Devillier v. State, Department of Public Safety & Corrections, Public Safety Services, Office of State Police, Division of Charitable Gaming Control, Gaming Enforcement Section

634 So. 2d 884, 1993 La. App. LEXIS 4006, 1993 WL 539928
CourtLouisiana Court of Appeal
DecidedDecember 29, 1993
DocketNo. CA 92 2120
StatusPublished
Cited by3 cases

This text of 634 So. 2d 884 (Devillier v. State, Department of Public Safety & Corrections, Public Safety Services, Office of State Police, Division of Charitable Gaming Control, Gaming Enforcement Section) 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
Devillier v. State, Department of Public Safety & Corrections, Public Safety Services, Office of State Police, Division of Charitable Gaming Control, Gaming Enforcement Section, 634 So. 2d 884, 1993 La. App. LEXIS 4006, 1993 WL 539928 (La. Ct. App. 1993).

Opinion

WHIPPLE, Judge.

This case is before us on appeal from a judgment of the trial court, which affirmed an administrative law judge’s order declaring appellants unsuitable for involvement in charitable gaming, and prohibiting appellants’ involvement in any charitable game of chance. For the following reasons, we affirm.

PROCEDURAL HISTORY

In January of 1991, the State of Louisiana, Office of State Police, Division of Charitable Gaming Control, Gaming Enforcement Section (hereinafter referred to as the Division), initiated proceedings by written notice to appellants, Russell J. Devillier (Russell), Lucy F. Devillier (Lucy), Allen Paul Devillier (Allen), Pete Ray Devillier (Pete), R & L Catering, Inc. (R & L), and PAP, Inc. (PAP), for disciplinary action to have appellants declared unsuitable for involvement in charitable gaming and prohibited from involvement in any charitable game of chance. The original and supplemental notices of disciplinary action were signed by Sergeant Frank T. Brown, director of the Louisiana State Police, Gaming Enforcement Section, and cited numerous grounds for taking action against appellants.1

[886]*886An administrative hearing was held on September 17, 18, and 19, 1991. In a decision rendered November 15,1991, the administrative law judge concluded that the parties had violated the charitable gaming law and that Russell, Lucy and R & L were unsuitable for involvement in charitable gaming in any capacity. The administrative law judge further concluded that due to the association among the parties involved, and the unsuitable business relationship between the parties (including Russell and Lucy’s continuing direct and indirect financial interest in PAP), that Pete, Allen, and PAP, were also unsuitable for involvement in charitable gaming in any capacity.

The parties then filed a petition in the trial court for judicial review of the administrative law judge’s decision. Following a hearing, the trial court rendered judgment in favor of the Division, affirming the decision of the administrative law judge, pursuant to LSA-R.S. 49:964(G). This appeal followed.

BACKGROUND FACTS

The Parks Youth Club (Parks) is a nonprofit charitable organization in Parks, Louisiana, which was formed to help the underprivileged. Russell and Lucy have been members of Parks since 1978. In 1980, Russell and Lucy formed a corporation named R & L’s, to conduct catering services. On October 9, 1984, Russell and Lucy purchased a facility which eventually became known as R & L’s. This facility was used for R & L’s catering services, as well as bingo. In 1984, Parks began conducting bingo games at the facility known as R & L’s.

In 1986, Parks, for the first time, was required to operate pursuant to a charitable gaming license issued by the Division. Parks submitted its application for a gaming license; however, the application was initially denied as being in conflict with applicable laws. Specifically, the application was denied because Lucy was listed as an officer of Parks and/or a bingo manager for Parks, which sought to conduct gaming activities at R & L’s. In an effort to resolve these conflicts, Russell and Lucy executed an affidavit certifying that they would not participate in any bingo activities held by Parks at R & L’s. Parks was then issued a gaming license, which was renewed in 1987, 1988, 1989,1990, and 1991.

In 1988, the Division conducted an audit of Parks, covering the second quarter of 1987, through the first quarter of 1988 (April 1, 1987 to March 31, 1988). The audit revealed that seven gaming sessions had been conducted, which were not included on the approved license. Additionally, the audit revealed that the net proceeds to the charitable organization, after expenses, were only 0.2% compared to a statewide average of over 12%. The rental charged to Parks was $350.00 per session. As a result of this audit, the Division made recommendations to improve deficiencies noted.

A second audit was conducted covering the third quarter of 1988. The audit revealed that while the rental charged to Parks had been increased to $1,000.00 per session in the third quarter of 1988, net proceeds had increased substantially.

On May 8, 1990, a corporation named P.A.P., Inc. (PAP) was formed by Pete Devil-lier, Russell and Lucy’s son, and Allen Devil-lier, Russell and Lucy’s nephew. On May 23, 1990, Russell and Lucy executed a Credit Deed wherein they sold the building, known as R & L’s, to PAP. R & L’s (the corporation) maintained a management contract with PAP, allowing R & L’s (the corporation) to manage the building and its operations. Thus, Russell continued to run the business, including negotiation of leases, while Allen merely signed the lease agreements. PAP paid a management fee to R & L’s in the amount of $14,000.00 per month. According to Russell, Lucy, Pete and Allen, the decision to transfer the building in 1990, was made on the basis of Russell’s deteriorating health, and to allow the business to operate without interruption in the event of Russell's death.

In the 1987 and 1988 gaming license applications submitted by Parks, Desiré Bonin, Jr., was listed as the bingo caller. In the 1989, application, Raymond Doré was listed as the bingo caller in Parks’ application. [887]*887However, in the Parks application submitted on June 5, 1990, Russell was listed as the bingo caller. Additionally, the Parks application submitted in 1990 listed PAP as the commercial lessor.

On August 9, 1990, the Division conducted a covert investigation of PAP. At the gaming session, Sergeant David W. Richard, enforcement sergeant for the Division, observed Russell actively participating in the games as the bingo caller. The investigation continued, and on August 12, 1990, Trooper Bruce Stansbury observed Russell again calling bingo games being conducted by Parks. According to the Division, Russell participated as bingo caller on six occasions in August of 1990. During the course of the investigation, other violations were noted, and, in some instances, citations were issued.

Russell testified at the hearing that he only called three bingo games in August of 1990, and did so only because the usual caller, Raymond Doré, was ill with laryngitis. Doré and Russell also explained at the hearing that prior to submission of the 1990 application for a gaming license, the Parks membership discussed Russell’s position as an alternate caller, only in the event that the usual caller, Doré, was unavailable. Accordingly, Parks submitted the application, listing Russell as caller.

Based on the facts uncovered during the Division’s continuing investigation, proceedings were initiated against the parties, which eventually resulted in the instant appeal of the administrative law judge’s decision and its affirmation by the trial court. ■

ASSIGNMENT OF ERROR NUMBER ONE

The administrative law judge found, and the trial court affirmed the finding, that Russell violated the Louisiana Charitable Gaming Law. Specifically, the administrative law judge found that Russell violated LSA-R.S. 33:4861.12A(3), by participating in the holding, operating and conducting of charitable games of chance for Parks while operating as a commercial lessor and acting as an agent for PAP.

On appeal, Russell contends that he is not a commercial lessor, as defined in LSA-R.S.

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Related

Jordan v. Louisiana Gaming Control Bd.
712 So. 2d 74 (Supreme Court of Louisiana, 1998)
Thomas v. ORLEANS PRIV. INDUSTRY COUNCIL, INC.
669 So. 2d 1275 (Louisiana Court of Appeal, 1996)

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634 So. 2d 884, 1993 La. App. LEXIS 4006, 1993 WL 539928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/devillier-v-state-department-of-public-safety-corrections-public-lactapp-1993.