This case was last updated from U.S. District Courts on 08/02/2022 at 10:06:54 (UTC).

Gulf Coast Racing LLC et al v. Horseracing Integrity and Safety Authority, Inc. et al

Case Summary

On July 29, 2022, Gulf Coast Racing LLC, LRP Group Ltd., Valle De Los Tesoros Ltd., and Global Gaming LSP, LLC (collectively, “Plaintiffs”), represented by Carlos R Soltero, Gregory P. Sapire and Kayla D. Carrick of Soltero Sapire Murrell PLLC, filed a civil rights lawsuit against Horseracing Integrity, Safety Authority, Inc., Lisa Lazarus, Steve Beshear, Adolpho Birch, Leonard S. Coleman, Jr., Ellen McClain, Charles Scheeler, Joseph DeFrancis, Susan Stover and Others (collectively, “Defendants”), seeking declaratory and injunctive relief with nominal and compensatory damages for alleged violations of several structural and overlapping provisions of the Constitution by HISA. This case was filed in the U.S. District Courts for the Northern District of Texas, with Judge Matthew J. Kacsmaryk presiding. 

In the complaint, Plaintiffs alleged “This suit is about power. It is about whether Congress can confer coercive powers upon individuals who have not been properly constituted as government officers. In the Horseracing Integrity and Safety Act of 2020 (“HISA”), 15 U.S.C. §§ 3051, et seq., Congress empowered a group of private individuals—incorporated weeks before the law’s passage under the laws of Delaware as the Horseracing Integrity and Safety authority (the “Authority”)—to exercise governmental power over the horseracing industry. The “Authority” is empowered by law to, among other things, subpoena documents and compel testimony, search businesses and private databases and seize documents, conduct adjudicatory proceedings, and prosecute actions in federal court like other federal prosecutors. No private individuals have such powers.”

Plaintiffs further alleged “And yet the ‘Board’ of the ‘Authority,’ comprising private individuals appointed through a Nominating Committee whose membership is established by the Authority’s own incorporation documents, has not been appointed through the constitutionally required mechanisms for the exercise of executive power.” 

Plaintiffs also alleged “This Court should not allow such a novel and alien structure to stand. HISA violates several structural and overlapping provisions of the Constitution.”

Plaintiffs additionally alleged “Plaintiffs are harmed by the unconstitutional appointment of the Authority because they are subject to a regulatory process that they are forced to finance with fees imposed on them by the Authority. Also, Plaintiffs are harmed because they are subject to new and onerous Authority rules that change and supersede the state racing commission rules on which their businesses have long relied.”

Plaintiffs presented five claims for relief, including claims for Defendant’s alleged violation of Article II, Section 2, Clause 2 of the U.S. Constitution, Violation of Article II, Section 1 of the U.S. Constitution, and Violation of Article I, Section 1 of the U.S. Constitution. 

In the prayer for relief, Plaintiffs requested a judgment seeking declaratory and injunctive relief with respect to HISA together with an award of nominal and compensatory damages including attorneys’ fees and costs.

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    2:22-CV-00146

  • Filing Date:

    07/29/2022

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Civil Right - Other Civil Right

Judge Details

Presiding Judge

Matthew J. Kacsmaryk

 

Party Details

Plaintiffs

Gulf Coast Racing LLC

LRP Group Ltd.

Valle de Los Tesoros Ltd.

Global Gaming LSP LLC

Defendants

Horseracing Integrity and Safety Authority, Inc.

Lisa Lazarus

Steve Beshear

Adolpho Birch

Leonard Coleman

Ellen McClain

Charles Scheeler

Joseph DeFrancis

Susan Stover

Bill Thomason

D.G Van Clief

Jerry Black

Katrina Adams

MD Nancy Cox

Joseph Dunford

Frank Keating

7 More Parties Available

Attorney/Law Firm Details

Plaintiff Attorneys

Gregory Philip Sapire

Attorney at Soltero Sapire Murrell PLLC

7320 North Mopac Expy., Suite 309

Austin, TX 78731-2311

Carlos R Soltero

Attorney at Soltero Sapire Murrell PLLC

7320 N. Mopac, Suite 2100

Austin, TX 78731

Kayla Diane Carrick

Attorney at Soltero Sapire Murrell PLLC

7320 N. Mopac Expy., Suite 309

Austin, TX 78731

 

Court Documents

#1

(#1) COMPLAINT against All Defendants filed by Gulf Coast Racing LLC, Global Gaming LSP LLC, Valle de Los Tesoros Ltd., LRP Group Ltd.. (Filing fee $402; Receipt number 0539-12998642) Clerk to issue summonses for federal and non-federal defendants. In each Notice of Electronic Filing, the judge assignment is indicated, and a link to the # Judges Copy Requirements and # Judge Specific Requirements is provided. The court reminds the filer that any required copy of this and future documents must be delivered to the judge, in the manner prescribed, within three business days of filing. Unless exempted, attorneys who are not admitted to practice in the Northern District of Texas must seek admission promptly. Forms, instructions, and exemption information may be found at www.txnd.uscourts.gov, or by clicking here: # Attorney Information - Bar Membership. If admission requirements are not satisfied within 21 days, the clerk will notify the presiding judge. (Attachments: #1 Cover Sheet Civil Cover Sheet) (Carrick, Kayla) (Attachment 1 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

