Baffert Sues CDI, Carstanjen, Rankin Over Suspension

Embattled Hall of Fame trainer Bob Baffert is gearing up for another fight, this time with Churchill Downs Inc., which banned the trainer for participating from races at all of its tracks, including its flagship oval in Louisville, Ky.—which notably hosts the Kentucky Derby Presented by Woodford Reserve (G1). The trainer has sued on the grounds his constitutional rights to due process have been violated. The lawsuit was filed March 1 in U.S. District Court for the Western District of Kentucky against Churchill Downs, Inc. (CDI), CDI CEO William C. Carstanjen, and CDI board chairman R. Alex Rankin, asking a federal judge to overturn Baffert's suspension from CDI races through 2023. The house suspension is separate from a Kentucky Horse Racing Commission suspension of 90 days set to go into effect March 8. Both actions were taken due to the post-race sample and split sample taken from Medina Spirit after the 2021 Kentucky Derby which tested positive for the corticosteroid betamethasone, a therapeutic medication prohibited on race day in Kentucky. Medina Spirit has been disqualified from his Kentucky Derby win as a result. CROSBY & ANGST: Churchill Bans Baffert After Split Sample Confirmation Baffert began getting crosswise with Churchill Downs when his champion filly Gamine tested positive for betamethasone after competing in the 2020 Longines Kentucky Oaks (G1). In February of 2021 the filly was disqualified from her third-place finish in the Oaks and Baffert was fined $1,500. Also in 2020, Gamine tested positive for lidocaine after winning an allowance optional claiming race May 2 at Oaklawn Park and on the same day Baffert's runner Charlatan, who won one division of the Arkansas Derby (G1) also tested positive for lidocaine. In both cases, Baffert said the positives were caused by contamination. The horses were initially disqualified from their wins but the Arkansas Racing Commission later reversed that decision but left in placed a $5,000 fine to Baffert for each incidence. At Del Mar July 25, Baffert-trained Merneith tested positive for dextrorphan after she ran second in an allowance-level race. Baffert was fined $2,500. Then came the 2021 Kentucky Derby and the betamethasone positive for Medina Spirit. "CDI has consistently advocated for strict medication regulations so that we can confidently ensure that horses are fit to race and the races are conducted fairly," said Carstanjen June 2 when CDI announced Baffert's two-year suspension. "Reckless practices and substance violations that jeopardize the safety of our equine and human athletes or compromise the integrity of our sport are not acceptable and as a company we must take measures to demonstrate that they will not be tolerated. Mr. Baffert's record of testing failures threatens public confidence in Thoroughbred racing and the reputation of the Kentucky Derby. Given these repeated failures over the last year, including the increasingly extraordinary explanations, we firmly believe that asserting our rights to impose these measures is our duty and responsibility." In filing suit, Baffert's attorney Clark O. Brewster of Brewster & De Angelis said: "The notion that Churchill Downs, which is not even tasked with regulating horse racing in Kentucky, could unilaterally ban a trainer by an edict coupled in a press release without having the facts or any semblance of due process should arouse outrage in any fair-minded person." Baffert's attorneys have maintained Medina Spirit was treated for a skin condition with a topical ointment known as Otomax, which contains betamethasone valerate. They contend Kentucky regulations only apply to betamethasone acetate, which they argue is from injections and is not found in the sample. In June during a court hearing in Kentucky before the urine sample was sent to the New York lab, Jennifer Wolsing, general counsel for the KHRC, said the betamethasone prohibition is "not differentiated" between creams and injections in the regulator's list of prohibited substances. The argument about potential forms of betamethasone figures to be a major point of contention under any appeal. "The facts are clear, and Churchill Downs knows them but refuses to acknowledge them," Brewster said. "Churchill Downs knows the post-race test report occurred as a result of the use of a harmless ointment known as Otomax. They know it was prescribed by Medina Spirit's treating veterinarian and properly and timely reported to the data bank the day it was dispensed. They know no rule was violated, and the ointment could never have enhanced Medina Spirit's performance. To maintain otherwise is absurd. And Churchill Downs and Mr. Carstanjen knew full well that imposing its suspension, based on zero factual or legal support, would give illegitimate credibility to a false narrative about Bob, creating pressure on the Kentucky Horse Racing Commission stewards to take action against him, too. "We look forward to showing the court that this selective and arbitrary ban by Churchill Downs, Mr. Carstanjen, and Mr. Rankin is unlawful and unfair—and to ensuring Bob can get back to the winner's circle in May," Brewster added. A statement from Churchill Downs said the lawsuit was disappointing but certainly not surprising. "His claims are meritless and consistent with his pattern of failed drug tests, denials, excuses, and attempts to blame others and identify loopholes in order to avoid taking responsibility for his actions," read the statement. "These actions have harmed the reputations of the Kentucky Derby, Churchill Downs and the entire Thoroughbred racing industry. Churchill Downs will fight this baseless lawsuit and defend our company's rights. What's at stake here is the integrity of our races, the safety of horses and the trust of the millions of fans and bettors who join us every year on the first Saturday in May." ANGST & KING: Medina Spirit Disqualified from 2021 Kentucky Derby Win The March 1 lawsuit attacks CDI's suspension of Baffert on multiple fronts. It accuses Carstanjen and Rankin of "arbitrarily and capriciously" singling out Baffert with a "baseless sanction in violation of Baffert's procedural and substantive due process rights;" claims CDI unlawfully excluded a licensed trainer when that right solely is owned by the state racing commission; and claims CDI violates antitrust laws because of its position nationally through its Road to the Kentucky Derby points system. Because of the suspension, the lawsuit argues, "Baffert is unable to participate in the upper echelons of Thoroughbred racing and training, his horses have reduced value on the market nationally, his training services have reduced value on the market nationally, and he is unable to compete for purses and prizes at CDI tracks." The filing claims a conspiracy in restraint of trade through "concerted, anti-competitive behavior" that targets horses trained by Baffert directly or indirectly with the "intent to destroy Baffert's unique owner/trainer relationships. Destroying these relationships has the potential to raise the value of horses owned by Rankin and other directors/officers/agents at CDI while reducing or eliminating the value of Baffert-trained horses." It also accuses CDI of possessing unlawful monopoly power through its ownership of the Kentucky Derby and Kentucky Oaks, and claims it has interfered with Baffert's contractual relationship with his owners and employees by "robbing him of the advantages, economic or otherwise, that he would have derived had he been able to use his Kentucky license to race on CDI tracks." The lawsuit seeks to have the suspension lifted by an injunction even as Baffert appeals the ruling by the KHRC. "Neither the public nor CDI would be harmed if Baffert were allowed to continue to participate in CDI races while a final determination in the proceeding before the Racing Commission is pending. CDI can take alternative precautions, including pretesting requirements, to protect its interest and brand. Furthermore, CDI is already protecting its interests; qualifying points for any trainer are conditioned upon compliance with medication rules in the races where those points are at stake," the suit states. The suit seeks punitive damages and trebled damages, which are allowed under federal law for antitrust violations and would be determined at trial, plus compensation for attorney's fees.