HIWU has dropped its pursuit of a $25,000 fine against trainer Philip Serpe in a Clenbuterol positive case from August, according to a letter issued by the agency last week.
Serpe contends this action was strategically taken to undermine his federal court case against the Horseracing Integrity and Safety Authority and the Federal Trade Commission (FTC), which includes claims he was denied his Seventh Amendment right to a jury trial.
Attorneys for the FTC and HISA Authority argued in a joint motion that without a monetary fine, “Plaintiff’s Seventh Amendment claim and removes any risk of cognizable harm with respect to it” is now moot.
“The Court should dispose of Plaintiff’s Seventh Amendment claim, and Plaintiff’s motion for a preliminary injunction relating to that claim,” they wrote.
Serpe’s legal team responded forcefully, characterizing the motion as “part of a concerted effort with HIWU to prejudicially moot Serpe’s claims during the pendency of this case.” They urged the court to reject the defendants’ motion.
In their filing, Serpe’s attorneys noted he is unaware of any other anti-doping and medication control case where HIWU “voluntarily decided” not to pursue a fine. They suggested an “alignment” between HIWU’s enforcement decisions and the defendants’ litigation strategy.
The FTC’s role includes overseeing the HISA Authority and ensuring “transparency and integrity” in its operations.
“HIWU has again made a decision that is obviously intended to moot Serpe’s requests for relief—almost as if Defendants need HIWU not to seek a fine to defeat Serpe’s Seventh Amendment claim and/or remedy the irreparable harm that Serpe is suffering,” the filing stated.
When contacted, HISA spokesperson Mandy Minger declined to comment on the matter.
The case originated on August 10 last year when Fast Kimmie, trained by Serpe for owner WellSpring Stables, won a four-horse, off-the-turf $30,000 claimer at Saratoga. Both A and B samples confirmed the presence of Clenbuterol, a bronchodilator classified as a “banned” substance under HISA regulations, though permitted under specific circumstances.
HIWU formally charged Serpe on October 10. One week later, Serpe filed suit against the FTC and HISA Authority in the United States District Court (Southern District of Florida).
Serpe’s lawsuit claims HISA and its regulations are unconstitutional—an argument central to several lawsuits challenging the federal law. The U.S. Supreme Court is expected to rule on HISA’s constitutionality either later this year or in 2025.
Additionally, Serpe argued that HISA violates his Seventh Amendment rights, partly because anti-doping cases under HISA share legal parallels with fraud cases that require jury trials.
The FTC and HISA Authority attorneys countered in January that Serpe’s Seventh Amendment claim isn’t “ripe”—a legal term indicating it depends on future events that may not occur.
“Plaintiff cannot say whether there will be any subsequent government proceeding to which the Constitution applies. Even if there is, the type of remedy that will be reviewed there—an ‘all but dispositive’ Seventh Amendment consideration,” they wrote, “remains unknown.”
While HIWU initially suspended Serpe provisionally—standard procedure at the time for banned substance cases—the HISA Authority later requested HIWU limit such suspensions. Consequently, Serpe was among trainers who had their provisional suspensions lifted in November, allowing him to resume training.
April has seen increased legal activity in Serpe’s federal lawsuit, including oral arguments on April 10 regarding his motion for preliminary injunction.
The following day, the court ordered supplemental briefs addressing whether the FTC had waived sovereign immunity “as to the recovery of damages for constitutional injuries suffered by persons subject to enforcement actions under the Horseracing Integrity and Safety Act.”
In their joint motion last week, the FTC and HISA Authority attorneys requested the court either vacate the order for supplemental briefs or extend the deadline, arguing that without HIWU seeking a fine, there’s “no longer any need to litigate this issue.”
Serpe’s attorneys responded by asking the court to deny this request, claiming “defendants know they are vulnerable, if not likely to fail, on Serpe’s Seventh Amendment Claim” and “appear to be working with HIWU to do everything they can to avoid the Court’s ruling.”
Serpe’s filing includes several alternative legal requests, including that if the court finds the FTC isn’t entitled to sovereign immunity or that he isn’t suffering irreparable harm, “the Court simply convert his preliminary injunction motion papers into a motion for summary judgment.”
Alternatively, if the court determines Serpe’s Seventh Amendment claim isn’t ripe for summary judgment because arbitration remains unfinished, his attorneys request the court delay ruling until arbitration concludes, after which “the parties can submit the arbitration record and the Court can rule as a matter of law on summary judgment.”
Serpe’s arbitration hearing is reportedly scheduled for June 5-6.
