Gill v. Gulfstream Park Racing Ass'n

399 F.3d 391, 2005 U.S. App. LEXIS 3748, 2005 WL 518884
CourtCourt of Appeals for the First Circuit
DecidedMarch 7, 2005
Docket04-1944
StatusPublished
Cited by54 cases

This text of 399 F.3d 391 (Gill v. Gulfstream Park Racing Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gill v. Gulfstream Park Racing Ass'n, 399 F.3d 391, 2005 U.S. App. LEXIS 3748, 2005 WL 518884 (1st Cir. 2005).

Opinion

LYNCH, Circuit Judge.

This case raises the question of recognition of an informant’s privilege and the associated public interests which underlie the privilege. The issue comes to us on arguments from a third-party investigative arm of an association of private race tracks, that the district court, under Fed. R. Civ. R. 26, erred in failing to recognize those interests when it ordered disclosure of the identities of informants who told of illegal activities by the plaintiff. We vacate the order and remand.

I.

Michael J. Gill, an owner of thoroughbred race horses, filed a false light defamation action against a Florida race track, Gulfstream Park, and the race track’s president, Scott Savin, in New Hampshire federal court, based on diversity jurisdiction.

The case alleged defamation from statements by the Gulfstream defendants to reporters for Sports Illustrated magazine, which published an article about allegations that Gill had engaged in illegal horse racing practices. The relevant state racing agency, the Florida Division of PariMutuel Wagering (FDPMW), in fact had investigated Gill. Gill claims that the defendants misrepresented the status of the investigation.

Gill learned during discovery about an Investigative Report on his horse racing practices which had been prepared by the appellants, the Thoroughbred Racing Protective Bureau (TRPB) and one of its investigators, Anthony Otero. Neither are parties to the defamation case.

Gill then amended the complaint to assert that TRPB acted as the Gulfstream defendants’ agent in preparing this defamatory Report. Gill did not seek then to add Otero or TRPB as parties. Gill subpoenaed TRPB’s files concerning the investigation. TRPB’s counsel declined to produce certain documents containing the names of the informants on grounds of privilege and confidentiality, but then inadvertently disclosed the documents with the names of these informants to Gill’s counsel. Gill’s then-counsel revealed the informants’ names to his client, filed the documents containing the names under seal with the district court, and withdrew from the case.

Gill’s successor counsel filed a motion to unseal and to use the inadvertently disclosed names, which was opposed by TRPB. TRPB sought a protective order, arguing that the names of the tipsters were protected from disclosure, under Fed.R.Civ.P. 26(c), by the informant’s priv *394 ilege under state law, and by other interests. The district court granted the motion to unseal and denied TRPB’s request for a protective order. It did not reach the question of waiver of privilege through inadvertent disclosure.

TRPB filed an interlocutory appeal, arguing that the informant’s privilege does attach and in any event the district court erred in not considering, for Rule 26 purposes, the public interest in encouraging-informants to divulge information about horse racing corruption to the industry watch dog group and the corresponding interests of the informants in confidentiality and privacy. 1

II.

TRPB, one of the third-party appellants in this case, describes itself as “the self-regulatory arm of the Thoroughbred Racing Associations of North America, Inc. (‘TRA’), a non-profit trade association of the major thoroughbred race tracks in the United States and Canada.” The stated mission of TRPB is to “assure the security of- thoroughbred racing participants and spectators and the integrity of thoroughbred races by working in close conjunction with civil and criminal enforcement authorities at every level of government, federal, state and local, to investigate allegations of wrongdoing at TRA member tracks, including criminal law violations.”

In January 2003, TRPB began to investigate plaintiff Michael J. Gill, an owner of thoroughbred race horses, and Gill’s horse trainer and veterinarians. At that time, Gill’s horses were winning a high percentage of races at Gulfstream Park in Hallan-dale Beach, Florida, owned by Gulfstream Park Racing Association, Inc. In early January, an unnamed, confidential tipster had alerted Anthony Otero, an investigator with .TRPB, of “suspicious” activity at the barn of Gill’s trainer, specifically that “stable employees were being posted at the barn as lookouts during pre-race medication time.” Otero also spoke with other unnamed, confidential tipsters (Gill claims that there were in total three separate tipsters), who told of other suspicious activities involving Gill’s horses at Gulf-stream and its satellite training facility. For example, the tipsters told TRPB that Gill’s horses were being shipped to a nearby trotting center where they received “Extracorporeal Shock Wave Therapy” (ESWT) “four days out” from a race; Gulfstream’s 2003 rules made a horse receiving ESWT treatment ineligible to start in a race until more than seven days post-treatment have elapsed. The tipsters also said that one of Gill’s veterinarians was “blocking the joints” of Gill’s horses on race day with a pain killer. 2 Further, the tipsters told Otero that on race days, Gill’s trainer administered to the horses a “hormone that stimulates and regulates red blood cell production thus infusing a sys *395 tem with a richer supply of oxygen.” After receiving this information, Gulfstream’s track veterinarian decided that if any of Gill’s horses had to be euthanized following injury, fluids should be drawn from the joints for testing and a necropsy performed.

On February 3, 2003, one of Gill’s horses, “Casual Conflict,” injured its right front leg during a race and had to be euthanized. The injured part of the horse’s right front leg was amputated and was oddly missing by the time Gulf-stream’s track veterinarian arrived to draw fluids from it for testing. The missing right front leg was later retrieved from one of Gill’s veterinarians, who admitted, to having removed it without permission.

On February 5, the FDPMW chief investigator . contacted Otero and other TRPB personnel to advise them that the agency was taking over the investigation into the horse’s death. The FDPMW taped interviews of Gill, his trainer, and veterinarians. Otero was present during most of these interviews. At least three conflicting explanations were given by the interviewees for why the leg of the horse was removed. FDPMW investigators then took some leg tissue from the horse for testing. The testers could not draw joint fluid for testing, but the other tests revealed no banned substances.

It was not uncommon for TRPB and the FDPMW to cooperate in investigations, and Otero and the FDPMW’s investigators stayed in contact during the subsequent investigations. TRPB continued to investigate, presumably in cooperation with the FDPMW, and to watch for suspicious activity as to Gill’s other horses. TRPB also conducted searches of the veterinarians’ vehicles, which FDPMW investigators witnessed. One of Gill’s veterinarians was then excluded from Gulfstream for failing to comply with DEA regulations, and another veterinarian was not allowed to practice medicine there for failing to sign the Gulfstream waiver of liability agreement.

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399 F.3d 391, 2005 U.S. App. LEXIS 3748, 2005 WL 518884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gill-v-gulfstream-park-racing-assn-ca1-2005.