Bally's Louisiana, Inc. v. GAMING CONTROL BD.

807 So. 2d 257, 1999 La.App. 1 Cir. 2617, 2001 La. App. LEXIS 126, 2001 WL 80182
CourtLouisiana Court of Appeal
DecidedJanuary 31, 2001
Docket1999 CA 2617
StatusPublished
Cited by11 cases

This text of 807 So. 2d 257 (Bally's Louisiana, Inc. v. GAMING CONTROL BD.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bally's Louisiana, Inc. v. GAMING CONTROL BD., 807 So. 2d 257, 1999 La.App. 1 Cir. 2617, 2001 La. App. LEXIS 126, 2001 WL 80182 (La. Ct. App. 2001).

Opinion

807 So.2d 257 (2001)

BALLY'S LOUISIANA, INC.
v.
The LOUISIANA GAMING CONTROL BOARD.

No. 1999 CA 2617.

Court of Appeal of Louisiana, First Circuit.

January 31, 2001.
Writ Denied January 11, 2002.

*258 Daniel Lund, Stephen P. Schott, Karina P. Gentinetta, New Orleans, for Plaintiff-Appellee Bally's Louisiana, Inc.

John J. Cummings, III, Thomas W. Tucker, Christopher C. Pickren, New Orleans, for Intervenor-Appellant Metro Riverboat Associates, Inc.

L. Rand Dennis, Baton Rouge, for Defendant-Appellee the Louisiana Gaming Control Board.

Before: GONZALES and *259 PETTIGREW, JJ., and EDWARDS,[1] J. Pro Tem.

PETTIGREW, J.

In this case, intervenor, Metro Riverboat Associates, Inc. ("Metro"), appeals from an unfavorable judgment of the trial court whereby a permanent injunction was issued enjoining the Louisiana Gaming Control Board ("Board") from taking any action to enforce certain escrow orders entered by the Board relative to the gross gaming revenues of the Belle of Orleans, L.L.C. ("Belle"). For the reasons that follow, we reverse in part and remand for further proceedings consistent with this opinion.

FACTS AND PROCEDURAL HISTORY

Belle is a Louisiana limited liability company that is the owner and licensee of Bally's Casino Lakeshore Resort ("Casino"). Belle consists of two partners, Metro, which holds a 50.1 percent interest in Belle, and Bally's Louisiana, Inc. ("Bally's"), which holds a 49.9 percent interest in Belle. The management and operation of the Casino is governed by a Management Agreement, dated August 18, 1993, between Belle, as the owner and licensee of the Casino, and Bally's Casino Holdings, Inc., as the intended manager of the Casino at the time.

The Management Agreement was subsequently amended on June 22, 1994, resulting in an assignment by Bally's Casino Holdings, Inc. of all of its rights under the Management Agreement to Bally's Intermediate Casino Holdings, Inc. Thereafter, on or about January 17, 1995, Bally's Intermediate Casino Holdings, Inc. assigned all of its rights under the Management Agreement to Bally's. The Casino opened for business in July of 1995. From the date the Casino opened for business, and continuing to the present, Bally's has been the manager of the Casino pursuant to the Management Agreement, as amended and assigned. Pursuant to the Management Agreement, Bally's has the exclusive control of and responsibility for the operation of the Casino, for which Belle pays Bally's a monthly management fee.

According to the record, the Board met on March 16, 1999, and ordered that Belle's gross gaming revenues be placed into escrow and subject to disbursement only upon approval by the Board and/or by the Department of Public Safety and Corrections, Office of the State Police. The Board again met on June 15, 1999, at which time it ordered Belle to withhold payment of the monthly management fee to Bally's until further action or order by the Board.[2]

Bally's sought judicial review of the Board's actions alleging that its right to due process had been violated. In its original petition filed on March 26, 1999, Bally's asserted as follows:

Plaintiff is adversely affected and aggrieved by the action of the Board, and substantial rights of plaintiff have been prejudiced by the Board's action. As Casino Manager and part owner of the Belle LLC Casino, plaintiff has a constitutionally-protected *260 contractual and legal right to control the handling and disbursement of gaming revenues from the Casino and to receipt of its management fee and other expense reimbursement, which rights may not be abridged without due process of law.

