Tag: Medina Spirit

Baffert, Zedan Drop Appeal of Medina Spirit Disqualification

Trainer Bob Baffert took to X late Monday afternoon to report that he has told his legal team to drop the appeal to the result of the 2021 GI Kentucky Derby, from which Zedan Racing Stable's Medina Spirit (Protonico) was disqualified for a betamethasone positive.

The post read: “I have instructed my attorneys to dismiss the appeal related to the disqualification of Medina Spirit in the 2021 Kentucky Derby. Zedan Racing owner, Amr Zedan, and I have decided that it is best to positively focus on the present and future that our great sport offers. We thank the KHRC (Kentucky Horse Racing Commission) and Churchill Downs for listening and considering our point of view and we are grateful for the changes and clarity that HISA brings to our sport.”

Ever since Medina Spirit was disqualified over the positive for the medication betamethasone, Baffert and Zedan have tried to have the disqualification overturned. Their primary argument was that the medication got into the horse's system through a topical cream used to combat skin rashes. Baffert and Zedan's lawyers would eventually build more than two years of court cases and administrative appeals around the contention that the betamethasone that showed up in Medina Spirit's post-race positive test was the type that came from a permissible topical ointment and not via some other restricted means, like an intra-articular injection.

In September, Zedan and Baffert filed a petition for a judicial review of the Kentucky Horse Racing Commissions's disqualification of the colt from his win in the 2021 Kentucky Derby. The petition was filed in Franklin Circuit Court in Kentucky and also includes a protest over Baffert's suspension in Kentucky.  Zedan and Baffert claim in the petition that the “laboratory limit of detection” used to identify betamethasone in Medina Spirit “is contrary to the plain terms of KHRC regulations and is void as arbitrary and capricious.”

They also argued that KHRC's exercise of rule making and adjudicatory powers is illegal and that the penalties against Zedan “are unconstitutional, arbitrary and capricious.”

One month earlier, the Kentucky Horse Racing Commission (KHRC) closed the 27-month regulatory saga involving Medina Spirit's Kentucky Derby drug disqualification by unanimously voting to deny appeals by trainer Baffert and Zedan Racing Stables while accepting a hearing officer's recommended order that the penalties originally imposed by the Churchill Downs stewards be affirmed in their entirety. From there, Zedan and Baffert began to try to win their case through the courts.

“The KHRC did what it does best–rubber stamped its own foregone conclusion. I will discuss with Mr. Baffert, but believe it is highly likely the matter is appealed so that it can finally be presented to an impartial Court,” Baffert attorney W. Craig Robertson III said at the time.

It was not clear Monday why Zedan and Baffert apparently changed their minds and decided to drop their case.

It is possible that their dropping the case was a peace offering in what has been an ugly battle between Churchill Downs and Zedan and Baffert that at times took on a personal tone. Churchill first banned Baffert from the 2022 and 2023 Derby. In a surprising move, Churchill announced in July that the Baffert ban was being extended until at least Dec. 31, 2024.

“Mr. Baffert continues to peddle a false narrative concerning the failed drug test of Medina Spirit,” Churchill said at the time in a statement.

Churchill also recently announced that any horse trained by someone banned by the track (Baffert is believed to be the only one under such a suspension) will be ineligible to compete in the Derby if still in that trainers barn as of Jan. 29.

Throughout the dispute, there was widespread speculation that Churchill's harsh treatment of Baffert was in response to the lawsuits. With those lawsuits now having been dropped, it will be interesting to see how Churchill reacts and what doors might open for Baffert and his owners.

Following the news that the case had been dropped, Churchill Downs officials said that the development would have no bearing on Baffert's current status. “Today's dismissal of appeal does not change the current suspension or deadline to transfer horses for the upcoming 150th Kentucky Derby,” read a statement forwarded by Churchill's Darren Rogers.

 

The post Baffert, Zedan Drop Appeal of Medina Spirit Disqualification appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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At 2 1/2-Year Mark, Bettors-Vs.-Baffert Lawsuit on Cusp of Getting Booted Back to Original Court

The New Jersey-based lawsuit in which a group of bettors are alleging they were cheated out of their property by Bob Baffert when his betamethasone-positive trainee, Medina Spirit, crossed the finish wire first in the 2021 GI Kentucky Derby and purportedly prevented the plaintiffs from cashing winning tickets on the runner-up is on the cusp of being transferred back to a federal court in California where it was first initiated 2 1/2 years ago.

In a Dec. 22 filing in United States District Court (District of New Jersey), the judge in the case ordered both sides to file letters by Jan. 15 “if either party wishes to explain why this case should NOT be transferred back to the Central District of California.”

The judge explained his rationale: “This case relates entirely, or all-but-entirely, to alleged events at a 2021 horse race in Kentucky,” the judge wrote. “And this case was originally filed by the Plaintiffs in the Central District of California, before the Plaintiffs voluntarily dismissed their claims and re-filed them here. This is a case, in short, that has little, if anything, to do with New Jersey.”

