by Jeff Lowe

Judge Roger Crittenden on Monday denied a proposed $4-million offer for the remaining 20% interest in Horse of the Year Curlin from majority owner Jess Jackson.

The claim was denied during a court hearing in Frankfort, Kentucky, following an objection from an attorney representing clients who won a $42-million judgment against minority owners Shirley Cunningham Jr. and Bill Gallion related to fees they charged in a class-action lawsuit for the diet drug Fen-Phen. Andre Regard, the attorney for Cunningham and Gallion, also opposed the sale offer.

On November 17, Ric Waldman, a bloodstock adviser and consultant who managed the stallion career of Storm Cat for Overbrook Farm, pegged Curlin’s value at $20-million as an expert witness on behalf of a receiver the court placed in charge of the 20% interest. Jackson’s offer of $4-million was 20% of Waldman’s estimated value.

For Monday’s hearing, Regard had an expert witness, bloodstock agent Thomas Clark, ready to testify that Curlin is worth much more than Waldman’s assessment. Clark appraised Curlin’s value at $37.5-million on November 24, three days after Jackson announced that the four-year-old Smart Strike colt would begin his stud career with a $75,000 fee at Lane’s End in 2009.

Twenty percent of the $37.5-millon appraisal would be approximately $7.5-million.

Crittenden denied the sale on Monday before Clark had a chance to testify. 

“If both parties … who would stand to gain or lose the most object, this court does not intend to direct the receiver to accept the offer,” Crittenden said.

Instead, Crittenden instructed the receiver to simply be available for a potential private transaction. Richard Getty, an attorney for Jackson, said his client would not make any more offers for the 20%.

“We’re done,” Getty said. “I can assure you they won’t get an offer more than $4-million. They won’t get another offer.”

Regard said Gallion and Cunningham would be satisfied to retain the 20% interest.

“Our opinion is that the long-term value of the horse will far exceed what the proposed sale was,” Regard said.

Jeff Lowe is a Thoroughbred Times staff writer