Update From Montreal

Published: March 16, 2009 01:45 pm EDT

Quebec racetrack operator Attractions Hippiques' request for another extension of creditor protection has

been temporarily suspended while Montreal Superior Court Judge Chantal Corriveau decides whether to continue presiding.

Lawyers representing the Quebec horsemen's and breeders' associations were in court today presenting their views on why she should step down.

The judge's husband is an associate of a law firm representing Attractions Hippiques' lenders, whose legal fees in this case are being paid by the racetrack operator. That detail only came to the attention of the horsemen's lawyers last month, and in their opinion creates an "involuntary" appearance of partiality in what has become an increasingly heated proceeding.

Horsemen's lawyer Daniel Des Aulniers told the judge "your credibility is not in doubt in any way," but said the $300,000 paid to her husband's firm by Attractions Hippiques was money that should have gone for purses.

Without the support of its lenders, Attractions Hippiques would not still be functioning, said the horsemen's other lawyer, Jean-Philippe Gervais. Since the horsemen are against granting further extensions, "the people supporting [Attractions Hippiques] become our adversaries."

Attractions Hippiques' lawyer, Neil Stein, said the lenders are "non-affected creditors" so there's no cause for the judge to recuse herself.

"There's no allegation of bias in this proceeding, there is no reasonable apprehension of bias," Stein said. "It cannot be founded on conjecture."

Judge Corriveau said she'd rule on the request before deciding if and when to hear the motion for extension.

Attractions Hippiques has been in creditor protection since June.

(A Trot Insider exclusive by Paul Delean)

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