Abraham Trial Volume Iv of Viii
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Volume IV of VIII 747 1 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS 2 AMARILLO DIVISION 3 ABRAHAM & VENEKLASEN JOINT § 4 VENTURE, ABRAHAM EQUINE, § INC., and JASON ABRAHAM, § 5 § Plaintiffs, § 6 § VS. § CASE NO. 2:12-CV-103-J 7 § AMERICAN QUARTER HORSE § 8 ASSOCIATION, § § 9 Defendant. § 10 ============================================================= 11 CIVIL TRIAL BY JURY 12 13 JULY 22, 2013 14 VOLUME IV OF VIII 15 16 (Pages 747 - 995) 17 ============================================================= 18 19 On the 16th, 17th, 18th, 19th, 22nd, 23rd, 24th, 25th, 20 26th, 29th, and 30th days of July 2013, a Civil Trial by Jury 21 in the above-entitled and numbered cause came on to be heard 22 before the Honorable Mary Lou Robinson, United States District 23 Judge for the Northern District of Texas, presiding and a jury. 24 25 Proceedings reported by mechanical stenography; transcript produced by computer. Stacy Mayes Morrison Official Court Reporter T r i a l I n d e x 748 1 VOLUME IV (PAGES 747 - 995) 2 PROCEEDINGS FOR JULY 22, 2013 3 PAGE 4 CAPTION............................................................. 747 5 TRIAL INDEX......................................................... 748 6 EXHIBIT INDEX....................................................... 749 7 APPEARANCES......................................................... 750 8 PROCEEDINGS FOR JULY 22, 2013....................................... 751 9 10 PLAINTIFFS' EVIDENCE (CONTINUED) 11 WITNESSES: DIRECT CROSS REDIRECT RECROSS VOIR DIRE 12 DON TREADWAY (CONTINUED) 751 753 754 13 BUTCH WISE (BY DEPOSITION) 757 14 GLENN BLODGETT 777 15 (BY DEPOSITION) 16 CAROL ROSE (BY DEPOSITION) 783 17 JEFF TEBOW (BY DEPOSITION) 789 18 MIKE JENNINGS 795 (BY DEPOSITION) 19 GEORGE SEIDEL 806 20 (BY DEPOSITION) 21 TAMMY CANIDA 814 822 827 828 828 22 DAVID BROWN 830 859 873 23 CHRISTOPHER PFLAUM 875 973 24 25 REPORTER'S CERTIFICATE.............................................. 995 Stacy Mayes Morrison Official Court Reporter E x h i b i t I n d e x 749 1 IDENTIFICATION OF PLAINTIFFS' EXHIBITS 2 3 NO. DESCRIPTION OFFERED ADMITTED 4 92 SLIDESHOW PRESENTATION, GEOGRAPHIC MARKET:THE UNITED STATES AND CANADA 889 889 5 112 TABLE 2 FROM CHRIS PFLAUM REBUTTAL REPORT DATED 6 FEBRUARY 14, 2013 908 908 7 127 TABLE 11 ("UGONE'S EXCESS CAPACITY ANALYSIS") FROM CHRIS PFLAUM REBUTTAL REPORT DATED 8 FEBRUARY 14, 2013 949 949 9 137 PLAINTIFFS' DAMAGE CHART NO. 1 969 970 10 138 PLAINTIFFS' DAMAGE CHART NO. 2 971 971 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Stacy Mayes Morrison Official Court Reporter Appearances 750 1 A-P-P-E-A-R-A-N-C-E-S 2 3 FOR PLAINTIFF, ABRAHAM & MS. NANCY J. STONE VENEKLASEN JOINT VENTURE: Law Office of Nancy J. Stone 4 Attorney at Law 320 S. Polk St., Suite 820 5 Amarillo, Texas 79101 6 FOR PLAINTIFF, ABRAHAM MR. SAMUEL L. STEIN 7 EQUINE, INC.: Law Office of Sam L. Stein, PLLC Attorney at Law 8 305 S. Grand Avenue P.O. Box 223 9 Cherokee, Oklahoma 73728 10 FOR PLAINTIFF, JASON MR. RONALD D. NICKUM 11 ABRAHAM: Law Office of Ronald D. Nickum Attorney at Law 12 P.O. Box 1889 Amarillo, Texas 79105-1889 13 AND 14 MR. BRIAN E. ROBISON 15 GIBSON, DUNN & CRUTCHER, LLP Attorneys at Law 16 2100 McKinney Ave., Suite 1100 Dallas, Texas 75201 17 18 FOR THE DEFENDANT: MR. W. WADE ARNOLD and 19 MR. MICHAEL H. LOFTIN and MS. AUTUM LEIGH WHITE 20 Underwood Law Firm Attorneys at Law 21 500 S. Taylor, Suite 1200 Amarillo, Texas 79101 22 23 COURT REPORTER: MS. STACY MAYES MORRISON 24 Official Court Reporter 205 E. 5th, LB #F13263 25 Amarillo, Texas 79101 (806) 672-6219 Stacy Mayes Morrison Official Court Reporter Don Treadway (Redirect--Ms. Stone) (Plaintiff Abraham & Veneklasen Joint Venture) 751 1 PROCEEDINGS FOR JULY 22, 2013 2 (The following took place in open court with the jury and 3 all parties present.) 4 THE COURT: You may proceed. 5 MR. ARNOLD: Your Honor, at this time, Defendant 6 passes the witness. 7 DON TREADWAY (CONTINUED), 8 having been previously duly sworn, testified as follows: 9 REDIRECT EXAMINATION 10 BY MS. STONE: 11 Q. Good morning, Mr. Treadway. 12 A. Good morning. 13 Q. I have just very few questions for you. You still have 14 your deposition in front of you; is that correct? 15 A. Yes, ma'am. 16 Q. Okay. And, at the time that you gave that deposition, as 17 you did here before the clerk, you raised your hand and the 18 court reporter swore you in, and you promised to tell the 19 truth, correct? 