Kevin Moody's Cypress Creek Equine LLC is suing four insurance companies that allegedly denied mortality coverage for Cypress Creek's interest in the WinStar Farm stallion Laoban, who died unexpectedly May 24, 2021, at the age of eight.
North American Speciality Insurance Company, XL Specialty Insurance Company, Underwriters at Lloyd's of London, and Lloyd's Kentucky, Inc. are named as defendants in the lawsuit, filed in Fayette Circuit Court in Lexington, Ky., on March 21.
The complaint states that Laoban, a leading freshman sire of 2020 who moved from Sequel Stallions New York to WinStar Farm near Versailles, Ky., prior to the 2021 breeding season, was a “healthy stallion” who died “after being given vitamin and mineral supplements.”
At the time of Laoban's death, the complaint states, Cypress Creek had mortality coverage in the stallion through the defendant insurers.
However, the complaint states, “In a letter dated Aug. 4, 2021, the insurers wrongfully denied Cypress mortality coverage and therefore an actual controversy exists pursuant to KRS 418.040. The denial violated the clear terms and provisions of the policies.”
The denial letter was not included with the complaint.
The complaint alleges the denial “was alternatively based on provision(s) in the policies which are ambiguous and/or must be construed to afford coverage to Cypress pursuant to its reasonable expectations of coverage.”
Cypress Creek, represented by Escum L. “Trey” Moore of Moore & Moore in Lexington, is seeking the mortality coverage, compensatory damages, costs and attorney's fees.
Laoban, a Kentucky-bred by Uncle Mo, won the Grade 2 Jim Dandy Stakes in 2016, suffered a soft-tissue injury later in the year, and entered stud at Sequel Stallions New York in 2017 for a $7,500 live foal fee. He was second leading freshman sire in 2020 behind Nyquist, his first crop including G1 winner Simply Ravishing. WinStar jumped Laoban's stud fee to $25,000 after acquiring him for the 2021 season, and, according to Jockey Club statistics, he was bred to 126 mares prior to his death on May 24.
Laoban is the sire of the New York-bred gelding Un Ojo, winner of this year's G2 Rebel Stakes at Oaklawn. Un Ojo races for the Cypress Creek Equine of Moody, a resident of Lafayette, La.
The post Co-Owner Of Deceased Laoban Sues Insurers Over Denial Of Mortality Coverage appeared first on Horse Racing News | Paulick Report.
