Churchill Downs Cites Anti-SLAPP Act Against Zedan Suit

Churchill Downs Inc. has cited Kentucky's anti-SLAPP statute in a motion to dismiss most portions of a lawsuit brought by prominent owner Amr Zedan that seeks to dismantle Churchill Downs' suspension of Bob Baffert from racing at its tracks.

The motion was filed April 8, three business days after Zedan's suit was filed in Jefferson Circuit Court, and about an hour before a hearing set by Zedan for consideration and scheduling of his motion for temporary injunction. The hearing took place in the Business Court of Jefferson Circuit Court, where Judge Mitch Perry scheduled an April 15 hearing on CDI's motion to dismiss.

The legal basis of CDI's motion is Kentucky's Uniform Public Expression Protection Act, also known as an anti-SLAPP statute. SLAPP is an acronym for strategic lawsuits against public participation. CDI says its defense under the statute was triggered when Zedan asserted claims hinging on CDI’s June 2021 announcement of a two-year suspension of Baffert from racing at its tracks, followed by an announcement of an extension of the ban in July 2023 through the end of 2024.

Baffert initially was suspended after Medina Spirit, winner of the 2021 Kentucky Derby, tested positive for a medication banned on race day by Kentucky regulations.

According to the Institute for Free Speech, Kentucky's anti-SLAPP statute is designed to protect certain constitutionally protected rights and extends to "freedom of speech...on a matter of public concern" along with other rights such as freedom of the press and the right to assemble. Under the terms of the statute, discovery methods such as depositions and production of documents are stayed, or prohibited, until the motion is resolved or unless the court allows specific discovery of information not reasonably available without discovery.

At the hearing Monday morning, Zedan's attorneys said they want to take limited discovery focused on internal communications at CDI prior to the suspension. Perry didn't rule that out but commented, "The backstory is not very helpful."

"What proof do I need to rule on this?" he asked. "I don't want a circus, that's not going to happen in this court." Perry said he wants to know "why they did what they did" and "how they made a decision." Ultimately, Perry reserved ruling on the discovery request until April 15, at which time he said he will rule on CDI's motion to dismiss. Perry noted, "I can take testimony at any time," indicating he might consider hearing testimony during a hearing in lieu of discovery.

A memorandum of law filed by CDI points out the statute gives the anti-SLAPP defense priority over other issues and thus, "This Court must therefore decide this motion to dismiss before deciding Zedan’s motion for a temporary injunction...."

There are time constraints on both parties and the court. By rule, horses entered in this year's Kentucky Derby (G1) must be at Churchill Downs by 10 a.m. April 27. Zedan's most important mission is trying to get his Arkansas Derby (G1) winner Muth  into the race.

Perry suggested he was willing to also hear Zedan's motion for temporary injunction April 15, which met resistance from CDI. "We can pencil in a second day for the hearing if we need it," Perry said. "I don't want to be in here at midnight the night before he's supposed to be in the barn. That's what I'm trying to do for you. I just want to do my part as fast as possible."

The statute, which is extensive, also says all other matters in a lawsuit must be stayed, or stopped, until the anti-SLAPP motion is decided, and further that the stay will remain in effect while a party appeals the initial ruling, except that the trial court for good cause may hear and rule on a motion unrelated to the anti-SLAPP motion.

In its pleadings, Churchill Downs Inc. says the Zedan lawsuit is an attack on a judgment entered against the Hall of Fame trainer about a year ago in U.S. District Court in Louisville when Baffert sought to undo the ban. Zedan did not participate in that challenge to the suspension. Conversely, Baffert is not a party to Zedan's pending case.

Almost all Derby-qualifying points races concluded last weekend. The only remaining points race, the Lexington Stakes (G3), awards minor points and is set for April 13 at Keeneland. By house rule, Churchill does not award points to horses under the care of trainers suspended by the track. The only such known trainer in this scenario is Baffert.

"This lawsuit...demands extraordinary and unprecedented relief—an order requiring Churchill Downs at the 11th hour to disqualify horses that have earned berths in this year’s Kentucky Derby on May 4, and replace them with horses owned by Zedan and trained by Baffert," Churchill Downs asserted, calling the suit a "demand for a last-minute judicial takeover of the world’s most storied horse race."