Subsequently, on June 24, 1999, Bally's filed a first amending petition asserting that the June 15, 1999 order of the Board was "contrary to law, and violated constitutional, statutory, and regulatory provisions" and should be reversed and rescinded.

Thereafter, on July 15, 1999, Bally's filed a motion for a temporary restraining order and a preliminary injunction under the same docket number assigned to its petition for judicial review. Following a hearing on July 16, 1999, the trial court granted a temporary restraining order. According to the minutes from the hearing, the Board was "temporarily restrained, enjoined, and prohibited" from enforcing its June 15, 1999 order. The court also set a date for the hearing on the preliminary injunction, adding that proof at this hearing "may be adduced by verified pleadings, by supporting affidavits, or by proof as in ordinary cases, or any one or all of such methods at the election of either party hereto."

Although counsel for Metro was present in court for the July 16, 1999 hearing on the temporary restraining order, the court prevented him from participating in the hearing, as Metro was not yet a party to the suit. However, according to the minutes from the July 16, 1999 hearing, Metro was allowed to later intervene in the suit. Subsequently, Metro filed a motion requesting that the hearing on the preliminary injunction be "upon proof as in ordinary cases." This motion by Metro was denied by the court in an order signed July 22, 1999, containing the following handwritten notation by the court: "Upon reflection and in the interest of justice, [the Court's previous order of July 16, 1999,] is found to be too broad. The Court therefore orders that evidence adduced at the hearing on preliminary injunction shall be by verified petition and supporting affidavits only."[3]

On July 29, 1999, Bally's filed a second amending petition alleging an unconstitutional taking of its property and property rights by state action without due process of law. Bally's requested a preliminary injunction and the perpetuation of said preliminary injunction through the issuance of a permanent injunction to prevent this unconstitutional taking.

Pursuant to a previous fixing by the court, the hearing on the preliminary injunction was conducted on August 13, 1999. At this hearing, documentary evidence was introduced, and the matter was argued by counsel for all parties. The Board urged a peremptory exception raising the objection of nonjoinder of an indispensable party, an exception that it originally filed on July 23, 1999. Through this exception, the Board argued that Belle was a "party whose presence in this litigation [was] required for a just adjudication of this matter." After hearing the argument of the parties, the trial court took the matter under advisement.

*261 On August 19, 1999, the parties were again before the court for a ruling on the preliminary injunction. In oral reasons given from the bench, the court noted as follows:

The Court believes that the Gaming Control Board has broad authority pursuant to Revised Statute 27:15 to take actions necessary and proper to promote the control of gaming in Louisiana. This Court, though, in reading the transcripts is concerned and does not believe that the Board in issuing the orders of March 16th, 1999, and June 15th, 1999, complied with the procedural requirements necessary to issue those orders.

The court continued, finding that in the interest of "preserving the status quo," it would grant the preliminary injunction.

It was after this ruling that counsel for the Board interjected that the Board had "nothing further to add to this proceeding, and ... [was] in favor of converting this preliminary injunction to a final injunction." With regard to this issue, counsel for Bally's added:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alecia Richard Versus Kyle Bourgeois, Sr.
Louisiana Court of Appeal, 2020
Baton Rouge v. DEPART. OF SOCIAL SERVICES
970 So. 2d 985 (Louisiana Court of Appeal, 2007)
Bank One, Nat. Ass'n v. Velten
917 So. 2d 454 (Louisiana Court of Appeal, 2005)
McCurley v. Burton
879 So. 2d 186 (Louisiana Court of Appeal, 2004)
M.P.G. Construction, Inc. v. Department of Transportation & Development
878 So. 2d 624 (Louisiana Court of Appeal, 2004)
Ray Anding Const. v. Monroe City School Bd.
867 So. 2d 1005 (Louisiana Court of Appeal, 2004)
Liberty Bank and Trust Co. v. Dapremont
844 So. 2d 877 (Louisiana Court of Appeal, 2003)
Metro Riverboat Associates, Inc. v. Louisiana Gaming Control Board
798 So. 2d 143 (Louisiana Court of Appeal, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
807 So. 2d 257, 1999 La.App. 1 Cir. 2617, 2001 La. App. LEXIS 126, 2001 WL 80182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ballys-louisiana-inc-v-gaming-control-bd-lactapp-2001.