knight of Slate River Ranch in Weatherford, bought 1,052 acres of the land and buildings Evans also pointed out that “restitution in a federal system is very similar to owing the IRS money – I mean, they don’t trifle with it,” he said. ELDRIDGE GOINS RESIGNS AS NCHA COUNSEL By Glory Ann Kurtz The resignation comes at an inopportune time, just prior to the June NCHA Convention to be held June 20-22 at5 the Hilton DFW Lakes in Grapevine, Texas, where the newly elected Vice President will be named. The Whitmire case, which was filed by Lainie Whitmire against the NCHA on Oct. 10, 2006, is now on appeal in the Tarrant County court system. Whitmire, Sallisaw, Okla., and her husband, Ray, were lifetime members of the NCHA; however, both of their memberships have been suspended.. Lainie’s amateur/non-professional status was suspended after an unnamed person had notified the NCHA that Lainie had previously trained barrel horses while married to David Kleck, a Southlake, Texas, veterinarian, from Dec. 31, 1993 through April 17, 2003. Ray’s membership was suspended on Feb. 4, 2008, when the NCHA Executive Committee determined he was violating the rules of the association by helping his wife pay her legal bills. What followed were hundreds of pages of allegations, exhibits and depositions of the main characters, filled with charges of defamation, verbal harassments, deceit, fraud, retaliation by an ex-husband and his lover, false imprisonment, a side agreement, several attempted settlement communications never presented to the NCHA Executive Committee and charges of conduct and prejudice by a lawyer and his disqualification by Judge Lowe of the Tarrant County 236th District,as the NCHA counsel in the case, since Goins was a material witness in the case. Huge legal fees have been incurred on both sides. During a court hearing held Friday, Feb. 22, 2008, Judge Tom Lowe ruled against the NCHA’s Summary Judgment request to dismiss the case and Lowe also ruled that NCHA lawyer Eldridge Goins could not participate as the NCHA attorney at the trial because he could testify during the trial. However, during a March 6 hearing, Judge Lowe reversed his original ruling and this time ruled that the NCHA had a right to suspend the amateur and non-pro status of Lainie Whitmire and revoke her membership and that the subject could not be reviewed by the civil court jury. However, Ray Whitmire’s membership suspension was not addressed by the judge. The rulings substantiated the NCHA’s claim that a non-profit private association can make their own rules and enforce them, without intervention from the court. Whitmire’s lawyer, James Walker of Walker-Sewell, argued that there is a “so long as” exception, stating that the association must enforce their rules fairly and equally, must afford the members basic due process must not have rules that are illegal and must use common sense in enforcing the rules. However, Judge Lowe ruled that a jury would be allowed to consider whether Whitmire should receive compensation because of “false imprisonment” and “intentional infliction of emotional distress” claims made by Lainie Whitmire as a result of events during the 2004 NCHA Futurity, where she claims she was locked in a room and browbeaten in the presence of four NCHA officials: Hooper, NCHA lawyer Eldridge Goins, then President Don Bussey and Show Director Dave Brian. Also, the Court upheld and entered
a final ruling disqualifying Goins as trial counsel for the NCHA.
As a result, Goins cannot represent the NCHA in this case during
the trial because he may be called as a witness. Walker has pointed
out that the NCHA has incurred a good amount of fees and costs
as a result of what Walker has previously called Goins “stubborn
insistence” on violating this rule. AMATEUR COMMITTEEMAN PRESENTS ALTERNATIVE TO BRONC WILLOUGHBY’S PROPOSAL TO ELIMINATE AMATEUR DIVISION April 16, 2008 The proposal classifies everyone
as either an Open, Non-Pro or Youth rider; however, he feels Bronc’s
proposal falls short of the mark, suggesting there is no accompanying
documentation outlining the reasoning behind the proposal and
that it has a limited effect to level the playing field. Love’s
suggested proposal can be read by clicking below. COURT DENIES LAINIE WHITMIRE MOTION TO RECONSIDER JUDGE LOWE GRANTS WHITMIRE’S MOTION TO SEVER AND ABATE April 9, 2008
– Fort Worth, Texas However, Judge Lowe did grant Whitmire’s motion to sever and abate, which allows an appeal to proceed as to these two summary judgment rulings. The balance of the claims, which include false imprisonment and emotional distress, will also be abated (put off) pending the appeal. Therefore, the trial set for April 21, 2008, has been postponed. “While we respectfully disagree with the Court’s summary judgment rulings on the two breach of membership and oral promise claims, we are certainly appreciative of the court’s allowance for an opportunity to present these rulings and the related issues to the appellate court for disposition,” said Whitmire’s lawyer James Walker of Walker-Sewell.. “This will enable us to go to trial knowing the full extent of the claims that will ultimately be presented to a Tarrant County jury.” Walker said that the appeal will be in the Fort Worth Court of Appeals, where a panel of three judges will be assigned to the case – two will be on the panel and one will submit an opinion on the appeal. JUDGE TO ANNOUNCE
DECISION IN WHITMIRE VS NCHA SUIT AT MID-WEEK |
The
arraignment of Oscar Black, 58, on mail fraud charges was held
at 10 a.m. on Tuesday, May 20, in the United States District Court
for the Northern District of Texas, Dallas, Texas. During the
arraignment, held in Judge Stickney’s court, Black, Weatherford,
Texas, pleaded guilty to one count of mail fraud.