Judge hits brakes on 1 lawsuit against HISA, defers to another

A federal judge in Louisiana put a 15-month-old lawsuit against the Horseracing Integrity and Safety Authority on hold Thursday, saying he wanted to hear first what a higher court says about the legality of the sport’s federal regulator.

The story was first reported by Thoroughbred Daily News.

Approving a HISA request for a stay order to hit the brakes on the case, district judge Terry Doughty in Monroe, La., concluded by declaring, “This order shall not be considered a dismissal or disposition of this matter.”

Doughty said the lawsuit led by Louisiana and West Virginia racing authorities as well as the Jockeys’ Guild should wait for a separate case to work its way through the Fifth Circuit Court of Appeals in New Orleans. That case is being led by the National Horsemen’s Benevolent and Protective Association.

Thursday’s order came one day after a recommendation was posted by federal magistrate judge David Ayo, who was sharply critical of the overlapping lawsuits brought by opponents of HISA. Ayo called the case brought by Louisiana and West Virginia “the result of deliberate strategy and not excusable neglect and, for that reason, is a ‘bad-faith amendment’ within the Fifth Circuit’s interpretation of that term.”

Ayo also called the plaintiffs’ legal strategy “an abuse of procedure and an impermissible use of judicial resources. Finally, there can be no doubt that the shuffling of plaintiffs from one suit to another in this manner prejudices (HISA). This litigation tactic is duplicative and the very definition of ‘piecemeal.’ ”

Louisiana, West Virginia and the other plaintiffs have two weeks to contest Doughty’s ruling. In the meantime, with their lawsuit on hold, there are four other cases still open against HISA and its overlord, the Federal Trade Commission. The gist of the complaints is that HISA oversteps constitutional boundaries that limit what a private organization may do on behalf of the government.

The separate case in the Fifth Circuit is scheduled to move forward with oral arguments Oct. 4.