Dispute over allegedly infertile stallion and unpaid €3m insurance policy comes before court
A legal row over an allegedly infertile stallion and a claim of a failure to pay out on a €3million insurance policy have come before the Commercial Court.
The dispute between the owners of the stallion and a several UK based insurance syndicates was today admitted to the fast track Commercial Court list.
The action centres around a thoroughbred stallion called Ajaya, who the court heard was assessed in 2018 by a consultant in equine medicine as being permanently infertile.
The horse's owners Rathbarry Stallions Ltd, and Kuwaiti businessman Saleh Homaizi and Imad Al Sagar claim they had taken out a policy of insurance to cover such a situation with the XL Catlin 2003, Tokio Marine Kiln 510, Novae 2007, Markel 3000 and Brit 2987 syndicates.
The owners claim the London based defendants have in alleged breach of contract failed to pay out on a policy of Bloodstock insurance entered into in respect of the horse.
In their proceedings, the owners seek an order that the defendants specifically perform the insurance contract in respect of Ajaya entitled the Stallion Permanent Total Disability Extension.
They also seek an order requiring the defendants to pay the owners a fair market value for the horse. The owners further seek damages for breach of contract, negligence and breach of duty.
The court heard in 2016 the owners insured Ajaya, for use at stud, for €3.8m with the defendants for a premium of €195,000.
An insurance extension to cover infertility was added for an additional €323,000.
The policy was amended in 2017 when the horse was leased out to Australian stud, with the result that the horse was now insured for €3.12m.
In March 2018, after Ajaya's return from Australia, there were concerns about the Ajaya's fertility. In 2017 the horse successfully covered 44 out of 63 mares in the Northern Hemisphere.
In the same year, the horse achieved 24 pregnancies from 61 mares in the Southern Hemisphere.
In the 2018 North Hemisphere season, the stallion achieved just one pregnancy from 19 mares.
Tests were carried out by veterinary experts. While the horse showed good libido his fertility had declined to the point that the stallion was non-viable in a commercial sense, but as close to total infertility as ever seen.
The owners sought payment out of the policy, but claim the defendants have declined to pay the owners their entitlements.
The defendants, while not formally refusing the indemnity, have alleged that the owners failed to comply with relevant conditions of the policy and failed to disclose all material facts.
The defendants it is also claimed have denied the horse is permanently infertile.
The case was admitted into the fast track Commercial Court list by Mr Justice Robert Haughton today.
There were no objections to the application.
The Judge was told by Cian Cotter Bl for the owners it was hoped the dispute could be resolved through mediation.
The case was adjourned and will be mentioned before the court in October.
