Thursday, 16 April 2014 saw a unanimous judgement issued by the Federal Court of Australia denying Bruce McHugh’s appeal seeking to overturn the country’s ban on artificial insemination of Thoroughbreds. The ruling upholds the rules of the Australian Stud Book with regards to breeding Thoroughbreds and denies McHugh’s contention that banning artificial insemination restricts his right to free trade.
Bruce McHugh, a former bookmaker and racing official, challenged a time-honoured tradition to limit artificial insemination because of the dangers of “incorrect paternity” in the racing industry. He launched a lawsuit in 2011, arguing that the restriction of Thoroughbred breeding to “live cover” practices was anti-competitive and a breach of Australia’s Trade Practices Act. In December 2012, Justice Alan Robertson ruled against the legalization of artificial insemination, leading McHugh to appeal.
The case has been followed closely by international breeders, as many leading stallions from the U.S. and Europe regularly shuttle to Australia for the Southern Hemisphere breeding season. Artificial insemination is commonly used in Quarter Horse and Standardbred breeding but is not allowed for registered Thoroughbreds on a global basis according to the bylaws of the International Federation of Horseracing Authorities.
But on Thursday, McHugh lost his attempt to overturn the worldwide ban of thoroughbreds produced by artificial insemination. In a 375-page decision handed down late yesterday by Federal Court Justice Alan Robertson, McHugh’s bid failed on all grounds. He is also lumbered with court costs said to be well in excess of $2 million.
The decision comes a year after the court heard evidence from 30 witnesses over a six-week hearing. The case is a landmark one because if McHugh had won Australia would have been the only country in the world to allow artificial insemination of thoroughbred racehorses. As a result, the ASB and Australian Rules of Racing allowing only naturally conceived horses to be bred and raced as Thoroughbreds, remain unchanged.
Australian Racing Board Chairman John Messara has welcomed the Court’s decision. “A great deal of industry time and financial resources have been spent over the past 5 years in defending this matter. The issue of artificial insemination is settled once and for all. We have said from the outset that our sport was not anti-competitive or a restraint of trade as proponents of AI are perfectly free to establish their own industry. Fortunately the Federal Court agreed with us.”
The ARB’s Michael Duffy added “The long running case has created an element of uncertainty in the industry which will lift following this decision.”
Australian Stud Book keeper Michael Ford described the Federal Court’s ruling as “the right one”.
“This is the right decision and we are pleased that the effect of the courts decision is to protect the integrity of the Stud Book and thoroughbred breeding in Australia. Because of the global market for breeding and racing of thoroughbreds, and the rules on artificial breeding in other jurisdictions, the introduction of artificial insemination into Australian thoroughbred breeding would have had serious consequences for our industry. This is a comprehensive victory for the hundreds of thousands of Australians who derive a livelihood from the thoroughbred racing industry, which will now remain a significant driver of the Australian economy.”
Thoroughbred Breeding Australia president Trevor Lobb hailed the decision as “wonderful”.