The original version of the suit, led by Michael Beychok, the winner of the 2012 National Horseplayers Championship, was filed in California four days after Baffert's May 9, 2021, disclosure that Medina Spirit had tested positive for betamethasone after winning the May 1 Derby.

It wasn't until Aug. 22, 2023, that the Kentucky Horse Racing Commission's disqualification of Medina Spirit from the 2021 Derby–which also affirmed the elevation of runner-up Mandaloun as the official winner–was sustained after a long administrative appeals process.

Baffert, plus his incorporated racing stable, were named as the defendants back in 2021, and the plaintiffs' California-filed version of the suit made it a point to note that “Venue is also proper for these claims in this Court because Defendants reside and transact their affairs and conduct business in the State of California and, specifically, through this District.”

The more than 30 class members of that suit chose the Racketeer Influenced and Corrupt Organizations Act (RICO) Act as a tool to try and collect damages. In addition, they sought an order from the judge stating that Baffert must divest himself from the sport.

RICO is a sweeping 1970 federal statute initially designed to combat the Mafia. But in a legal sense, it has long since lost its “organized crime” stigma. RICO today is rarely used to go after stereotypical “godfather” figures. Instead, RICO has evolved as a civil litigation component, and is most often asserted by purported victims of white-collar crimes, such as mail and wire fraud.

Two months after its initial filing, the class-action complaint was withdrawn from the California federal court on July 22, 2021. One day later, an amended version of it resurfaced in New Jersey.

The New Jersey complaint from July 23, 2021, alleged that, “[Baffert's] multiple and repeated acts of doping and entering horses into Thoroughbred races, including the Kentucky Derby, constituted racketeering activity.”

In subsequent court documents, the plaintiffs explained why they believed New Jersey should now be the proper venue. They cited a legal precedent that involved a case in which the act of  simulcasting a race into New Jersey from another state “permits the Court to exercise personal jurisdiction over it.”

The plaintiffs also alleged that Baffert's purported doping fraud included his occasional starts at Monmouth Park.

But as far back as September 2021, when Baffert first moved for dismissal of this lawsuit, his court filing termed that switch from California to New Jersey “blatant forum shopping” because the new venue has “no meaningful connection to the allegations raised in their Complaint.”

The term “forum shopping” refers to the practice of litigants angling to get their case heard in the court thought most likely to result in a winning outcome. It is not illegal or unethical to forum shop, but judges can and do let parties know if they believe lawyers are stretching legal boundaries by trying to get their cases heard in venues that are most favorable to them.

Another Baffert filing, on Jan. 12, 2022, again alleged that the plaintiffs were off base in attempting to litigate the matter in New Jersey.

“The law is clear that there must be case-specific contacts with the forum state…” that filing stated. “Even if one were to accept Plaintiffs' tinfoil conspiratorial premise that Baffert engaged in a nationwide racketeering scheme to defraud individuals he never met, Plaintiffs would still have to establish that at least some of the alleged illicit conduct actually occurred in New Jersey. They have utterly failed to do so. This matter has zero connection to New Jersey and it must be dismissed.”

Earlier this year, a federal judge in Kentucky dismissed a similar (but entirely separate) class-action lawsuit initiated against Baffert by a group of horseplayers who alleged negligence, breach of contract, and unjust enrichment because their losing pari-mutuel bets on the 2021 Derby also weren't honored as winners.

Baffert's attorney in the New Jersey case, W. Craig Robertson III, made sure the judge in New Jersey was aware of that Kentucky dismissal when considering the motion to dismiss, which is still active and has yet to be ruled upon.

“Identical to this case, the [federal complaint in Kentucky] was commenced by a purported class of aggrieved gamblers against [Baffert] asserting claims connected to pari-mutuel payouts from the 2021 Kentucky Derby,” Robertson wrote in a July 26, 2023, letter to the U. S. District Court of New Jersey.

“The Western District of Kentucky dismissed those claims as a matter of law,” Robertson continued. “Specifically, the Court held that Kentucky's Rules of Racing govern all bets placed on the Kentucky Derby and because the Rules are clear that all payouts are final based on official race-day results, aggrieved gamblers have no injury at law and no viable cause of action even if race results are later altered.

“Similarly here, [Baffert seeks] dismissal of the case before Your Honor due to a lack of cognizable injury, whether under the RICO statute or otherwise,” Baffert's attorney wrote.

Counsel for the plaintiffs responded with their own letter to the judge Aug. 7, writing that the Kentucky decision “has no relevance or merit to the present matter” and that the “causes of action brought by the present Plaintiffs in this action are separate, distinct, and dissimilar from the claims brought by separate parties” in the dismissed Kentucky lawsuit.

