Judge Orders Bettors' Case Against Baffert to Mediation

More than a year after a New Jersey federal court was fully briefed on a motion to dismiss a lawsuit filed by unhappy bettors against trainer Bob Baffert, the matter was ordered to mediation by the trial judge.

"[I]t appears that mediation of this civil action would conserve the resources and be in the best interests of the Court and of the parties," wrote Judge Julien Xavier Neals in an order dated March 13. "In the interest of efficient case management, Defendants' motion to dismiss is hereby administratively terminated pending mediation."

The suit was filed in July 2021, about two months after 2021 Kentucky Derby (G1) post-race testing showed Medina Spirit , who crossed the finish line first, was positive for betamethasone. After the suit was filed, stewards disqualified Medina Spirit. An appeal of the stewards' ruling is pending before the Kentucky Horse Racing Commission.

BloodHorse reached out to attorneys for both sides of the dispute via email. W. Craig Robertson III, lead attorney for Baffert, indicated that while they will comply with all court orders, the referral to mediation will not yield results.

"This case is frivolous," Robertson wrote. "It was frivolous the day it was filed and it remains that way today.  No offers of settlement have or ever will be made. The case should be dismissed, if not voluntarily, then by the Court."

The plaintiffs' attorney, Gary S. Graifman, did not respond to BloodHorse's inquiry.

Calling Baffert "the Lance Armstrong of the horse racing world," 30 plaintiffs that include 2012 National Handicapping Championship winner Michael Beychok argue that but for Baffert entering Medina Spirit, they would have won substantial bets on the Derby. Their case is grounded on Medina Spirit's test positive and Baffert's multiple drug violations going into the Derby, what they call Baffert's alleged repeat violations of federal and state racketeering statutes, along with common law and equitable fraud claims.

Robertson's motion to dismiss cited Kentucky law stating disqualifications do not affect gambling payoffs once they are declared official by stewards, that no other method of collecting losing horse racing bets is allowed in Kentucky, and arguing that plaintiffs' claims were based on a hypothetical race that didn't include the front-running Medina Spirit.

Baffert's motion to dismiss was filed on Nov. 15, 2021. Plaintiffs responded the next month, and Baffert's reply came the following Jan. 12.

Another case based on Medina Spirit's drug positive was filed in March 2022 by bettors in federal court in Louisville, Ky. by Anthony Mattera and 17 others against Baffert and Churchill Downs. Churchill Downs and Bafffert filed motions to dismiss a year ago. Plaintiffs asked for court permission to amend their complaint six weeks later, which was opposed by the defendants. The last activity in the case, related to the request to amend, came in August 2022.