American Pharoah's owner notches big win -- in courtroom -- before Belmont Stakes

Published Jun. 4, 2015 2:25 p.m. ET

share

facebookxredditlink

Sam Gardner

NEW YORK --€” Thursday brought good news for the owner of Triple Crown hopeful American Pharoah, as a U.S. District judge in New Jersey threw out a breach-of-contract lawsuit that had been filed against Ahmed Zayat.

The suit, originally filed in March 2014, claimed that Zayat owed a Florida man named Howard Rubinsky $1.65 million. In the lawsuit, Rubinsky alleged that he incurred the loss of more than $2 million making bets on Zayat's behalf on a Costa Rica-based gambling site in 2003. Zayat consistently claimed that he had never asked Rubinsky to put up a line of credit in his name.

In his summary judgment, Judge William J. Martini dismissed the case, stating that the statute of limitations had expired.

"I'm extremely grateful," Zayat told FOX Sports on the phone. "I'm very happy for myself and for my family. I've always said that the truth will come out, that this was lies and fiction from A-to-Z, and the timing couldn't be any better. There is a God, there is justice, I always believed in my heart that good things happen to good people, and I couldn't understand what was going on. But that gave me a lot of push and confidence going forward.

"It's painful what we went through here," Zayat added. "I didn't expect the judge to even rule on it now. We didn't know what time, and the timing couldn't have been more perfect. I wanted to focus on the horse and enjoy this special moment in my life, but it was a huge distraction for me, even though I tried as much as possible to put on a brave face. But things happen for a reason, and two days from now we'll be going for history here. So I am extremely grateful, humbled and thankful to God."

According to court documents, Rubinsky hired an attorney and personal investigator to recover the alleged debt in 2005, and because the suit was not filed until March 11, 2014, the statute of limitations had passed. Rubinsky claimed that text messages between himself and Zayat on April 6, 2008, constituted a written agreement between the parties and that the case fell within the statute of limitations as a result.

In New Jersey, the statute of limitations in breach of contract and unjust enrichment cases is six years.

In his decision, Martini ruled that Rubinsky's claims "accrued, at the latest, in 2005" and stated that Rubinski "has not presented any evidence that would toll or restart the statute of limitations." Additionally, according to the decision, "The record contains no indication that (Zayat) actively misled (Rubinsky) regarding (Rubinsky's) claims or otherwise reasonably prevented (Rubinsky) from filing a timely complaint."

After the ruling came down, Zayat sent out a pair of tweets expressing joy and relief at the decision.

Zayat's son Justin, a recent NYU graduate and Ahmed's racing manager at the family's stables, echoed his father's sentiments.

"I'm happy that the truth came out and justice is served," Justin Zayat told FOX Sports. "There are some bad, bad people in the world.

"I'm just so happy that this has happened before the race because I did not want to see my dad go through this for the whole week," he added. "It was total lies, and I'm happy it's finished. I'm happy the judge saw the truth. We've been saying the whole entire time it's nonsense."

At Wednesday's post draw in Manhattan, Ahmed Zayat spoke about the impact the case has had on him over the last several weeks. Zayat said that he had lost seven pounds this week due to stress in the leadup to Saturday's Belmont Stakes.

"It's eating me," the 52-year-old former beer tycoon said. "It's sad. I'm very saddened. It's despicable that anybody --€” is this the price of success? That people tear you down?

"Thank God, we are in a country where the due process and the legal system is honorable," he added later, "and I am certain that the judge will throw this rubbish out."

The case largely hinged on those 2008 text messages, in which Rubinsky claimed Zayat "promised in writing" to make weekly payments to settle the debt. Martini pointed specifically to two texts from Zayat --€” one reading, in part, "I am not obliged to pay anything," and another stating that he "don't own a soul anythings" --€” as proof that no such agreement took place.

The first, sent at 9:30 a.m. on April 6, 2008, read in full (sic): "I will mail you checks evvery Friday, just give me an address, I will not postdate checks, why?? No reasons, I am not obliged to pay anything."

The other, sent just a few seconds later, stated: "Is just helping you out, don't own a soul anythings, God knows how much I helped everone, I am not responiable if your friends are crooks and robbed Y."

In subsequent texts, Zayat tells Rubinsky: "I am more than generous, I love you and help you as a friend and a good decent Yiddish boy," and also adds, "So text me your friends contacts and I will call them sometime this week, and give an address every Thursday to Fed Exp, a heck for you, and I promised to. Help you in this mess."

In addition, Martini also noted in his decision that, "under New Jersey law, an acknowledgement or promise to pay a debt will only restart the statute of limitations if it is unconditional and in a signed writing." And while some have criticized the decision as being based on a technicality, Zayat denied that characterization on Thursday.

"Not at all," Zayat said. "That's actually wrong. I'm not the lawyer, but that's not the case at all. Go read the case; it's completely the opposite. (The judge) actually made very strong statements about (how) there was zero proof and stuff like that. But I'm not the lawyer. And my lawyer told me --€” if you are telling me that this is a technicality, absolutely not."

The court documents detailing the decision can be read here.

"I never in my life have bet illegally," Zayat said. "I never in my life used a bookie. I never in my life bet on a sport other than horse racing, which is legal, and the only thing that I ever did in sports was betting in an office pool for the Super Bowl. So all of this was an absolute fiction.

"At that time, in 2003, I was the full-time CEO and chairman of the largest company in Egypt," he continued. "I was managing 7,000 people. I was working 18 hours a day. I didn't have a second to sit and put bets on particular American teams that I had no clue about and to bet it in Costa Rica. It's fiction. Fiction, fiction, fiction, fiction."

When reached by phone, Rubinsky's lawyer, J. Joseph Bainton, declined to speak specifically about the case.

"We have no comment at this time," said Bainton, who also filed a $10 million libel lawsuit against Zayat earlier this week. "We are reading the judge's opinion and thinking about it carefully. It takes at least 24 hours to think about this sort of thing."

So for now, at least, the Zayat family can look ahead to Saturday's race with a clear mind.

"I guess that's what happens when you're on top for a little --€” someone always tries to take you down," Justin Zayat said. "But it's behind us and now it's not about the Zayats anymore. It's about the horse and enjoying it."

"I wanted to be an ambassador for racing," Ahmed Zayat said. "I want it to be for New York. I want it to be for the fans. We haven't had a Triple Crown in 37 years. We all want it to happen, and this is one special horse. He's looking fantastic, he trained so good today, and every all systems are go, so to speak. I just can't wait for the race right now. I'm able to breathe and feel joy and be surrounded by friends and family, so it's a blessing."

You can follow Sam Gardner on Twitter or email him at samgardnerfox@gmail.com.

share