Churchill Downs Inc. and horse trainer Bob Baffert aren’t liable to bettors who say they lost money when Medina Spirit was named winner of the 2021 Kentucky Derby before later getting disqualified, a federal appeals court said.
The claims failed because the Kentucky administrative regulations governing these wagers say that the first official order of finish is final, the US Court of Appeals for the Sixth Circuit said in an opinion by Judge R. Guy Cole Jr.
“Under that order, the plaintiffs lost their bets. For this reason, the complaint fails to state a claim upon which relief can be granted,” the court said, affirming the trial court’s ruling.
More than nine months after the race officials disqualified Medina Spirit for testing positive for betamethasone, a substance banned on race day. Their ruling redistributed prize money to horse owners based on a new order of finish.
The plaintiffs filed a proposed class action, alleging they were harmed because their bets would be winning wagers if the new order of finish counted for wagering purposes. The complaint included 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.
“A subsequent change in the order of finish may affect the purse and the history books, but it will not impact pari-mutuel wagering,” Cole said.
Judges Eric L. Clay and Rachel S. Bloomekatz joined in the opinion.
Bahe, Cook, Cantley & Nefzger PLC represented the proposed class. Miller Griffin & Marks PSC represented Baffert. Stites & Harbison PLLC represented Churchill Downs.
The case is Mattera v. Baffert, 6th Cir., No. 23-5750, 5/2/24.
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