20 A. Yes, ma'am. 21 Q. Okay. And, following the deposition after it was 22 transcribed -- and your deposition was taken on October 19th, 23 2012; is that correct? 24 A. I believe so, yes. 25 Q. And, after the deposition was transcribed and put into Stacy Mayes Morrison Official Court Reporter Don Treadway (Redirect--Ms. Stone) (Plaintiff Abraham & Veneklasen Joint Venture) 752 1 the little booklet, you had an opportunity to read it; is that 2 correct? 3 A. Read the deposition? 4 Q. Yes, sir. 5 A. Yes, ma'am. 6 Q. And you read the deposition, and you, again, with a few 7 exceptions -- corrections, you made a few corrections, but 8 none of them had anything to do with any of the questions that 9 I asked you about on Friday. Would you agree with that? 10 A. Correct. 11 Q. Okay. And you, again -- when you read your deposition, 12 you, again -- on November the 7th, 2012, you, again, in front 13 of a notary public, signed your deposition and swore that the 14 statements contained therein were true and correct, right? 15 A. Yes. 16 Q. Now, the Task Force, the Cloning Task Force, it never 17 actually met in person, did it? 18 A. I don't recall that they met in person. 19 Q. And do you recall that following -- do you recall that we 20 talked on Friday about Exhibit No. 142? And that was the 21 document -- the e-mails between you and Mr. Cofrancesco where 22 he was asking you in December of 2011 to set up a meeting with 23 the Executive Committee and certain members of the Stud Book 24 and Registration Committee. Do you recall that? 25 A. Yes. Stacy Mayes Morrison Official Court Reporter Don Treadway (Direct--Mr. Stein) (Plaintiff Abraham Equine, Inc.) 753 1 Q. Okay. And there was, in fact, a meeting held in January 2 of 2012, correct? 3 A. That is correct. 4 Q. And that meeting -- that meeting, that session was 5 referred to as a strategic planning session, wasn't it? 6 A. Yes, ma'am. 7 MS. STONE: No further questions. 8 MR. STEIN: May I? 9 THE COURT: Yes, sir. 10 MR. STEIN: Thank you. 11 DIRECT EXAMINATION 12 BY MR. STEIN: 13 Q. Mr. Treadway, you were in this courtroom when Frank 14 Merrill's testimony was read to the jury? 15 A. Yes, sir. 16 Q. And it was, in fact, the procedure at AQHA that, when an 17 agenda item was discussed at the Stud Book and Registrations 18 Committee and no action was taken by the committee, that 19 decision-making process of no action doesn't go to the 20 membership or to the board, correct? 21 A. Technically, it goes to the board. 22 MR. STEIN: Exhibit 31, please. 23 A. And let me explain, if I could. 24 Q. (By Mr. Stein) You've also been in the courtroom, sir, 25 where we have seen Dan Schaap, counsel for AQHA, advising Mr. Stacy Mayes Morrison Official Court Reporter Don Treadway (Cross--Mr. Arnold) (Defendant AQHA) 754 1 Holley, one of the rule-change proponents, of this very same 2 procedure, that if, in fact, affirmative action is not taken 3 by the Stud Book and Registrations Committee, that decision, 4 that nonaction, that denial doesn't make it into the 5 recommendation to the membership. 6 You've seen that in this courtroom as well, haven't you? 7 A. Yes, sir. 8 MR. STEIN: All right. No further questions. 9 MS. STONE: Nothing further. 10 CROSS EXAMINATION 11 BY MR. ARNOLD: 12 Q. Don, how are you doing this morning? 13 A. I'm good. Thank you. 14 Q. Let me just ask you a couple of questions. You were here 15 for the testimony of Mr. Topliff, Professor Topliff, were -- 16 A. Yes. 17 Q. -- you not? 18 A. Yes, sir. 19 Q. And do you recall his testimony that, other than his 20 abstention and John Pipkins vote "no," that the entire Board 21 of Directors in 2013 voted against the rule-change proposal 22 presented by Jason Abraham? Were you here for that testimony? 23 A. Yes, sir. 24 Q. And was that your recollection of what occurred at that 25 board meeting as well? Stacy Mayes Morrison Official Court Reporter Don Treadway (Cross--Mr. Arnold) (Defendant AQHA) 755 1 A. Yes, sir. 2 Q. And have you been present at every convention since 2008 3 to the present through 2013? 4 A. Yes, sir. 5 Q. And was the recommendation of the Stud Book Committee in 6 2008, which was to study the proposal further, was that passed 7 by the board in 2008? 8 A. Yes, sir. 9 Q. And was the recommendation of the Stud Book Committee in 10 2009 to form a Task Force, was that passed by the Board of 11 Directors in 2009? 12 A. Yes, sir. 13 Q. And was the Stud Book Committee recommendation in 2010 to 14 deny the Holley/Cannon rule proposal, was that accepted by the 15 Board of Directors in 2010? 16 A.