1 #1

Cover Sheet Civil Cover Sheet

#2

(#2) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Gulf Coast Racing LLC. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 2 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

#3

(#3) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Global Gaming LSP LLC. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 3 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

#4

(#4) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by LRP Group Ltd.. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 4 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

#5

(#5) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Valle de Los Tesoros Ltd.. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 5 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

#6

(#6) MOTION for leave to proceed without local counsel filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. (Carrick, Kayla) (Entered: 07/29/2022)

#7

(#7) MOTION for Preliminary Injunction and Memorandum of Law in Support filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. with Brief/Memorandum in Support. (Carrick, Kayla) Docket text modified on 8/1/2022 (twd). (Entered: 07/29/2022)

#8

(#8) MOTION for Leave to Exceed Page Limits for Plaintiffs' Motion for Preliminary Injunction and Memorandum of Law in Support re #7 MOTION for Injunction (Preliminary) and Memorandum of Law in Support filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. (Carrick, Kayla) (Entered: 07/29/2022)

#9

(#9) New Case Notes: A filing fee has been paid. Pursuant to Misc. Order 6, Plaintiff is provided the Notice of Right to Consent to Proceed Before A U.S. Magistrate Judge (No magistrate judge assigned). Clerk to provide copy to plaintiff if not received electronically. (nht) (Entered: 08/01/2022)

#10

(#10) Summons Issued as to Katrina Adams, Steve Beshear, Adolpho Birch, Jerry Black, Leonard Coleman, Nancy Cox, Joseph DeFrancis, Joseph Dunford, Horseracing Integrity and Safety Authority Inc, Frank Keating, Lisa Lazarus, Ellen McClain, Kenneth Schanzer, Charles Scheeler, Susan Stover, Bill Thomason, D.G Van Clief. (nht) (Entered: 08/01/2022)

#11

(#11) Summons issued as to Alvaro Bedoya, Federal Trade Commission, Lina Khan, Noah Phillips, Rebecca Slaughter, Christine Wilson, U.S. Attorney, and U.S. Attorney General. (nht) (Entered: 08/01/2022)

 

Docket Entries

  • 08/01/2022
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  • Docket(#11) Summons issued as to Alvaro Bedoya, Federal Trade Commission, Lina Khan, Noah Phillips, Rebecca Slaughter, Christine Wilson, U.S. Attorney, and U.S. Attorney General. (nht) (Entered: 08/01/2022)

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  • 08/01/2022
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  • Docket(#10) Summons Issued as to Katrina Adams, Steve Beshear, Adolpho Birch, Jerry Black, Leonard Coleman, Nancy Cox, Joseph DeFrancis, Joseph Dunford, Horseracing Integrity and Safety Authority Inc, Frank Keating, Lisa Lazarus, Ellen McClain, Kenneth Schanzer, Charles Scheeler, Susan Stover, Bill Thomason, D.G Van Clief. (nht) (Entered: 08/01/2022)

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  • 08/01/2022
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  • Docket(#9) New Case Notes: A filing fee has been paid. Pursuant to Misc. Order 6, Plaintiff is provided the Notice of Right to Consent to Proceed Before A U.S. Magistrate Judge (No magistrate judge assigned). Clerk to provide copy to plaintiff if not received electronically. (nht) (Entered: 08/01/2022)

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  • 07/29/2022
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  • Docket(#8) MOTION for Leave to Exceed Page Limits for Plaintiffs' Motion for Preliminary Injunction and Memorandum of Law in Support re #7 MOTION for Injunction (Preliminary) and Memorandum of Law in Support filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. (Carrick, Kayla) (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#7) MOTION for Preliminary Injunction and Memorandum of Law in Support filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. with Brief/Memorandum in Support. (Carrick, Kayla) Docket text modified on 8/1/2022 (twd). (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#6) MOTION for leave to proceed without local counsel filed by Global Gaming LSP LLC, Gulf Coast Racing LLC, LRP Group Ltd., Valle de Los Tesoros Ltd. (Carrick, Kayla) (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#5) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Valle de Los Tesoros Ltd.. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 5 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#4) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by LRP Group Ltd.. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 4 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#3) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Global Gaming LSP LLC. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 3 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#2) CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Gulf Coast Racing LLC. (Clerk QC note: Affiliate entry indicated). (Carrick, Kayla) (Main Document 2 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

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  • 07/29/2022
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  • Docket(#1) COMPLAINT against All Defendants filed by Gulf Coast Racing LLC, Global Gaming LSP LLC, Valle de Los Tesoros Ltd., LRP Group Ltd.. (Filing fee $402; Receipt number 0539-12998642) Clerk to issue summonses for federal and non-federal defendants. In each Notice of Electronic Filing, the judge assignment is indicated, and a link to the # Judges Copy Requirements and # Judge Specific Requirements is provided. The court reminds the filer that any required copy of this and future documents must be delivered to the judge, in the manner prescribed, within three business days of filing. Unless exempted, attorneys who are not admitted to practice in the Northern District of Texas must seek admission promptly. Forms, instructions, and exemption information may be found at www.txnd.uscourts.gov, or by clicking here: # Attorney Information - Bar Membership. If admission requirements are not satisfied within 21 days, the clerk will notify the presiding judge. (Attachments: #1 Cover Sheet Civil Cover Sheet) (Carrick, Kayla) (Attachment 1 replaced with flattened image on 8/1/2022) (nht). (Entered: 07/29/2022)

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