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their horse racing and breeding activity for 16 consecutive
years.
Petitioners argue that their losses occurred because of
unforeseen circumstances. A portion of petitioners' losses can
be explained by a series of unfortunate events beyond their
control. In 1983, petitioners were involved in a dispute with
their first trainer, Ms. Audrey Kraynik, over the ownership of a
stud horse named Distinctive Jet, which resulted in the loss of
Distinctive Jet. Also, as a result of the dispute, petitioners
could not register their foals from Distinctive Jet with the
Jockey Club, which prevented petitioners from racing any of the
foals.
Petitioners’ horses sustained numerous injuries, which
contributed to their losses. Some of the injuries were as
follows: Liberty Knoll broke a bone in her leg, an accident
which ended in her death; Talitha jumped out of a trailer while
being transported; Bad Memories suffered bone chips in her knee;
Captain’s K developed tendon problems; Naughty Castle suffered
injuries to her leg and foot; and several of petitioners' other
horses suffered injuries as well. These injuries prevented
petitioners from racing the injured horses.
A number of the aforementioned injuries occurred to horses
which were originally purchased by petitioners in 1980. The
injuries to Liberty Knoll, Captain's K, Bad Memories, and Naughty
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