RULING NUMBER COM GEN 002 /2013

COMMISSION HEARING TORONTO, ONTARIO – SEPTEMBER 16, 2013

NOTICE OF DECISION

IN THE MATTER OF THE RACING COMMISSION ACT, S.O. 2000, c.20;

AND IN THE MATTER OF THE APPEAL OF HIAWATHA HORSE PARK

Hiawatha Horse Park appealed against the Director’s Notice of Order (Supplementary), dated

August 7, 2013.

Date of Hearing: September 16, 2013

ORC Panel Members: Chair Rod Seiling

Commissioner John W. Macdonald

Commissioner Dan Nixon

Representative for Appellant: Self represented

Counsel for the Administration: Angela Holland

The Panel denied the appeal. Furthermore, Hiawatha Horse Park is fined an additional $1,500.00 for filing a frivolous appeal.

A transcript with the Panel’s oral Reasons for Decision is attached to this Notice.

DATED at Toronto this 16^th day of September 2013.

Steven Lehman

Executive Director

ONTARIO RACING COMMISSION

STANDARDBRED HEARING

IN THE MATTER OF THE RACING COMMISSION ACT, 2000, S.O. C.20 AND THE RULES OF STANDARDBRED RACING:

AND IN THE MATTER OF AN APPEAL AND REQUEST FOR HEARING OF HIAWATHA HORSE PARK:

Held Before:

Rod Seiling Chairman

John Macdonald Commissioner

Dan Nixon Commissioner

These are an excerpt of the proceedings in the above mentioned matter held before The Ontario Racing Commission, Re: HIAWATHA HORSE PARK, taken before Toronto Court Reporters, Suite 1410, 65 Queen Street West, Toronto, Ontario, at 10 Carlson Court, Suite 400, Toronto, Ontario, on the 16th day of September, 2013.

Appearances:

Angela Holland,

for the Ontario Racing Commission Administration

Hearing continued ...

MR. CHAIRMAN: All rise. Please be seated. After carefully listening to the testimony and reviewing the evidence and documents filed the panel denies the appeal. Furthermore, Hiawatha Horse Park is fined an additional $1,500.00 for filing a frivolous appeal in order to comply with the Commission's supplementary notice dated August 7th, 2013, including providing the purse account documentation by the 16th day of the following month. Standardbred Rule 7.16.02 requires a track to pay into its purse account the funds within specified time frames. Mr. Henderson admits there was a substantial under payment to the purse account at Hiawatha and he bears the responsibility. Therefore, he was in violation of Standardbred Rule 7.16.02. Mr. Henderson submitted the under payment was about $420,000.00. Mr. Dupuis, purse account manager from the Ontario Racing Commission, submitted the amount is about $677,000.00. It is reasonable to conclude, on a balance of probabilities (FH versus McDougall (2008)(3) SCR 41) that the amount of the under payment is $677,000.00. In this regard the panel recalled Mr. Dupuis relative to the amount of the under payment. Mr. Henderson was provided a second opportunity to question the purse account manager as to the actual amount of the under payment and he failed to provide any credible evidence to support his position. Horse people are partners with tracks. That partnership is based on contracts signed between the two parties. It is a serious breach of trust and a violation of Standardbred Rule 7.16.02 that this panel and this Commission does not take lightly. Under the Racing Commission Act of 2000 the Commission has the responsibility to act in the best interests of racing. Under that mandate it must ensure that one party does not violate the rights of the other by not remitting funds that are legally due to it under Standardbred Rule 7.16.02. Mr. Henderson's reason for appeal was to recoup interest money incorrectly charged, according to him. In actual fact if he has been assessed interest incorrectly the funds will automatically be reconciled as part of the on going purse review that occurs at every racetrack. The $5,000.00 fine is fair and reasonable given the seriousness of the rule violation. Purse money is purse money. Penalties serve as a dual purpose. They deal with the perpetrator and serve to act as a deterrent to others. The fact Hiawatha is still not compliant with the supplementary order suggests the track still does not understand the requirements as they relate to purse accounts (a.k.a. horse people's money). The panel agrees to support the request for the $1,500.00 frivolous appeal. This Commission bears a responsibility to the industry to use its resources judicially. The costs incurred in this matter by the ORC are substantial. Mr. Henderson came to the hearing with little preparation, at best and offered no documentation or evidence to support his position. Any questions?

MS. HOLLAND: No, sir.

MR. CHAIRMAN: Thank you.

CERTIFIED CORRECT:____________________________

RAYMOND P. MACDONALD, B.A., CVR

Commissioner of Oaths