Allendale Leasing, Inc. v. Stone

614 F. Supp. 1440, 1985 U.S. Dist. LEXIS 17165
CourtDistrict Court, D. Rhode Island
DecidedAugust 5, 1985
DocketCiv. A. 83-518P
StatusPublished
Cited by27 cases

This text of 614 F. Supp. 1440 (Allendale Leasing, Inc. v. Stone) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allendale Leasing, Inc. v. Stone, 614 F. Supp. 1440, 1985 U.S. Dist. LEXIS 17165 (D.R.I. 1985).

Opinion

OPINION AND ORDER

PETTINE, Senior District Judge.

This case is before the court on cross motions for summary judgment. The plaintiffs instituted their suit pursuant to 28 U.S.C. § 1331 and § 1343 and 42 U.S.C. § 1983, alleging that Rhode Island General Laws § 11-19-30 et seq. and certain implementing regulations violate rights secured to them by the First and Fourteenth Amendments to the United States Constitution. They also assert several pendent claims grounded in state law. The challenged provisions regulate the licensing and operation of the game Bingo or Beano and vest the state police with the power to promulgate such regulations as may be necessary to implement the statutory objectives. The plaintiffs seek an injunction prohibiting the state from enforcing these regulations, as well as monetary damages, attorney’s fees and costs.

I. Background

A. The Parties

The plaintiffs challenging the Rhode Island Bingo statute represent a varied cross-section of individuals, businesses, and organizations which are somehow involved in and/or benefited by the operation of the game of chance known as Bingo or Beano [hereinafter Bingo]. The plaintiffs are Allendale Leasing, Inc.; Louise LeBlanc; the Northern Athletic Club; the Darlington Braves, Inc.; Reali Bus Service, Inc.; and the New England Academy of TORAH [NEAT],

Allendale Leasing is a corporation which leases Bingo equipment, paraphernalia, and *1443 game facilities and conducts Bingo games for various charitable organizations. Louise LeBlanc is the owner of Allendale Leasing, and has a criminal record consisting of four misdemeanor violations of the Bingo Laws. The Darlington Braves are a charitable organization which sponsors football and cheerleading programs for youths. The Northern Athletic Club is a charity which raises funds for scholarships for North Providence High School students. NEAT is a charitable organization providing residential religious education to Jewish youths. All three organizations fund a portion of their activities through proceeds from Bingo games, and the Northern Athletic Club and the Darlington Braves lease game facilities and equipment from Allendale Leasing. Finally, Reali Bus Service provides Bingo players with transportation to and from the games.

The named defendants in this action are the Attorney General of the state of Rhode Island and Colonel Walter E. Stone, director of the Rhode Island State Police. As head of the police department, Stone is directly responsible under the Bingo statute for licensing, regulating, and supervising the operation of Bingo games and for promulgating the implementing regulations. See R.I.G.L. § 11-19-40 and § 11-19-41.

B. The Rhode Island Statute

The Bingo statute currently under attack by the plaintiffs was enacted by the Rhode Island Legislature in 1984. It supplanted a prior Bingo regulatory statute which was considerably less detailed and restrictive. 1 *1444 The new law fashions a comprehensive scheme for regulating the registration, licensing, and operation of Bingo game activities as well as for the enforcement of pertinent regulatory restrictions.

The statute, which is reproduced in full at Appendix A, establishes numerous requirements a charitable organization must meet in order to be properly registered by the state police to conduct Bingo games. R.I.G.L. § 11-19-31. It further sets forth specific conditions under which an application for registration shall be denied. Id. The statutory restrictions on the actual operation of Bingo games delineate who may participate in the game operation and what compensation they may receive; what percentage of gross game receipts may be applied to expenses; where the games may be conducted; and how frequently they may be held. R.I.G.L. § 11-19-32. The Bingo law also imposes certain limitations on the prizes that may be awarded, 2 and requires all organizations to maintain financial records which are to be available to the state police on demand. Id.

The Rhode Island Bingo law creates a detailed scheme for enforcing the requirements and restrictions listed above and for penalizing any violations. Under R.I.G.L. § 11-19-39 a charitable organization who willfully or knowingly violates a provision of the chapter may be subject to criminal liability. The provision also authorizes the state police to suspend or cancel an organization’s registration to conduct Bingo games if it finds the organization has committed any violations, including making false or misleading statements in its registration application. Any person whose registration has been cancelled or suspended is entitled to a hearing before the department within thirty days of their hearing request. R.I.G.L. § 11 — 19—39(b).

The hallmark of the new Bingo law, however, is the section charging the state police with the implementation of its provisions. Section 11-19-40 instructs the director of the police department to promulgate rules and regulations that may be necessary to carry out the provisions of the chapter. In promulgating those rules, the director is to be guided by certain statutory standards setting forth conduct, conditions and activity deemed undesirable. They are as follows:

(1) Fraud: The practice of any fraud or deception upon a participant in a game of chance;
*1445 (2) Unsafe premises: The conduct of games of chance in, at, or upon premises which may be unsafe due to fire hazard or other such conditions;
(3) Charitable funds: To assure that all the funds raised through bingo and charitable games are maintained and expended for bona fide charitable purposes;
(4) Advertising: That advertising for all games of chance and bingo is conducted in accordance with the rules and regulations.

Since the enactment of the Bingo law, the state police have adopted regulations pursuant to their statutory mandate. Although some regulations are merely reiterations of the statute’s provisions, others impose supplementary requirements and restrictions on charitable organizations, as well as on businesses engaged in the leasing of Bingo equipment and facilities. Rather than attempting to distill the contents of the regulatory compilation here, the pertinent rules will be summarily described below in the context of the plaintiffs’ legal challenges.

C. Federal Constitutional Challenges

The plaintiffs bring this suit pursuant to 42 U.S.C. § 1983

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Bluebook (online)
614 F. Supp. 1440, 1985 U.S. Dist. LEXIS 17165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allendale-leasing-inc-v-stone-rid-1985.