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CHRB Settles with Ruis in ’18 Santa Anita Derby Dispute Involving Justify DQ

Three months after a Los Angeles County Superior Court judge ordered the California Horse Racing Board (CHRB) to set aside a 2020 stewards' decision and issue a new ruling disqualifying winner Justify from the 2018 GI Santa Anita Derby, a separate settlement has been reached that calls for the CHRB to pay $300,000 to Mick Ruis, the owner of runner-up Bolt d'Oro, and to order a redistribution for the $1-million purse of that stakes.

Dick Downey of the Blood-Horse was first to report the settlement on Thursday, citing details made public in court filings.

Neither the settlement nor the underlying lawsuit involved any direct claims against 'TDN Rising Star' Justify's then-ownership group (China Horse Club, Head of Plains Partners, Starlight Racing, and WinStar Farm) or the colt's trainer, Bob Baffert.

Although, as Downey pointed out in the Blood-Horse, “Presumably they retain the right to appeal the stewards' ruling” and the purse redistribution.

By winning the Santa Anita Derby, the undefeated Justify was able to earn necessary qualifying points to enter the GI Kentucky Derby. He then swept the remaining two Triple Crown races, the GI Preakness S. and GI Belmont S, but was retired from racing six weeks later after developing a left front ankle filling.

It wasn't until 15 months after Justify's Triple Crown romp that a September 2019 bombshell story in the New York Times revealed that Justify had tested positive for scopolamine after he won the Santa Anita Derby, and that the result had been kept hidden from the public.

The Times further reported that CHRB officials arranged to handle Justify's positive “differently than usual” by holding an August 2018 executive session hearing during which CHRB members voted unanimously not to disqualify Justify or to sanction Baffert because the positive test was the result of contamination linked to jimson weed.

The stewards subsequently claimed they had no jurisdiction on the matter as it had already been decided, a decision with which the CHRB later concurred.

Ruis then began what would turn out to be a years-long legal quest to have the result of the race overturned with Bolt d'Oro declared the winner, alleging that the CHRB failed to follow its own rules when it decided not to pursue penalties after Justify's positive test.

Carlo Fisco, one of Ruis's attorneys, told TDN via email Thursday evening that the settlement also will quell a separate civil case pending against the CHRB that sought monetary damages.

“We have settled our monetary claims against the CHRB, which now has the additional duty to recover and redistribute the purse to the rightful owners including our client,” Fisco wrote. “It was never about the money. I'm hoping we can all move on and put the actions in 2018 of a few bad actors behind us. It's all been settled save for the purse redistribution.”

According to the Mar. 5 court document that outlines the settlement, “within five days of [the CHRB] being served with the signed Judgment, the Board of Stewards will enter a new order disqualifying the horse Justify and redistributing the purse pursuant to Rule 1859.5 and ordering that all purse monies earned or awarded be returned to the Paymaster of Purses at Santa Anita within 30 days of their order. If the purse is not redistributed within 30 days, [the] CHRB shall use its best efforts pursuant to its rules [in] ensuring that the [court ruling] is upheld.”

The settlement filing states that the CHRB's obligations “are expected to be fully performed by CHRB using its best efforts as expeditiously as possible.”

The settlement also stipulates that “Nothing contained in this Agreement shall be construed as an admission of liability, any wrongdoing, or any violation of law.”

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Court Orders Disqualification of Justify’s Santa Anita Derby Win

A decision may have finally been reached in the long-standing legal skirmish over the results of the 2018 GI Santa Anita Derby, won by Justify (Scat Daddy), according to a release issued Friday afternoon by the connections of Ruis Racing, who campaigned runner-up Bolt d'Oro (Medaglia d'Oro). Ruis Racing has sought a disqualification of Justify by the California Horse Racing Board (CHRB), as the winner tested positive for scopolamine following the race.

After it was revealed in a report that Justify had tested positive for scopolamine, Ruis began that quest to have the result of the race overturned with Bolt d'Oro declared the winner. Ruis alleged that the CHRB failed to follow its own rules when it decided not to pursue penalties after Justify's positive test. The CHRB acted on recommendations from then-executive director Rick Baedeker and equine medical director Dr. Rick Arthur. It was their call that Justify should not be disqualified because the positive test was the result of contamination linked to jimson weed.