The post At 2 1/2-Year Mark, Bettors-Vs.-Baffert Lawsuit on Cusp of Getting Booted Back to Original Court appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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Letter To The Editor: Churchill’s ‘Unprecedented’ Suspension Of Baffert

My wife and I recently started working on our travel plans for next year's Triple Crown races. Unfortunately, that will likely not include the 2024 Kentucky Derby as our trainer, Mr. Bob Baffert, for the 3rd year in a row still won't be allowed to race our horses at Churchill Downs, should our horses be so qualified. We have had to deal with this for the past few years with multiple horses, where Churchill Downs, a public entity, has deemed itself to be a higher power than the various state horse racing commissions and arbitrarily and capriciously chose to exact its own extended punishment on Mr. Baffert for, what now really appears to be, personal and vindictive reasons.

It's disappointing that Churchill Downs has decided to use its private property exclusion rights in the manner it has. Not only has Churchill Downs initially applied these rights to suspend Mr. Baffert for a period eight times as long as that imposed by the Kentucky Horse Racing Commission (the body responsible for implementing the rules of racing), Churchill Downs decided in July 2023 to apply these rights indefinitely to a validly licensed trainer with no regulatory violations since his initial suspension. Extending the suspension and leaving it open to review at the end of 2024 is unprecedented.

I am not aware of other sports where the tracks, arenas or stadiums can dictate what athletes, coaches or owners are allowed to compete in their facilities. When NASCAR penalizes drivers, crews or other team members for infractions, does Daytona Speedway, Bristol or other tracks randomly ban those same drivers and crews for additional length of times? Imagine if Jerry Jones, who owns Texas Stadium, was allowed to ban a specific athlete, coach or team from competing at Texas Stadium because he wasn't happy with punishment the NFL governing committees meted out for a late hit, a personal foul or Deflategate. What if MLB, NHL, NBA/WNBA, MLS or any other competitive sport league allowed for arena owners to do this for petty offenses under the guise of specific conduct being detrimental to the sport? It's ludicrous and unimaginable!

With the advent of HISA we now have a national governing body in place that is developing consistent standards across all states. The Kentucky state rules that existed at the time of the original suspension with respect to betamethasone, a controlled substance, have been superceded by HISA regulations. Mr. Baffert was suspended for 21 picograms (or .021 nanograms) of betamethasone in Medina Spirit. The most recent HISA regulations now use a screening limit of .20 nanograms of betamethasone in horses before any action would be taken. It's ridiculous to me for Churchill Downs to extend Mr. Baffert's suspension given that 21 picograms is almost 90% below the threshold!

I have had the opportunity to work with many world class public and private companies during my career as a partner at a large global firm, having worked closely with C suites and boards on over 500 transactions. I have never seen behavior like this from a board in my career. The allegations around the “false narrative” that the Churchill Downs board has used to defend this action indicate to me there is something deeper and more personal. It appears that Churchill Downs is sending a message to all horsemen and horsewomen not to cross Churchill Downs or proffer alternative points of view lest similar suspensions, far in excess of what is deserved, will be meted out to them. This bullying and abuse of power is not in the best interests of the sport.

It's not just the trainer that suffers either. By extending the suspension, Churchill Downs is not just punishing Mr. Baffert, but Churchill Downs is punishing me. There is significant value that has been lost. Similarly, Churchill Downs is punishing my partners. Churchill Downs is punishing other owners with horses with Mr. Baffert. Churchill Downs also is punishing Mr. Baffert's employees and their families. Churchill Downs is punishing fans, old and new, many of whom are drawn to the sport because of Mr. Baffert.

The bigger issue at play here is the upside down relationship between Churchill Downs and the athletes/horses, the coaches/trainers/breeders and owners. Churchill Downs is nothing without them. I am not alone in this opinion. It would be a shame to see the history of Churchill Downs diminished because of the bullheadedness of a few.

With the upcoming 150th anniversary, the story isn't going to be just about who's there, but who's not and why.

Gregg Slager, Waves Edge Capital, LLC

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Baffert/Zedan File New Medina Spirit Appeal

Owner Amr Zedan and trainer Bob Baffert, connections of the ill-fated Medina Spirit (Protonico), filed a petition for a judicial review of the Kentucky Horse Racing Commissions's disqualification of the colt from his win in the 2021 GI Kentucky Derby.

The news, first reported by Bloodhorse, noted that the petition was filed in Franklin Circuit Court in Kentucky Tuesday and also includes a protest over Baffert's suspension in Kentucky.

BloodHorse reported that Zedan and Baffert claim in the petition that the “laboratory limit of detection” used to identify betamethasone in Medina Spirit “is contrary to the plain terms of KHRC regulations and is void as arbitrary and capricious.”

They also argue that KHRC's exercise of rule making and adjudicatory powers is illegal and that the penalties against Zedan “are unconstitutional, arbitrary and capricious.”

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