The issue of turning over stallion certificates has led Stonewall Farm to sue Fifth Third Bank, JPMorgan Chase Bank, and Bluewater Sales in bankruptcy court in Lexington.
It’s the latest legal move in a case that began earlier this year.
The Lexington Herald-Leader reported Aug. 12 that Fifth Third Bank wants Stonewall to produce stallion-service certificates so yearlings and mares can be sold at sales in September and November. Central Kentucky-based Bluewater, as receiver, has the horses.
Sale companies require the certificates so horses can be sold.
“The court is going to have to decide if Fifth Third can sell the horses and not pay the stud fees,” Stonewall attorney John Hamilton told the Herald-Leader. “It would be a shock wave in the Thoroughbred industry if a bank could sell horses and not pay stud-fee liens.”
Stonewall and related entities owe Fifth Third Bank $14.85 million and JPMorgan Chase about $7 million. Bankruptcy cases are ongoing in Kentucky and Florida.