Kentucky Derby Bettors’ Claims Barred, Churchill Downs Says

Kentucky Derby racetrack owner Churchill Downs Inc. told a federal court that state regulations bar a proposed class action by bettors who say they were deprived of winnings when Medina Spirit—a horse later disqualified—was named first-place finisher in the 2021 derby.

The horse was disqualified for testing positive for a substance banned on race day.

As required by regulations promulgated by the Kentucky Horse Racing Commission, Churchill Downs said, it made payouts to derby bettors based on the official race results as declared by the stewards, who “act solely as agents of the KHRC, not Churchill Downs,” according to a motion filed Wednesday in the U.S. District Court for the Western District of Kentucky. Stewards are horse racing officials who act as referees.

The bettors, “like everyone else who wagers on the derby,” are subject to the regulations and “cannot now complain that they would have fared better if Churchill Downs had usurped the KHRC’s power by declaring a different order of finish,” Churchill Downs said in a motion to dismiss.

Even if Kentucky law allowed the plaintiffs to pursue claims that displace the regulations, they would still fail because they are “based on the hopelessly speculative theory that an alternative running of the 147th Kentucky Derby would have concluded with precisely the same order of finish as if Medina Spirit had not competed,” the motion said.

The allegation that Churchill Downs “erred in declaring” the official winner is legally wrong because only the stewards appointed by the KHRC have that authority, the motion said.

The plaintiffs previously filed the proposed class action in May 2021, but voluntarily dismissed the case in September for procedural reasons.

They refiled the suit in state court on Feb. 21, 2022, the same day the KHRC announced that the stewards disqualified Medina Spirit, stripped him of the derby win, and ruled a new order of finish as Mandaloun, Hot Rod Charlie, Essential Quality, O Besos, and Midnight Bourbon.

Churchill Downs removed the case to federal court March 16.

The complaint includes claims of negligence, breach of contract, unjust enrichment and violations of the Kentucky Consumer Protection Act against Churchill Downs and negligence against Medina Spirit trainer Bob Baffert.

Judge David J. Hale is assigned to the case.

Bahe Cook Cantley & Nefzger PLC represents the proposed class.

Stites & Harbison PLLC represents Churchill Downs.

Miller, Griffin & Marks PSC represents Baffert.

The case is Mattera v. Baffert, W.D. Ky., No. 22-cv-00156, 3/23/22.