PA Horsemen's Group Board Dispute Spills Into Court
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A divided board of directors of the Pennsylvania Thoroughbred Horsemen's Association is embroiled in an internal dispute that has spilled over into a state court lawsuit.
A court petition filed in September alleges financial improprieties and self-dealing among prior leadership of the PTHA, particularly former president Sal DeBunda, who left office in 2022 after being defeated in an election by Robert Hutt.
The suit was brought by Hutt and John Julia, a board member. It seeks removal of seven directors named as respondents: Jeffrey Matty Jr., Kathleen DeMasi, Charles Asensio, Jack Armstrong, Scott Lake, Robert Reid Jr., and John Servis. Matty also serves as executive director. DeBunda was not named as a party in the suit.
On Oct. 21 the director respondents filed a response denying the petition's factual allegations and setting up a defense that the complaint does not comply with Pennsylvania legal requirements. They claim the court has no authority to act on the demand for removal of directors unless the petitioners have first complied with a legal requirement "relating to judicial supervision of corporate action." No such judicial supervision has been implemented, according to the response.
The response was made following a court order directing the respondents to show cause why the petition for their removal should not be granted. It asks that the petition be dismissed. The court is now faced with a decision on whether to allow the lawsuit to proceed or to dismiss it outright.