Bobinchuck v. Levitch

380 S.W.2d 233, 1964 Ky. LEXIS 292
CourtCourt of Appeals of Kentucky
DecidedJune 19, 1964
StatusPublished
Cited by10 cases

This text of 380 S.W.2d 233 (Bobinchuck v. Levitch) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bobinchuck v. Levitch, 380 S.W.2d 233, 1964 Ky. LEXIS 292 (Ky. Ct. App. 1964).

Opinion

W. R. KNUCKLES, Special Commissioner.

On November 9, 1960, Clarence R. Mitchell, trainer and agent of the appellee herein, entered appellee’s horse, “Royal Spy,” in the fourth race, a claiming race, at Churchill Downs. On that day the appellants, William Bobinchuck, Thomas Bobin-chuck- and Mary Bobinchuck, in the manner prescribed by the Kentucky State Racing Commission, submitted through their trainer and agent, Ward Stucker, a claim to the Racing Secretary of Churchill Downs and deposited therewith $4,250, plus $127.50 Kentucky sales tax, for “Royal Spy.” The claim was allowed by the Racing Secretary.

Two pertinent provisions of the Rules of the Racing Commission are:

“108. Every person who subscribes to a sweepstakes, enters a horse or in any way participates in any race or racing under these rules, thereby obligates himself to accept these rules upon all questions relating thereto.”
“221. Claims are irrevocable. Title to a claimed horse shall be vested in the successful claimant from the time said horse leaves the paddock for the starting post, and said successful claimant shall then become the owner of the horse whether he be alive or dead, sound or unsound, or injured before, during the race, or after it. A claimed [235]*235horse shall run in the interest and for the account of the owner from whom claimed.”

Some months before the race appellee had caused “Royal Spy” to be placed in the care of a veterinarian, and a high neu-rotomy had been performed on the horse, severing certain nerves in the upper third of the metacarpus of the right foreleg.

“Royal Spy” ran last in the race, and when he was delivered to appellants’ trainer in the paddock, it was ascertained that neurotomies had been performed on him. Consequently, appellants refused to accept him. They filed a complaint with the Stewards of Churchill Downs November 10, 1960. On November 18, 1960, the Stewards entered orders (1) suspending appellee’s trainer, Clarence R. Mitchell, (2) refusing entry of “Royal Spy” in any Kentucky race, and (3) directing appellee to return the claiming price to appellants and'repossess the horse.

Pursuant to KRS Chapter 230 and § 60 of the Kentucky Racing Commission’s rules of racing appellee promptly filed a written protest to the foregoing ruling; and by a letter dated December 3, 1960, the assistant secretary of the Racing Commission notified appellants “that there will be a Commission meeting on Monday, December 19, 1960. The meeting will convene at 11:00 A. M. (E. S. T.), in the Commission office, 1630 North Broadway, Lexington, Kentucky. Placed on the agenda for the above meeting is the Royal Spy case.”

On December 29, 1960, the Racing Commission reversed the ruling of the Stewards except for the provision barring “Royal Spy” from further racing in Kentucky. Appellants received copies of this order on January 3, 1961, and did not take an appeal from it.

On May 17, 1961, appellants brought this suit in the Jefferson Circuit Court alleging, in substance, fraud annd breach of warranty, and seeking appropriate relief. A motion to dismiss was sustained for lack of jurisdiction.

Appellants contend that:

1. KRS Chapter 230 limits the power of the State Racing Commission to assessment of fines and the denial, suspension and revocation of licenses.
2. If the legislature has given the Racing Commission the right to determine controversies .affecting only the private property rights of individuals, it is an unconstitutional delegation of authority.
3. The letter sent appellants by the Racing Commission on December 3, 1960, did not meet the notice requirements of due process.

On this appeal from the Jefferson Circuit Court it must first be determined whether the Kentucky Racing Commission had its right properly delegated by the Kentucky Legislature to:

Adopt binding rules controlling claiming races and the obligations purportedly set up thereunder of the owner, as well as the claimer, and to determine and enforce such obligations.

This appeal is predicated upon the Racing Commission’s requiring the appellants to pay for and accept “Royal Spy” as their property, which order of the Commission they attempted to circumvent by filing their action in the Jefferson Circuit Court relative to a determination of a property right.

The Kentucky Legislature has created numerous commissions whose duties and purposes are to determine property interests. The courts have long upheld the rights of such commissions to perform the functions created by Statute. KRS 131.110. The Kentucky Department of Revenue in assessing taxes against any person is dealing with a property-right by requiring such person to pay taxes, and provision is made for appeals from the Department of Rev-[236]*236cnue’s rulings to the Kentucky Tax Commission. KRS 131.110. It is further provided by statute that appeals from the orders of the Kentucky Tax Commission are directed to the Franklin Circuit Court concerning any question of law, including adequacy of evidence. KRS 131.120.

The statutes provide that the Public Service Commission may regulate the rates and services of any utility furnishing services to a city. KRS 278.200 and KRS 278.-270. It is also provided that an action may be brought against the Commission in the Franklin Ciircuit Court to vacate or set aside the order of the Commission. KRS 278.410. The Tax Commission, or the Public Service Commission, in assessing taxes, or in requiring the payment of higher or lower utility rates, is dealing with property rights of individuals or corporations. Each commission is granted by statute certain discretionary powers as to what is reasonable, just or sufficient, and may substitute their judgment where they, after hearings, determine that existing conditions are improper.

In creating the Kentucky Racing Commission, the Kentucky Legislature authorized the Commission to make rules and regulations governing horse racing in Kentucky, as well as persons and associations having to do with the conduct of racing meets.

' In State Racing Commission v. Latonia Agricultural Ass’n, 136 Ky. 173, 123 S.W. 681, 25 LRA, NS, 905, this court upheld '.the constitutionality of the State Racing Act under the police powers of the state, ’and again in Douglas Park Jockey Club v. Talbott, 173 Ky. 685, 191 S.W. 474, [err. dis. 249 U.S. 619, 39 S.Ct. 260, 63 L.Ed. 804], where the Racing Commission placed minimum limits on the size of the purse for races, this court held such regulation to be constitutional and therefore delegable by the legislature to an administrative agency. It is clear then that the power of the Racing Commission is not limited to the granting, refusing or suspension of licenses.

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Bluebook (online)
380 S.W.2d 233, 1964 Ky. LEXIS 292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bobinchuck-v-levitch-kyctapp-1964.