Stable Sues Insurers Over Denial of Payment on Laoban

Kevin Moody's Cypress Creek Equine is suing a contingent of insurance companies for their decision not to pay on the mortality coverage for the late stallion Laoban , who died unexpectedly last May.

As first reported by Paulick Report, Cypress Creek Equine filed the lawsuit March 21 in Fayette (Ky.) Circuit Court against North American Specialty Insurance Co., Specialty Insurance Co., Underwriters at Lloyd's of London, and Lloyd's Kentucky.

Cypress Creek Equine, a breeding and racing operation, was a co-owner of Laoban, a son of Uncle Mo   who entered stud at Sequel Stallions New York and was relocated to WinStar Farm in late 2020. He stood his first breeding season in Kentucky in 2021.

"On May 24, 2021, the healthy stallion Laoban, partially owned by Cypress, died unexpectedly … after being given vitamin and mineral supplements," states the plaintiff's complaint.

Cypress claims in the suit it had full mortality coverage and was told last summer in a letter dated Aug. 4 that any payment from that coverage was being denied. A copy of the letter was not posted in online court records as part of the lawsuit's complaint.

"The denial violated the clear terms and provisions of the policies," the complaint continues. "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 is seeking full payment from the insurance policy, compensatory damages, and reasonable attorney's fees.

Legal documents from attorneys representing the insurance companies had not been filed and posted online by midday March 24. 

Cypress Creek has been successful campaigning runners by Laoban. One of the stable's stars this year is Un Ojo , who won the Rebel Stakes (G2) and is pointed toward the April 2 Arkansas Derby (G1). Other top progeny it has raced include multiple grade 1-placed, grade 2 winner Keepmeinmind  (owned with Arnold Bennewith and Spendthrift Farm), grade 2-placed winner Ava's Grace , and stakes-placed winner Dreamer's Disease  (with Bennewith).

Laoban was a top-10 second-crop sire last year with more than $3.4 million in progeny earnings and 13 black-type performers, which included five black-type winners. As a freshman sire of 2020, he finished second in the sire standings behind Nyquist  , another son of Uncle Mo, and was tied with Not This Time   as the leading sire by number of stakes winners with three. His top performer to date is grade 1 winner Simply Ravishing , who won the 2020 Darley Alcibiades (G1).

From three crops of racing age, Laoban has sired 10 stakes winners and eight stakes-placed performers as of March 24. His total progeny earnings to date exceed $6.3 million.