Arizona Downs v. Turf Paradise, Inc.

682 P.2d 443, 140 Ariz. 438, 1984 Ariz. App. LEXIS 533
CourtCourt of Appeals of Arizona
DecidedMarch 13, 1984
Docket1 CA-CIV 6045
StatusPublished
Cited by14 cases

This text of 682 P.2d 443 (Arizona Downs v. Turf Paradise, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona Downs v. Turf Paradise, Inc., 682 P.2d 443, 140 Ariz. 438, 1984 Ariz. App. LEXIS 533 (Ark. Ct. App. 1984).

Opinion

OPINION

HAIRE, Presiding Judge.

This appeal represents an additional chapter in the continuing litigation involving Arizona Downs, Turf Paradise, Inc., and the Arizona Racing Commission, relating primarily to questions concerning the allocation of racing dates and the interpretation of Arizona statutes granting racing date preferences to prior permittees. Also involved in practically all of the litigation between these parties are questions concerning the validity and binding effect of a 1956 agreement between Arizona Downs and Turf Paradise providing for the lease of the racetrack facilities of Turf Paradise to Arizona Downs, and also containing an agreement for the allocation of available racing dates between Turf Paradise and Arizona Downs. 1

In the proceeding which is the subject of this opinion, Turf Paradise has appealed and Arizona Downs has cross-appealed from a judgment entered by the Maricopa County Superior Court. Once again, the questions raised focus upon a Racing Commission decision allocating racing dates and the effect, if any, to be given to the 1956 agreement between Arizona Downs and Turf Paradise. Specifically, the case involves a decision issued by the Arizona Racing Commission in August 1980, concerning the allocation of racing dates, the maintenance of Turf Paradise racetrack facilities, and the hiring of racing officials for the 1980-1981 racing season.

The Commission’s 1980 decision allocated the available racing dates for the 1980-81 racing season among three applicants. The decision allocated 72 days to Turf Paradise, 51 days to Arizona Downs, and 30 days to Arizona Horsemen’s Foundation, with all three racing meets to be conducted at Turf Paradise’s racing facilities. Additionally, the Commission’s decision required that each permittee pay a proportionate share of the annual maintenance costs for the Turf Paradise racetrack facilities at which all three permittees would be conducting their racing meetings, i.e., Turf Paradise would pay 72/i53rds, Arizona Downs 61/i53rds and Arizona Horsemen’s Foundation 30/i53 rds of the annual maintenance expenses. The Commission’s decision also required that all permittees use their best efforts to agree upon the hiring of the same racing officials for all three racing meets in order to achieve continuity and an orderly transition from one racing meeting to the next. It further provided that if the permittees could not agree on the selection of racing officials, the Commission would resolve the dispute.

Arizona Downs appealed to the Maricopa County Superior Court from the Commission’s decision in accordance with A.R.S. § 5-108.01 and § 12-901 et seq. After re *441 viewing the record made before the Commission, the superior court affirmed the provisions of the Commission’s decision concerning the allocation of racing dates, but reversed the provisions of the decision which required that Arizona Downs pay 51/i53rds of the annual maintenance expenses for the racing facility, and the provision that the Commission would resolve any disputes between the permittees relating to the hiring of qualified racing officials.

Turf Paradise has now appealed to this court from that part of the superior court’s judgment which nullified the Commission’s order requiring the payment of maintenance expenses by Arizona Downs, and also from the trial court’s judgment finding invalid the Commission’s order relating to the resolution of disputes concerning the hiring of racing officials. Arizona Downs has cross-appealed from that part of the superior court's judgment which affirmed the Commission’s allocation of racing dates as between Arizona Downs and Arizona Horsemen’s Foundation. The Commission has not appealed from any portion of the superior court judgment.

THE TURF PARADISE APPEAL

As its first issue, Turf Paradise contends that the Racing Commission may, as a condition to the granting of a racing permit, require a permittee to pay a prorata share of the annual maintenance costs of the facility at which the permittee holds its racing meeting, and that the superior court erred in reversing the provisions of the Commission’s decision which required Arizona Downs to pay such maintenance expenses. Opposing this contention, Arizona Downs urges that the 1956 agreement between it and Turf Paradise established a property right in Arizona Downs to use the Turf Paradise facilities, and that the Commission grossly abused its discretion by refusing to consider the property rights of the parties, and by ignoring the concomitant rights and obligations of the parties under that agreement insofar as concerns the maintenance of the facility and the compensation payable to Turf Paradise pursuant to that agreement. We agree that under the circumstances presented in the record before this court, the Commission abused its discretion on the maintenance issue, and therefore we affirm the provisions of the superior court judgment which reversed that portion of the Commission’s decision which relates to maintenance.

In 1956 Turf Paradise and the predecessor in interest to Arizona Downs entered into an agreement which still remains in effect. By the terms of that agreement, Turf Paradise agreed to lease to Arizona Downs the Turf Paradise racetrack facilities “for such period of time [each year] as shall be allocated to [Arizona Downs] by authority of law for the purpose of conducting such racing meets.” In consideration for the leasing of the facilities and in consideration of other obligations undertaken by Turf Paradise as a party to the 1956 agreement, Arizona Downs agreed to pay a yearly rental based upon a percentage of Arizona Downs “average daily mu-tuel handle” during its racing meet. 2 Under the agreement Arizona Downs also was obligated to keep and maintain the racing plant in good condition and in repair during Arizona Downs’ period of occupancy. Under the terms of a 1961 addendum to the agreement, Arizona Downs was also required to pay a small additional amount annually to Turf Paradise for certain other maintenance expenses. The Commission’s order ignored the rights and obligations of the parties under the 1956 lease agreement concerning maintenance of the facilities. Without regard to the payment by Arizona Downs of rental and the performance of its maintenance responsibilities under the lease, the Commission in its decision ordered the payment by Arizona Downs to Turf Paradise of the pro-rated total annual maintenance expenses as previously indicated. No contention has been raised that Arizona Downs had not fully complied with its maintenance, rental and other obliga *442 tions imposed under the 1956 agreement and the 1961 addendum.

In holding that the Commission erred in ordering Arizona Downs to pay a proportionate share of the annual maintenance expenses of Turf Paradise’s racing facilities based upon the allocation of racing dates, the trial judge concluded as follows:

“8. The Commission is without power and authority to require, as a condition to Downs’ permit, that Downs pay to Turf one-third or any of the cost of the annual upkeep and maintenance of the racetrack. On this issue, the Commission abused its discretion and the condition so imposed is set aside.”

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Cite This Page — Counsel Stack

Bluebook (online)
682 P.2d 443, 140 Ariz. 438, 1984 Ariz. App. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-downs-v-turf-paradise-inc-arizctapp-1984.