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lines and the racing history of those horses. Petitioners did
not race Ding Dong Daddy. Petitioners bred him with their own
horses and with outside horses for a stud fee. Petitioner bred
Ding Dong Daddy with one of her mares and produced Blue’s Ding
Dong, which she sold. Blue’s Ding Dong became a successful
racing horse.
Petitioners also acquired another stallion named Halyard
that allegedly sired $4 million worth of winners. Halyard, an
older horse, was known to be a difficult breeder. Indeed, he
produced no offspring for petitioners. Halyard died in 1996.
Petitioners listed both Ding Dong Daddy and Halyard in the
Thoroughbred Times in 1993. The Thoroughbred Times is a stallion
directory, and in petitioners’ listings, they listed the
bloodlines and the stud fees. The stud fee for Ding Dong Daddy
was $1,000 and for Halyard, $1,250. But both fees were, as
petitioner stated, “negotiable”. Petitioners did not do any
other advertising.
Midget Acres provided a “stallion service contract” to horse
owners who wanted to breed a mare with one of petitioners’
stallions. Petitioners would board a mare at their barn, and
petitioner would check the mare to see when she was in heat and
then determine when to do the breeding. Petitioners charged a
booking fee which was 10 percent of the stud fee. If the mare
gave birth to a live foal, petitioners would collect the stud
fee. According to petitioner, it takes about a year from
conception for the mare to give birth. Therefore, petitioners
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