The lack of disqualification at the time was especially significant as the qualifying 'Road to the Kentucky Derby' points Justify earned from his win in the Santa Anita Derby–his first career stakes start–made him eligible for the GI Kentucky Derby a month later. He not only won the Kentucky Derby, but went on to win the Triple Crown as well. Justify, a 'TDN Rising Star' conditioned by Hall of Famer Bob Baffert, was raced at that time for the partnership of China Horse Club, Head of Plains Partners LLC, Starlight Racing, and WinStar Farm, while Bolt d'Oro was trained for Ruis Racing LLC by Mick Ruis.

The statement, in its entirety, follows:

“Ruis Racing LLC announced today a significant legal victory against the California Horse Racing Board. Represented by attorneys Carlo Fisco and Darrell Vienna, Ruis Racing LLC obtained an order from Los Angeles County Superior Court Judge Mitchell L. Beckloff directing the California Horse Racing Board Stewards to set aside their December 9, 2020 decision and issue a new ruling disqualifying Justify from the 2018 Santa Anita Derby.

“The Steward had originally ruled that they lacked jurisdiction to conduct a Disqualification Hearing in this matter. The Court disagreed and stated in its decision that there is “no reason for remand” as there is “no doubt” the Stewards would have disqualified Justify if they understood that they had the authority to do so.

“Today's decision supports the longstanding California Horse Racing Board rule that any horse racing with a prohibited substance in its system must be disqualified and the purse redistributed.”

TDN was able to option a copy of the ruling, which appears here. The following is found in the ruling's conclusion:

“As the Stewards have already determined what the result would be if they could reach the issue of disqualification on the evidence before them, the court will issue a writ directing the Stewards to set aside their December 9, 2020 decision and Remand Decision and to make a new order disqualifying Justify. Based on the twice-stated clear position of the Stewards, the court finds there is “no reason for remand” of the matter as there is “no real doubt” the Stewards would have disqualified Justify if they understood that Respondent provided them with such authority when Respondent filed the complaint against the Justify Parties.”

According to CHRB spokesperson Mike Marten, the agency has not yet decided whether to appeal the ruling, and there was no further comment on a “pending legal matter.”

Attorney Darrell Vienna, representing Ruis, said that Justify's connections theoretically could also appeal the ruling, “even though this suit was simply between Mick Ruis, under Ruis Racing LLC, versus the California Horse Racing Board.”

Ruis also has a separate civil case pending against the CHRB seeking monetary damages. That case is also filed in the Los Angeles County Superior Court.

“They don't run in parallel. I think if we had lost this case it would have been very problematic for the civil case,” said Vienna.

“We don't have a direct claim against Justify's people,” added Vienna. “The awards and what we want has to come from the CHRB. If they want to chase down Justify's owners for the funds, they can do that. We're not going to do that.”

A footnote in the judge's ruling criticizes the CHRB for entering into a settlement agreement with Ruis, for a stewards purse DQ hearing on the Santa Anita Derby. The stewards subsequently claimed they had no jurisdiction on the matter as it had already been decided–a decision the board then concurred with.

“It strains credulity that a state agency would enter into a settlement agreement providing the other party with illusory relief. That is, why would Respondent settle litigation with Petitioner knowing its complaint could not (as a legal matter) be adjudicated. To the extent the agency did mislead Petitioner, equitable estoppel would likely preclude the agency from depriving the other party with the benefit of its bargain,” the ruling states.

According to Vienna, “we were enticed to enter into an agreement that was not going to be honored.”

Because of the qualifying points system in place for the Kentucky Derby, Justify's berth in that year's contest was incumbent upon his running first or second in the Santa Anita Derby.

When asked if the ruling puts into question Justify's Kentucky Derby win, therefore, Vienna pointed to a similar case he had previously litigated “in which a horse's eligibility was valid until it was disproven.”

“At the time of the running of the Derby, Justify was eligible based on the then-pending decision,” said Vienna. “Subsequently today, that decision was overturned. But at the time he participated in the Derby he had, for all intents and purposes, achieved the right to run in the Derby.”

Vienna added, “if the board had done what they should have done in the first place, he would have been disqualified, and that issue of whether he had enough points for the Derby would have been decided back then.”

