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IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF KENTUCKY
ANTHONY )
MATTERA and )
BRAD KENT, )
Plaintiffs )
v. ) No. 23-cv-0520
ROBERT A. )
BAFFERT and )
CHURCHILL )
DOWNS, INC., )
Defendants )
Complaint
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2. Plaintiff Anthony Mattera wagered on Mandaloun to win the 2021 Kentucky Derby.
3. Plaintiff Brad Kent wagered on Hot Rod Charlie to place (finish second) in the 2021 Kentucky Debry.
4. Defendant Churchill Downs, Inc. (“Churchill Downs”) owns and operates Churchill Downs Racetrack.
5. Defendant Robert Baffert (“Baffert”) is a trainer of racehorses.
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9. Churchill Downs Racetrack hosts the Kentucky Derby, the first leg in racing’s “Triple Crown.”
10. As the host of the race, Churchill Downs administers pari-mutuel wagering on the Derby. In pari-mutuel wagering, bettors wager against other bettors, winning a share of the total pool of money wagered on the race. The payout is based on a set formula for dividing the pool of money.
11. After completion of the Derby, stewards appointed by the Kentucky Horse Racing Commission declare the race and the order of finish “official” for wagering purposes, at which point bettors exchange winning tickets for money due with Churchill Downs.
12. That official order of finish also governs prize money awarded to owners of race horses and the Churchill Downs record books.
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16. Baffert trained Medina Spirit for the 2021 Kentucky Debry.
17. Baffert has a publicly available record of horse racing medical violations. Two months prior to the 2021 Kentucky Debry, the Kentucky Horse Racing Commission disqualified a different Baffert-trained horse from a race at Churchill Downs that testified positive for a banned substance, betmathasone.
18. Medina Spirit crossed the finish line first in the 2021 Kentucky Derby.
19. The stewards marked the official order of finish as follows: Medina Spirit; Mandaloun; Hot Rod Charlie; Essentially Quality; O Besos; and Midnight Bourbon.
20. Based on that official order of finish, Churchill Downs distributed money to bettors for pari-mutuel wagering purposes and prize money to horse owners.
21. Churchill Downs paid out wagers based on that official order of finish.
22. Neither Mattera nor Kent won his wager based on that official order of finish.
23. Following the race, Medina Spirit testified positive for betmathasone, the same substance for which a different Baffert-trained horse was disqualified months prior.
24. On February 21, 2022, more than nine months after the race, the stewards disqualified Medina Spirit. The stewards announced a revised official order of finish: Mandaloun; Hot Rod Charlie; Essentially Quality; O Besos; and Midnight Bourbon.
25. Churchill Downs recorded the revised order of finish in its records and records for the Kentucky Derby.
26. Churchill Downs redistributed prize money to owners based on the revised official order of finish.
27. Churchill Downs did not pay pari-mutuel wagers based on the revised official order of finish.
28. Mattera placed a wager that lost based on the first official order of finish. Mattera would have won his wager based on the revised official order of finish following the disqualification of Medina Spirit. Churchill Downs failed to pay Mattera on his wager based on the revised official order of finish.
29. Kent placed a wager that lost based on the first official order of finish. Kent would have won his wager based on the revised official order of finish following the disqualification of Medina Spirit. Churchill Downs failed to pay Kent on his bet based on the revised official order of finish.
30. Baffert entered an ineligible horse, Medina Spirit, in the race, affecting the official order of finish and the pay-outs on pari-mutuel wagering to Mattera. Had Baffert not entered that ineligible horse, Mattera would have won his wager based on the revised official order of finish without Medina Spirit.
31. Baffert entered an ineligible horse, Medina Spirit, in the race, affecting the official order of finish and the pay-outs on pari-mutuel wagering to Kent. Had Baffert not entered that ineligible horse, Kent would have won his wager based on the revised official order of finish without Medina Spirit.
Count I: Breach of Contact (Plaintiff Mattera v. Defendant Churchill Downs; Plaintiff Kent v. Defendant Churchill Downs)
Count II: Negligence (Plaintiff Mattera v. Defendant Baffert; Plaintiff Kent v. Defendant Baffert)
WHEREFORE, Plaintiffs pray the court for:
1. Damages in the form of unpaid winning wagers made by plaintiffs based on the revised official order of finish in the 2021 Kentucky Derby following the disqualification of Medina Spirit.
Substantive Law:
Gonzalez v. Johnson (Ky. 2019):
To state a claim for negligence under Kentucky law, plaintiff must prove: 1) the defendants owed the plaintiffs a duty of care; (2) the defendants breached that duty; (3) causation; and (4) damages, i.e., that the plaintiffs suffered an actual and compensable injury or harm.
Crestwood Farm Bloodstock v. Everest Stables, Inc. (Ky. 2009):
Plaintiffs in a breach of contract action must allege and prove recoverable and compensable harm, meaning the loss of something to which they were entitled under a contract, and compensable damages resulting from that harm.
Chapter 810 Kentucky Admin. Regs: Horse Racing
§ 6:030: Coverage of Regulations
These regulations govern pari-mutuel wagering on all horse racing within the Commonwealth of Kentucky. By placing a pari-mutuel wager within the Commonwealth of Kentucky, the bettor consents to these regulations.
§ 4:040: Finality:
(16) A steward shall post the sign establishing the official order of finish.
(17) After the official sign is posted for a race, the official order of finish for pari-mutuel wagering purposes shall be final. No subsequent action shall set aside the official order of finish for the purposes of pari-mutuel wagering.
(18) If a horse is disqualified after a race has been declared official for pari-mutuel payoff and causes revision of the order of finish, the pari-mutuel payoff shall not be affected in any way.
(19) If a horse is disqualified after a race has been declared official and causes revision of the order of finish, the Commission shall adjust the record books to reflect the new official order of finish.
(20) If a horse is disqualified after a race has been declared official and causes revision of the order of finish, the Commission shall recalculate and award prize winnings to owners to reflect the new official order of finish.
Defendants file a joint to dismiss under FRCP 12(b)(6), challenging the element of harm and damages as to each claim.
For Defendants, argue in support of the motion as to each claim, including the appropriate terms of dismissal of either claim.
