Court Rules Racing NSW Exceeded Powers in ATC Dispute

[Wandering Eyes]

A ruling from the Supreme Court of New South Wales has found that Racing NSW acted outside its statutory powers in attempting to place the Australian Turf Club under administration.

Justice François Kunc declared the proposed appointment of an administrator “invalid and of no effect,” concluding the regulator's decision was not authorised under the Thoroughbred Racing Act 1996. The court also ordered Racing NSW to pay the ATC's legal costs.

The case, heard across three days in February, examined whether Racing NSW had validly exercised its powers under the Act to install an administrator to run the club. Justice Kunc relied on two principal grounds in dismissing the appointment.

First, he ruled that Section 11 of the Act, which requires Racing NSW to “act in the public interest and in the interests of the horse racing industry as a whole in New South Wales”, is not separate from or additional to the function set out in Section 13(1).

Section 13(1) specifies that Racing NSW's function is to “control, supervise and regulate in New South Wales the racing of galloping horses as referred to in the Australian Rules of Racing.” Justice Kunc found that the regulator's concerns about the club's financial position and corporate governance fell outside that function.

As a result, the Act did not authorise the appointment of an administrator by Racing NSW, rendering the decision invalid.

Second, the Court found that even if the Act had authorised the appointment, the decision would still have been invalid because it relied on a material misreading of accounting information provided by the ATC, amounting to a jurisdictional error.

Following the ruling, ATC chairman Tim Hale said the decision vindicated the club's position and called for improved cooperation between the regulator and race clubs.

“It is not in the interests of racing for Racing NSW and race clubs to be in conflict. We should be working together,” Hale said in a statement to members.

Justice Kunc noted the dispute may not end the tensions between the two organisations but emphasised the broader significance of the case for racing governance in the state.

“Horse racing is a very substantial part of the NSW economy,” he said. “This case has highlighted that Racing NSW's power to appoint an administrator is a drastic one which can have a very real impact on hundreds, if not thousands, of people.”

The ruling comes amid continuing debate over the balance of power between Racing NSW and race clubs, a central issue in the ongoing review of the state's racing legislation.

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