Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Jury finds American Quarter Horse Association violated antitrust laws by refusing to accept cloned horses, (Aug 1, 2013)

By Jeffrey May, J.D.

Earlier this week, a federal jury in Amarillo, Texas, returned a verdict against the American Quarter Horse Association (AQHA), concluding that the AQHA violated federal and state antitrust laws by excluding cloned horses and their offspring from the association's breed registry. Although the jury found in favor of the plaintiffs, who sought to participate in the “elite” Quarter Horse market using cloned horses, no damages were awarded. The case is Abraham & Veneklasen Joint Venture v. American Quarter Horse Assn., No. 2: l2-cv-103-J.

According to the jury's verdict, AQHA violated Sections 1 and 2 of the Sherman Act and corresponding provisions under the Texas Free Enterprise and Antitrust Act. The jury also concluded that the defendant's actions caused the plaintiffs damage; however, no monetary damages were awarded to the complaining owners of cloned horses.

The plaintiffs had alleged that the AQHA's denial of registration to clones and their offspring constituted a conspiracy and that the association maintained its monopoly over the elite Quarter Horse market by excluding clones from registration. The court explained in its charge to the jury that, if the jury found the defendant violated the antitrust laws and the violation caused injury to the plaintiffs, then the jury was to compensate the plaintiffs for their resulting injuries. The jury heard testimony from the plaintiffs' experts regarding the amount of damages. The jurors also were instructed to avoid awarding damages for any portion of the plaintiffs’ injuries that the plaintiffs could have reasonably avoided.

A May 24 decision of the federal district court, denying the association's motion for summary judgment on the conspiracy and monopolization claims, paved the way for the trial, which began on July 17. The jury reached its verdict on July 30. American Quarter Horse Association Reaction to Verdict

“We are deeply disappointed by the outcome of this trial,” said AQHA Executive Vice President Don Treadway, Jr., in response to the verdict. “It continues to be our position that our rule prohibiting the registration of clones and their offspring is both reasonable and lawful.”

The association said that it was considering its next move and whether it will appeal the decision.

Attorneys: Nancy J. Stone for Abraham & Veneklasen Joint Venture. W. Wade Arnold (Underwood Law Firm) for American Quarter Horse Assn.

Companies: American Quarter Horse Assn.

News: Antitrust