HISA and FTC face setback in Serpe Clenbuterol case as judge rejects attempt to dismiss Seventh Amendment claim.
A federal judge has ruled that the Horseracing Integrity and Welfare Unit’s (HIWU) recent decision to drop a $25,000 penalty against trainer Philip Serpe is insufficient to dismiss his lawsuit claiming violation of Seventh Amendment rights to a jury trial.
Judge David Leibowitz of the United States District Court (Southern District of Florida) determined on April 30 that HIWU’s email notification about abandoning the fine was “barebones” and inadequate to resolve the constitutional questions at the center of the case.
The ruling comes six days after Serpe argued that HIWU’s attempt to withdraw the monetary penalty was a strategic maneuver designed to undermine his legal challenge against the Horseracing Integrity and Safety Authority (HISA) and the Federal Trade Commission (FTC).
The case stems from a Clenbuterol positive that has evolved into a broader constitutional challenge.
In their April 24 motion, attorneys for the FTC and HISA Authority had argued that without a monetary fine, “Plaintiff’s Seventh Amendment claim and removes any risk of cognizable harm with respect to it.” They requested the judge “dispose of Plaintiff’s Seventh Amendment claim, and Plaintiff’s motion for a preliminary injunction relating to that claim.”
Serpe’s legal team immediately countered that the “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.”
Judge Leibowitz wrote that he “need not await” a reply from the defendants before ruling on this matter. His order partially granted and partially denied the motion to vacate.
For the case to proceed, the judge has ordered both the FTC and HISA Authority to file detailed declarations specifying:
- All specific forms of relief being sought against Serpe in the upcoming June 2025 arbitration and any subsequent proceedings
- All specific forms of relief not being pursued against Serpe
Additionally, the defendants must address two critical legal questions:
- Whether HIWU, the Authority, and the FTC are immune from suit under sovereign immunity or if that immunity has been waived
- Whether these entities have discretion to permanently stipulate that certain forms of relief will never be sought against Serpe under relevant statutes and regulations
The defendants have been given 10 days to comply with the judge’s order.
The case highlights ongoing tensions between racing industry participants and HISA’s enforcement mechanisms as the new regulatory framework continues to face legal challenges.
