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The Standardbred Canada results are in, and the breeders have won a class action lawsuit against the Province of Ontario. The ruling was announced on June 29, 2020, by Superior Court Justice, Michael Emery. The plaintiffs, a group of standardbred horse racing breeders, finally reached a victorious ruling after six long years. The standardbred breeders class action lawsuit was launched after the unexpected termination of Slots At Racetracks Program (SARP).
In March 2012, SARP was cancelled by the Ontario government and the standardbred horse breeders experienced considerable losses. The decision to terminate a 14-year-old revenue-share agreement was confirmed, which resulted in the breeders losing out on revenue from slot machines.
The breeders claimed the hasty removal of SARP ruined their businesses because their income relied on the five year breeding period for standardbred race horses.
The lawsuit was initiated in a civil case against the government in March 2014. In July 2019, the government established the Crown Liability and Proceedings Act, which cancelled out some claims, but it did not impact a sole claim against the province, so the ruling was still settled in favour of the standardbred horse breeders. It was found that the province was still bound by contractual agreements with the standardbred breeders and the contracts were only allowed to be eliminated given fair notice. Effectively, the Court found that the contract between the breeders and the government of Ontario was an enforceable contract, therefore requiring Ontario to give them “reasonable notice of an intention to terminate the relationship.”
Standardbred horse racing was in the limelight of legalized gambling in Ontario for years when gambling was in large part, still illegal. However, horse racing has seen a downturn in popularity since 1996 when other gambling activities became legalized. Due to the downturn, the government initiated a policy to revitalize the horseracing industry. One of the resources designed to drive economic growth and stimulate the struggling horseracing industry was to put slots at racetracks. The slots were brought in to draw more customers to racetracks and to produce money that could be divided among shareholders. The Cabinet brought in SARP in 1998.
On June 25, 1998, a Letter of Intent was signed by Ontario and the standardbred horse racing breeders. The LOI was a guideline for the conditions of SARP and details about how it would work. The Ontario Lottery and Gaming Corporation (who would later become the co-defendants in the standardbred breeders class action lawsuit) also entered the agreement.
SARP operated at racetracks and the stakeholders shared the net profits, according to the standardbred breeders class action lawsuit. On Feb. 8, 2012, The Ontario Lottery and Gaming Corporation was told by the Cabinet to warn all involved that the SARP agreement would end. March 31, 2013, was the final day of the program.
The standardbred horse racing breeders did not challenge the right to end SARP through the proper agreements as stated in their contract, however, the breeders had a problem with the short notice of cancelling the program. The standardbred race horse breeders had a rolling investment for breeding horses. Their investment relied on the long-term running of SARP, and they suffered losses as a result of the early cancellation of it.
The standardbred horse breeders initiated a class action lawsuit claiming breach of contract, negligence, and negligent misrepresentation due to the actions of the province and The Ontario Lottery and Gaming Corporation. Both the province and The Ontario Lottery and Gaming Corporation sought to dismiss the case entirely, but the breeders fought for a ruling of finding the defendants liable for at least one of the actions and for a judgment of damages.
The breeders won the standardbred breeders class action lawsuit against Ontario and The Ontario Lottery and Gaming Corporation on the grounds of breach of contract. The other actions of negligence and negligent misrepresentation were dismissed because the breeders were blocked from proceeding with the claims under the Crown Liability and Proceedings Act, 2019.
After the recent court ruling, the Ontario Harness Horse Association (OHHA) is reportedly urging the province to attend mediation with the standardbred race horse breeders to work out the harm that was caused by the removal of SARP. OHHA believes mediation would be significant to smooth things over between the breeders and the province.
The association emphasizes that the standardbred breeding and racing business is a crucial part of the agricultural industry and helps drive the Ontario economy as a whole. They say the breeders are an integral part of supporting rural communities, and they have suffered long enough.
How do you feel about the standardbred breeders class action lawsuit ruling? Do you think the breeders received the justice they fought for? Tell us your thoughts in the comment section below!
The plaintiffs are represented by J. Lisus, I. Matthews, V. Milat, and P. Underwood.
The Standardbred Breeders Class Action Lawsuit is Seelster Farms Inc., et al. v. Her Majesty the Queen in Right of Ontario and Ontario Lottery and Gaming Corporation, Case No. 272/14, in the Superior Court of Justice, Ontario, Canada.
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