Smart Little Lena clones

Smart Little Lena – Cloning Questions
Written by Mark Thompson (Photo by Young Ho Choi)

Still, it appears there’s lingering tension within the Smart Little Lena Syndicate regarding how to deal with the stallion’s stored semen and soon-to-turn 3-year-old clones.

“That’s a fight for another day,” said Tom Thomas, a Dallas attorney representing Tommy Manion and seven other Smart Little Lena Syndicate members in their settled lawsuit against fellow shareholder Jill Freeman, widow of the late Bill Freeman. Bill Freeman trained and rode Smart Little Lena, and for many years, managed his career as a stallion.

Asked if the remaining disputes can be settled without heading back to court, Thomas said, “Hopefully. I don’t think whatever’s left are the big issues.”

Jay Vogelson, the Dallas attorney representing Jill Freeman, said he remains optimistic other Syndicate members and his client can work out their differences. Then he also went on record stating, “Jill Freeman is strongly opposed to the clones competing.”

Vogelson added, “I’ll continue representing her for as long as she needs me.”

A San Antonio-based attorney employed by the Syndicate, J.D. Pauerstein, does not foresee the case going back to court.

“I can’t imagine why, if lawyers will behave themselves and act like adults, that this thing would ever need to get back into the courthouse,” Pauerstein said. “For God’s sake, this is something that people should be enjoying and having productive business with – not spending fortunes in legal fees. I think the owners need to be making decisions about how things are operated through the managers and that’s what we intend to see happen.”

Smart Little Lena (Doc O’Lena x Smart Peppy x Peppy San), cutting’s first Triple Crown winner and the sport’s all-time leading sire, turns 30 on Jan. 1. His five clones, all born in 2006, turn 3 the same day.

Three Smart Little Lena clones have been “conditioned” as 2-year-olds at all-time leading cutting horse rider and Smart Little Lena Syndicate member Phil Rapp’s training facility in Weatherford, Texas. Rapp has gone on record as planning to compete with a pair of soon-to-turn 3-year-old clones that he and his wife, Mary Ann Rapp, own (of Tap O Lena and Playboys Ruby) at the 2009 National Cutting Horse Futurity. At this point, the status of the Smart Little Lena clones as competitors has not been determined.

“I’m not sure,” Manion said when asked for a time frame regarding that decision. “We have sent out a survey [to Syndicate members], and we don’t have the results back.”

No Smart Little Lena clones have been entered in the 2009 National Cutting Horse Futurity. It started accepting nomination money Oct. 15. Entries of the Smart Little Lena clones could take place much later, if that’s the Syndicate’s decision, Manion said.

Smart Little Lena Syndicate member Jimmy Bankston, Fort Worth, Texas, also owns one share in the clones. He maintained that, so far, the Syndicate has not been organized in its approach toward managing the clones. One problem, he said, is that some Syndicate members own shares in the clones, while others don’t. There’s a conflict brewing, he added, because the clones could end up replacing Smart Little Lena as a breeder soon.

He would understand, Bankston said, if some parties that don’t own shares in the clones, but own shares in Smart Little Lena, believe they should still have some voice in how clones are handled. They were created with Smart Little Lena’s DNA, he said.

“Let’s get an attorney’s opinion,” Bankston said. “Let’s figure out the best way to do this. Let’s have some meetings, draw up some bylaws and vote on them. Let’s have some legal vehicle to govern with and go from there.”

Asked about Bankston’s concerns, Manion said the questions that he raises “do need a legal opinion.” He noted that Pauerstein is presently evaluating those issues.

“How we go forward will be guided by Mr. Pauerstein,” Manion said. “What we do will then be decided by the majority of the [Smart Little Lena Syndicate] shareholders.”

Pauerstein stated that the clone issue is being actively addressed.

“We’re in the process of considering how best to organize and manage the clone interest,” he said. “There is certainly reason for owners of the Syndicate who are not involved in the clones to have legitimate concerns about what happens with the clones. We need to see how we’ll address that and take that into consideration.”

Bankston does not think the clones should compete because “we’d have more to lose than we would to gain,” but he also thinks they’ll prove quite attractive as breeders.

Lower costs and possible higher fertility rates of the clones, versus Smart Little Lena’s stored semen, might create a new conflict among Syndicate members, he added.

“More than likely, we’re headed back to court,” Bankston said. Another reason for a possible new legal battle, in Bankston’s opinion, is that the Syndicate as a whole has not treated Jill Freeman equitably as “the single largest shareholder.”

“Jill’s personality is different than mine,” Bankston said. “That doesn’t matter. My whole deal is just let’s be fair. I think we’re headed down the exact same road of not seeking legal counsel before we act. That’s what got all of us in trouble the last time.”

Pauerstein responded, “In our view, we’re trying to be fair and we’re trying to do what’s appropriate. But we’re not going to let one shareholder dictate what’s done to the exclusion of others. I don’t think anybody under my guidance has got an agenda to harm Jill Freeman. That’s ridiculous.”

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