The Case at a Glance

A legal showdown is brewing between trainer Philip Serpe,the Horseracing Integrity and Welfare Unit (HIWU),the Horseracing Integrity and Safety Authority (HISA),and the Federal Trade Commission (FTC). At the heart of the matter is a Clenbuterol positive stemming from last August,a subsequent lawsuit filed by Serpe,and HIWU’s decision to forgo a potential $25,000 fine.

HIWU’s Decision and Serpe’s Response

HIWU’s decision not to pursue a fine against Serpe has ignited further controversy. Serpe argues that this move is a calculated attempt to undermine his federal court case against HISA and the FTC. His lawsuit includes the contention that he has been wrongfully denied his Seventh Amendment right to a jury trial.

According to a joint motion filed by attorneys for the FTC and HISA Authority, the lack of a monetary fine in the case moots Plaintiff’s seventh Amendment claim and removes any risk of cognizable harm with respect to it. They further stated, The Court should dispose of Plaintiff’s Seventh Amendment claim, and Plaintiff’s motion for a preliminary injunction relating to that claim.

Serpe’s legal team vehemently disagrees. They argue that the defendants’ motion is a strategic maneuver to prejudice Serpe’s claims. Defendants’ late-stage motion should be seen for what it probably is–part of a concerted effort with HIWU to prejudicially moot serpe’s claims during the pendency of this case. Defendants’ motion should be swiftly and soundly rejected, Serpe’s attorneys stated in their response.

Allegations of Alignment and Lack of Precedent

Serpe’s attorneys contend that HIWU’s decision is unprecedented. They claim to be unaware of any other anti-doping and medication control case in wich HIWU has voluntarily decided not to seek a fine against a charged person. They also allege an alignment of actions between HIWU’s enforcement decisions and the defendants’ litigation.

The FTC,which oversees the HISA Authority,is charged with ensuring openness and integrity in the authority’s operations.

HIWU has again made a decision that is obviously intended to moot Serpe’s requests for relief–almost as if Defendants need HIWU not to seek a fine to defeat serpe’s Seventh Amendment claim and/or remedy the irreparable harm that Serpe is suffering, Serpe’s attorneys wrote in their filing.

HISA spokesperson Mandy Minger stated that the agency would not comment on the matter.

The Initial Clenbuterol Positive

The case originated from a race on Aug. 10 of last year, when the Serpe-trained Fast Kimmie won a four-horse, off-the-turf $30,000 claimer at Saratoga for owner WellSpring Stables.

Both the A and B samples confirmed the presence of Clenbuterol.

On Oct. 10, HIWU formally issued Serpe a charge letter for the alleged violation. One week later,serpe filed suit against the FTC and the HISA Authority in the United States District Court (Southern District of Florida).

Serpe’s Lawsuit and Constitutional Challenges

Serpe’s lawsuit challenges the constitutionality of HISA and its regulations, joining a series of lawsuits aiming to strike down the federal law. The U.S.Supreme Court is expected to rule on HISA’s constitutionality either later this year or next year.

Serpe also argues that HISA violates his Seventh Amendment rights, drawing parallels between anti-doping and medication control cases under HISA and cases of fraud requiring jury trials.

Legal Arguments and Provisional Suspension

Attorneys for the FTC and the HISA authority have countered Serpe’s claims. In a January response to serpe’s motion for preliminary injunction, they argued that the Seventh Amendment claim is not ripe, meaning that it rests upon future events that may or may not occur.

Plaintiff cannot say whether there will be any subsequent government proceeding to which the Constitution applies.Even if there is, the type of remedy that will be reviewed there–an ‘all but dispositive’ Seventh Amendment consideration, the attorneys wrote, remains unknown.

HIWU initially imposed a provisional suspension against Serpe, but the HISA Authority later requested HIWU to limit the circumstances in which it imposed thes suspensions. As a result, Serpe’s provisional suspension was lifted last November, allowing him to resume training.

Recent Legal Maneuvering

This month has been marked by a flurry of legal activity in Serpe’s federal lawsuit, including oral arguments on April 10 on his motion for preliminary injunction.

The following day, the court ordered the parties to file supplemental briefs on whether the FTC had waived sovereign immunity as to the recovery of damages for constitutional injuries suffered by persons subject to enforcement actions under the Horseracing Integrity and Safety Act.

In their joint motion last week, the attorneys for the FTC and the HISA Authority requested the court to either vacate the order for supplemental briefs or extend the deadline, arguing that HIWU’s decision not to issue a fine against Serpe removes any risk of cognizable harm, and therefore, there is no longer any need to litigate this issue.

Serpe’s attorneys have asked the court to deny this request, stating that the defendants know they are vulnerable, if not likely to fail, on Serpe’s Seventh Amendment Claim, and that they appear to be working with HIWU to do everything they can to avoid the Court’s ruling.

Serpe also outlines a series of other legal requests covering various eventualities.

This includes how, if the court finds the FTC is not entitled to sovereign immunity or that the trainer is not suffering irreparable harm, the Court simply convert his preliminary injunction motion papers into a motion for summary judgment.

Alternatively, Serpe’s attorneys write, if the Court finds that Serpe’s Seventh Amendment claim is not ripe for summary judgment because the arbitration is not concluded, then Serpe respectfully requests that the Court withhold ruling on the motion for summary judgment until the arbitration is concluded, at which time the parties can submit the arbitration record and the Court can rule as a matter of law on summary judgment.

Serpe’s arbitration hearing in this case is reportedly scheduled for June 5 and 6.

FAQ: Key Questions Answered

• What is Clenbuterol? A bronchodilator, sometimes used in horses, but regulated due to its potential performance-enhancing effects.
• What is HIWU? The Horseracing Integrity and Welfare Unit, responsible for enforcing anti-doping and medication control rules in horseracing.
• What is HISA? The Horseracing Integrity and Safety Authority,the governing body overseeing HIWU and setting national standards for horseracing.
• what is the Seventh Amendment issue? Serpe argues he’s being denied his right to a jury trial, which he believes is guaranteed under the Seventh Amendment.
• Why did HIWU drop the fine? HIWU has not commented, but Serpe alleges it’s a strategic move to weaken his legal case.