The Federal Court has upheld the action of the applicant, “Ultra Thoroughbred Racing Pty Ltd”, to prevent Racing Victoria Limited from paying money to the Commissioner under a garnishee order against prize money of some id=”mce_marker”m won by a horse in the Cox Plate and the Caulfield Guineas.
The Commissioner issued the garnishee notice to Racing Victoria Limited in the belief that it owed the prize money to the horse’s apparent owner, a Mr B, who in turn was indebted to the Commissioner for some id=”mce_marker”1m. However, the Court found that Mr B was not the owner of the horse, but rather under the relevant rules that prevented race horses being registered in the name of a company, Mr B acted as the “nominee” individual owner of the horse for this purpose.
In arriving at its conclusion, the Court also noted that the contractual arrangement between Mr B and the applicant was one where the applicant was entitled to any prize monies from the horse. Further, it found that in terms of the relevant racing rules, the applicant was entitled to any prize money won by the horse. Finally, the Court found there was no arrangement in the nature of an assignment of any prize monies to the applicant that indicated Mr B himself was entitled to the prize moneys.
(Ultra Thoroughbred Racing Pty Ltd v FCT  FCA 1300, Federal Court, Pagone J, 3 December 2013.)
[LTN 236, 5/12/13]