Said Vienna, “There's no question that Justify's a very good horse and a great sire, and that Bolt d'Oro's a good horse and a great sire.”

He added, “I'd like to see everybody get back to racing and not fighting.”

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Latest Bolt d’Oro Winner Scores for Ruis

2nd-Churchill Downs, $121,905, Msw, 6-19, 2yo, f, 4 1/2f, :52.45, ft, 1 length.
BOLTS N RAINBOWS (f, 2, Bolt d'Oro–On Rainbow Bridge {MSW, $333,202}, by Bold Executive) became the sixth winner for her hot-starting freshman sire (by Medaglia d'Oro) Sunday, but first to carry the same green Ruis Racing silks as the 2017 GI Del Mar Futurity and GI FrontRunner S. winner himself. Backed down to 3-1 off an ambitious 10-1 morning-line quote, the homebred broke well, but was out-footed by a few early and sat midpack. She still hadn't really gotten into gear as they entered the lane and second timer Black Forest (Frosted) took over, but Mitchell Murrill worked her out into the clear and away from the kickback by midstretch and she proceeded to quicken nicely and inhale that foe for an ultimately comfortable one-length tally. Mick Ruis's operation purchased the winner's dam–a precocious two-time stakes winner a juvenile on the Woodbine synthetic–for $65,000 at KEENOV '17 while in foal to Kantharos. The resulting foal won as a late November juvenile for the Ruis family, but was eventually claimed away. Bolts N Rainbows has an unraced 3-year-old half-brother by another former Ruis runner in War Envoy (War Front). On Rainbow Bridge has since been exclusive with Bolt d'Oro. She failed to produce a foal in 2021, but had a Bolt colt this term. Spendthrift resident Bolt d'Oro, whose juveniles took the sales by storm this year with seven horses fetching $500,000 or more and up to the $1.2-million top price paid by Spendthrift at Fasig-Tipton Gulfstream, was represented some 23 hours earlier by pricey and good-looking Monmouth debut winner Major Dude. Lifetime Record: 1-1-0-0, $69,460. Click for the Equibase.com chart or VIDEO, sponsored by TVG.
O/B-Ruis Racing LLC (KY); T-Chris A. Hartman.

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Judge Rules In Favor Of Ruis Racing In Lawsuit Over Justify’s Santa Anita Derby Victory

The following press release was issued on Friday, Dec. 10, by Carlo Fisco and Darrell Vienna, attorneys for horse owner Mick Ruis and Ruis Racing, who sued the California Horse Racing Board over the regulatory agency's decision not to file a complaint for a medication violation in the case of 2018 Santa Anita Derby winner Justify. The eventual Triple Crown winner was found to have the prohibited drug scopolamine in his system after a post-race sample was tested, but the board voted in executive session to have the matter dropped, with no complaint filed against trainer Bob Baffert and no consideration of a purse disqualification for Justify.

Ruis Racing owned Bolt d'Oro, the Santa Anita Derby runner-up, who would have been in line for the race's $600,000 first-place purse (he earned $200,000 for second).

Press Release:

This morning, Los Angeles County Superior Court Judge Mitchell L. Beckloff overruled the CHRB's attempt to have the purse disqualification matter dismissed involving the horse Justify and allowed the matter to go forward. Ruis Racing LLC has alleged that the CHRB's failure to disqualify Justify from the 2018 Santa Anita Derby after testing positive for a prohibited substance was a violation of its own mandatory rules.

Ruis Racing attorneys Carlo Fisco and Darrell Vienna were encouraged by today's decision and look forward to finally bringing this matter to trial. Carlo Fisco stated: “We have a long way to go but are pleased that the court confirmed our client's undeniable claim in pursuing this case. Today was a technical hurdle introduced by the CHRB in attempt to escape its responsibility for the Justify debacle. We remain confident that the trial on this matter will expose the legal improprieties of the former CHRB Board and its former Equine Medical Director as well as the utter refusal by the CHRB Board of Stewards to correct an obvious injustice.”

Trial is expected to occur in mid-2022.

The post Judge Rules In Favor Of Ruis Racing In Lawsuit Over Justify’s Santa Anita Derby Victory appeared first on Horse Racing News | Paulick Report.

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