A matter of catering – ATC and Racing NSW pause dispute over theft allegations

A dispute over catering costs and investigations into possible fraud and theft has brought Racing NSW and the Australian Turf Club back before the NSW Supreme Court, just a week before a crucial hearing on whether the club should be placed into administration.

The latest legal spot fire in the ongoing stoush between the regulator and the club emerged as the ATC sought a legal injunction against Racing NSW taking a formal direction against them under the Thoroughbred Racing Act.

A letter issued by Racing NSW in the past week regarding the ATC’s handling of its catering business and an internal investigation involving suspicions of theft demanded that the ATC divulge details around its broader hospitality business.

Racing NSW had made a request for information based upon section 29B of the Thoroughbred Racing Act, which allows it to give direction in writing to a registered race club to provide specified documents or furnish specified information to Racing NSW.  

Under the Act, failure to comply could result in civil penalties or the club’s deregistration.

The Australian Turf Club’s injunction application, heard before Justice Kunc, contended that the Act only applied to matters of racing, not to the club’s catering or hospitality functions.

Racing NSW’s legal representative, Michael Henry, said that the matter extended beyond just the catering aspect of the ATC business.

“Where we are, is there’s an investigation into serious fraudulent activity that could not seriously be described or compartmentalised as confined to catering and what we want to do is understand the extent and breadth of it and the reasons behind it and who’s done what,” he said during the hearing.

Shortly before Thursday’s hearing, Racing NSW’s legal counsel gave an undertaking that it would not exercise its power for a formal direction before the other Supreme Court case next week.

However, the ATC’s legal position was to seek an undertaking that such a direction would never be made, regardless of the outcome of the hearing into the appointment of an administrator.

After an hour-long hearing of submissions, Justice Kunc made what he described as a “Solomonic” judgment, accepting the Racing NSW undertaking and order that this aspect of the dispute be heard before he makes determination of any other issue in the proceedings.

In court, the ATC’s legal counsel, Scott Robertson SC, said the Racing NSW undertaking was “a complete U-turn” from the correspondence he and the ATC had received on the day before the court hearing.

The ATC has confirmed to other media outlets that it has been investigating potential misconduct.

The parties return before Justice Kunc next Thursday and Friday in a case that will determine Racing NSW’s right to place the ATC into administration.