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Disputed dough Current, former owners stake claims to bonus moneyPosted: Wednesday June 12, 2002 7:50 PM
LOS ANGELES (AP) -- The majority owner of Kentucky Derby and Preakness winner War Emblem has filed a lawsuit seeking the $1 million bonus for the colt's victories in the Illinois and Kentucky derbies. The Thoroughbred Corp. filed the suit against The National Jockey Club, which runs Sportsman's Park, the Chicago racetrack that sponsored the bonus. The dispute centers on who is entitled to the $1 million bonus -- Thoroughbred Corp. owner Prince Ahmed bin Salman or War Emblem's previous owner, Russell Reineman, who retains a 10 percent interest. Reineman, an 84-year-old Chicago steel executive, was sole owner when the colt won the Illinois Derby on April 6. Five days later, he sold a 90 percent interest in War Emblem to Salman, who paid $990,000 in cash, according to the lawsuit. Three weeks later, War Emblem won the Kentucky Derby, which triggered the Sportsman's Park bonus. Reineman contends he's entitled to half of the $1 million. The Thoroughbred Corp. disagrees, saying that since it owned 90 percent of War Emblem when he won the Kentucky Derby, it should receive that share of the bonus. On May 30, Sportsman's Park told The Thoroughbred Corp. that it would not pay the bonus because Reineman had sent a letter claiming he was entitled to the entire $1 million. "Sportsman's Park did not provide any legal or factual reasoning or support as to why it would not pay the bonus to War Emblem's owner," the lawsuit said. "As a result, a real controversy exists between the parties." The lawsuit, filed Monday in U.S. District Court, seeks a declaration that The Thoroughbred Corp. is the rightful owner of the bonus and should be paid immediately. It also seeks to block Sportsman's Park from paying any portion of the bonus until the matter is resolved. "We feel it was inappropriate for this lawsuit to be filed in a venue outside of Illinois," George Lalich, attorney for The National Jockey Club, said Wednesday. Lalich said Sportsman's Park soon expects to receive the $1 million from its insurance company. Lalich said he will ask an Illinois federal court to intervene and bar any actions concerning the bonus. "From the very beginning of this dispute, we have encouraged both parties to try to come together on some resolution," he said. Thoroughbred Corp. attorney Neil Papiano was traveling Wednesday and did not immediately return a phone message. A call requesting comment was left at the Chicago office of Reineman's attorney, Emerson Blue. Bob Baffert, who trains War Emblem, invited Reineman to watch the colt run in the Kentucky Derby, Preakness and Belmont, but Reineman declined. War Emblem stumbled and nearly fell leaving the starting gate in the Belmont last Saturday. He finished eighth, ending his bid to become racing's 12th Triple Crown winner and first in 24 years.
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