Brown v. Marine Club, Inc.

365 N.E.2d 1277, 51 Ohio Misc. 51
CourtCuyahoga County Common Pleas Court
DecidedAugust 6, 1976
DocketNo. 950,438
StatusPublished
Cited by3 cases

This text of 365 N.E.2d 1277 (Brown v. Marine Club, Inc.) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Marine Club, Inc., 365 N.E.2d 1277, 51 Ohio Misc. 51 (Ohio Super. Ct. 1976).

Opinion

George J¿ McMonagle, J.

This is an action -filed by the Attorney General of Ohio against the Marine Club, Inc., Iwo Jima Post, Patrick Pace and Charles Pace,* as trustees, and unnamed agents, employees and officers ;of'the foregoing defendants.

The plaintiff contends that he is the person charged by B. C. 109.23, as amended ( the Ohio Charitable Trust Act), and by R. C. 1716.01 et seq. (the Ohio Charitable Solicita[52]*52tions Act), and at common law, with the protection, supervision and enforcement of charitable trusts and charitable solicitations in Ohio; that the defendants in the operation of bingo games are subject to the provisions of said statutes and that they have failed to comply with the requirements thereon; that the defendants have and are operating bingo games for the purported purpose of benefiting a charitable cause or charitable organizations and are, therefore, subject to the requirements of R. C. 109.23 et seq. and R. C. 1716.01 et seq.; and that their failure to comply consisted of the failure to register as required by R. C. 109.26 and 109.31, and also to register as required by R. C. 1716.02, to file an annual surety bond as required by R. C. 1716.05, and to file annual reports as required by R. C. 1716.04.

Plaintiff further contends that by the receipt of monies for a charitable purpose or cause from the operation of said bingo games, that the individual defendants became, and are, trustees of a charitable trust and have failed to apply a reasonable amount of the funds so solicited to charitable causes or purposes and have, thereby, breached statutory and fiduciary duties. The prayer of the complaint reads as follows:

“WherefoRE, plaintiff Attorney General William J. Brown prays that this court:
“1. Grant and decree judgment for the plaintiff on. each of the five counts contained herein.
“2. Pursuant to counts I, II, III and IV, order that defendants register and file annual financial reports with the Attorney General as required for each and all years in which defendants have managed, conducted, operated or controlled bingo games and/or other similar games of chance for a charitable cause or purpose.
“3. Pursuant to counts I through V, temporarily restrain, preliminarily and permanently enjoin defendants from managing, conducting, operating or controlling any bingo games on behalf of purported charitable purpose!s) or organiziation(s) unless the defendants meet the following requirements:
[53]*53“a) properly, register and file financial reports as the Attorney General shall require pursuant to R. C. §109.23 et seq., as amended, and R. C. §§1716.01 et seq., including the filing of monthly financial reports detailing gross receipts, expenses, and allocations to charity;
“b) allocate and disburse a minimum of one-third (33 1/3%) of the gross receipts derived from the managing, conducting, operating or controlling of all past and future bingo games and/or schemes of chance to charitable purposes within a reasonable time.
“c) retain a certified or independent public accountant to maintain the financial records of said bingo games and/or schemes of chance to verify the accuracy of such records to the Attorney General.
“4. Issue pursuant to count Y, preliminary and permanent injunctions enjoining defendants from disbursing, disposing of, dissipating, concealing and encumbering, altering, or removing from Ohio, the bank accounts, monies, pledges, choses in action, or assets or property, real or personal, tangible or intangible, in any form or place acquired by defendants as a result of bingo games and/or games of chance described herein unless defendants transfer to a charitable cause or purpose or charitable organization sueh amount of monies as the court shall determine to be reasonable in relation to the amount of monies solicited in the bingo games and/or games of chance previously conducted by defendants.
“5. Pursuant to count V, order that the amount of money applied to charitable purposes is per se unreasonable.
“6. Pursuant to counts I through V, order defendants to make an accurate and verified accounting to this court for all funds, pledges, property, and other things of value received by defendants from the managing, conducting, operating or controlling of bingo games and/or games of chance.
“7. Order defendants to pay the costs of this action.
“8. Order such other and further relief as justice and equity may require in the premises.”

[54]*54Defendants filed a joint answer admitting their operation of bingo games, denying the authority of the Attorney General to bring the within action, and denying that they ¿re subject to R. C. 109.23 et seq. and 1716.01 et seq.

The court finds that the Attorney General of Ohio does have both statutory and common law authority to bring the within action. Subsequent to the filing and trial of the within action, the legislature adopted' Substitute Senate Bill No. 398 (R. C. 2915.01 et seq.), which is commonly referred to as the “Charitable Bingo Act.” This Act authorizes the conduct of games of bingo for charitable purposes and contains specific regulations for the operation of bingo games. It also requires the procuring of licenses and the keeping of records. This Bill was enacted in accordance with provisions of Article XV, Section 6, of the Ohio Constitution, as amended. It was adopted April 26, 1976, and approved by the Governor, on May 26, 1976, and reads as follows:

“Lotteries, and the sale of lottery tickets, for any purpose whatever, shall forever be prohibited in this State, except that the General Assembly may authorize an agency of the state to conduct lotteries, to sell rights to participate therein, and to award prizes by chance to participants, provided the entire.net proceeds of any such lottery are paid into the general revenue fund of the state and the General Assembly may authorize and regulate the operation of bingo to be conducted by charitable organizations for Charitable purposes. (Amended, effective November 5, 1975; HJR No. 16.)”

The bingo operations of the defendants were conducted prior to the adoption of Substitute Senate Bill No. 398 and subsequent to the adoption of the Constitutional Amendment.

• The court must now determine whether all or some of the issues herein have become moot by virtue of the enactment of the Bingo Act. The Act was to permit and regulate' the operation of bingo games for charitable purposes only. It is the contention, of the Attorney General that even though bingo games are now operated in compliance with the said Bingo Act, that those who operate such [55]*55games, together with their employees, are nevertheless subject to the provisions of R. C. 109.23 et seq. and R. C. 1716.01 et seq. The Act includes the following:

R. C. 2915.01:

“As used in Sections 2915.01 to 2915.12 of the Revised Code:
" ***

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Bluebook (online)
365 N.E.2d 1277, 51 Ohio Misc. 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-marine-club-inc-ohctcomplcuyaho-1976.