Owner Amr Zedan's quest for a temporary injunction that would require Churchill Downs to allow Arkansas Derby (G1) winner Muth into the Kentucky Derby (G1) field was denied April 18 by a judge in Louisville, Ky.
Muth is trained by Hall of Famer Bob Baffert, who is suspended from entering and racing horses at tracks owned by Churchill Downs Inc. Baffert was initially suspended for about two years after Medina Spirit, owned by Zedan's Zedan Racing Stables, won the 2021 Kentucky Derby only to be disqualified when a post-race drug test detected betamethasone, a substance not allowed in Kentucky on race day. The suspension was extended by CDI last summer.
Zedan contends he bought millions of dollars worth of yearlings and 2-year-olds during the initial suspension, thinking he might get one of them into the Derby after the ban expired and Baffert had no more drug positives. Based on those facts, his attorney sued CDI on a theory of promissory estoppel—meaning that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise. Zedan also asserted other grounds for relief.
Jefferson Circuit Judge Mitch Perry denied Zedan's temporary injunction motion, filed April 3, after three hearings to schedule matters and hear arguments. Perry's ruling can be appealed to the Kentucky Court of Appeals.
"We are disappointed in the court's decision on our request for temporary relief, as we believe the court did not recognize the significant investment Zedan Racing has made, based on statements by Churchill Downs that if this trainer had no additional violations, Zedan Racing's horses would be able to compete," a spokesperson on behalf of Zedan remarked. "We will appeal this ruling on an emergency basis as soon as possible. The goal of our effort remains to ensure our horse Muth will have a once-in-a-lifetime opportunity to compete in the 150th Run for the Roses on May 4."
Zedan owned Medina Spirit and joined Baffert in a multi-year effort to set aside the horse's Derby disqualification before they summarily dropped the matter in January, a week before any horse in Baffert's stable had to be moved to another stable to be eligible for this year's Derby.
In order to establish a lawful avenue to seek redress for a wrongdoing, including the pursuit of injunctive relief, a claimant must demonstrate standing to bring a case. Perry wrote he has "serious doubts concerning the Plaintiff’s third-party standing to essentially challenge Churchill Down’s ban on behalf of Mr. Baffert," but didn't throw the case out on that basis and moved on to its substance.
"In Kentucky, a party moving for injunctive relief must show," Perry wrote, "(1) irreparable injury is probable if injunctive relief is not granted; (2) the equities—including the public interest, harm to the defendant, and preservation of the status quo—weigh in favor of the injunction; and (3) there is a 'serious question warranting a trial on the merits.'”
In finding the irreparable injury element is "neutral at best," Perry referred to Zedan's practice the past two years of transferring horses with Derby potential out of Baffert's stable to other trainers, something he did not do this year, and the fact Zedan has known about the extension of Baffert's ban since July 2023.
In considering the balance of equities, or elements of fairness, Perry wrote the pendulum "weighs strongly against granting injunctive relief. The Defendant here (CDI) will be severely prejudiced (if relief is granted)," Perry wrote, citing CDI's duty to ensure rules are followed and the public's trust in the integrity of racing at CDI tracks.
"The Court is also deeply concerned about the innocent third parties who will have their horses removed from the Derby field to make room for the Plaintiff’s horse should the Court grant injunctive relief," Perry wrote. "These are entities who have done nothing wrong. ... There could be nothing more unfair than that."
As to whether Zedan has pleaded a case demonstrating a substantial question on the merits, another cog in considering whether a temporary injunction should be granted, "The Court again views this factor as neutral at best," Perry wrote.
Perry also denied CDI's motion to dismiss Zedan's case based on the Uniform Public Expression Protection Act, adopted by Kentucky in 2022. Similar legislation has been adopted in other states, and it is designed to combat what Perry describes as "a rising level of so called 'SLAPP' suits," an acronym for strategic litigation against public participation.
"Churchill Downs has failed to establish that UPEPA applies to this situation," Perry wrote. "Here, it is the Defendant’s action in banning Bob Baffert that is being challenged and forms the basis for this lawsuit. The Defendant’s speech is secondary to that."
Perry also denied CDI's motion to dismiss based on a commercial exception contained in UPEPA for speech related to business activities.
Churchill Downs initially claimed that its anti-SLAPP defense precluded the court from considering other claims until the defense was fully litigated, including an appeal. During an oral argument the day before Perry's ruling, CDI appeared to back off that position. Perry's ruling says Churchill Downs's initial position is invalid and further declares the portion of the statute requiring a stay of proceedings unconstitutional.
"The court's rejection of the defendant's motion to dismiss affirms our view that it was nothing more than a transparent delay tactic aimed at ensuring its unjust ban remained in place for the 150th Kentucky Derby," Zedan's spokesperson remarked.
CDI said in a statement it "was pleased with the Court’s decision today and believe Mr. Zedan may suffer from a case of 'Derby Fever,' which is known to spread with exposure to horses and is contagious this time of year. Symptoms can contribute to questionable judgment and in extreme cases can result in litigious behavior. There is no known cure. Nevertheless, we have communicated clearly about the rules of entry, which are the same for everyone and are non-negotiable. Contenders cannot sue their way into the Kentucky Derby.
"We wish Mr. Zedan well in the future and appreciate both his passion for the sport and his desire to see his horses compete on the first Saturday in May."
