Richard L. and Marjorie A. Pitts - Page 3




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          of those horses that petitioner showed won New England Champion.            
          In the early 1960's, both petitioners worked for the California             
          Breeders Association in Circleville, Utah.  Petitioners were in             
          charge of breeding 12 stallions to over 100 mares on this farm.             
          After leaving the California Breeders Association, petitioners              
          moved to California and worked for Mr. John Dick, where they                
          managed and trained horses on his farm.  Then in the mid-1960's,            
          petitioners took jobs not associated with the horse business.               
               In 1982 petitioners bought their house in Whittier on a                
          half-acre parcel zoned “R-1”, which does not permit horses.                 
          However, many of petitioners’ neighbors also kept horses.  In               
          1984, petitioners erected a portable barn on their property.  The           
          barn had a breezeway and four stalls.  In back of the barn were             
          four pipe pens.  Petitioners acquired quarter horses around this            
          time with the intent to breed and race them.  In 1985 petitioners           
          filed a Fictitious Business Name Statement stating that they were           
          doing business as Midget Acres.  Petitioners also received a                
          public health license issued by the County of Los Angeles.  Los             
          Angeles County Code section 7.04.010 requires a license before              
          the commencement of any business activity.  Petitioners did not             
          have a business license.                                                    
               In 1986 and 1987 petitioners worked at the Kerr stock farm             
          (the Kerr farm) where petitioner trained horses.3  Petitioners              
          took their own horses with them to the Kerr farm, where they                

          3  Petitioner testified that Mr. Pitts worked on underwater                 
          treadmills for the horses at the Kerr farm.                                 

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