Grand Casino Biloxi v. Hallmark

823 So. 2d 1185, 2002 Miss. LEXIS 265, 2002 WL 1980410
CourtMississippi Supreme Court
DecidedAugust 29, 2002
Docket2000-CC-01115-SCT
StatusPublished
Cited by3 cases

This text of 823 So. 2d 1185 (Grand Casino Biloxi v. Hallmark) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Casino Biloxi v. Hallmark, 823 So. 2d 1185, 2002 Miss. LEXIS 265, 2002 WL 1980410 (Mich. 2002).

Opinion

823 So.2d 1185 (2002)

GRAND CASINO BILOXI
v.
David HALLMARK.

No. 2000-CC-01115-SCT.

Supreme Court of Mississippi.

August 29, 2002.

Kathryn H. Hester, Keith R. Raulston, Jackson, attorneys for appellant.

T. Roe Frazer, II, Jackson, Warren Leon Conway, Gulfport, John Gordon Sims, III, attorneys for appellee.

EN BANC.

ON MOTION FOR REHEARING

DIAZ, Justice, for the Court.

¶ 1. The motion for rehearing is denied. The original opinions are withdrawn, and these opinions are substituted therefor.

¶ 2. On December 3, 1997, David Hallmark filed a Petition for Investigation with the Mississippi Gaming Commission (Commission) disputing Grand Casino Biloxi's *1186 (Grand Casino) refusal to award Hallmark an alleged jackpot. The Commission concluded that he had not won the primary progressive jackpot because the machine had "entered a tilt condition and ceased to function." On January 15, 1998, Hallmark filed a Petition and Application for Hearing. The hearing was conducted on March 30, 1998, through April 3, 1998. On July 29, 1998, the hearing officer affirmed the decision of the enforcement agent and ruled that Hallmark did not win the jackpot.

¶ 3. Thereafter, on August 7, 1998, Hallmark requested a review of the hearing officer's decision by the Commission. On September 15, 1998, the Commission adopted the hearing officer's decision. On October 6, 1998, Hallmark appealed to the Circuit Court of the Second Judicial District of Harrison County. On June 21, 2000, the circuit court reversed the decision of the Commission and awarded Hallmark the $509,000.00 jackpot. Following entry of the circuit court judgment, Grand Casino filed a notice of appeal to this Court. We affirm the decision of the circuit court.

FACTS

¶ 4. On November 16, 1997, Hallmark went to Grand Casino Biloxi and played the Grand Bucks slot machine. He pulled the slot machine lever and saw "Grand Bucks" with bells ringing, lights flashing, and a scale that showed the progressive jackpot at $509,000.00. Casino employees arrived at the scene and informed Hallmark that the machine had malfunctioned.

¶ 5. Believing he had won the progressive jackpot, Hallmark requested that the Mississippi Gaming Commission get involved in the dispute. Before Commission employees arrived, the machine was entered and manipulated by casino employees who testified that the reels were spun and removed from the machine. The circuit court found that because the machine had been manipulated, the agent for the Commission did not have the benefit of conducting an investigation on the machine as it existed directly after the alleged jackpot. Also, on the same night as the dispute arose, a casino employee recorded over several relevant segments of video which showed footage of the events that took place as the casino employees were running tests on the slot machine in question. In addition, 15 other camera angles were erased or recorded over; therefore, the Commission and Grand Casino no longer had this evidence to assist in the final determination of the case. The casino also failed to preserve the custom buffer "cus buf" report which would have indicated every opening of the slot machine door, tilt conditions, jackpots, and other relevant information.

¶ 6. Based upon information provided by casino employees and information under the control of the casino, the agent for the Commission determined that the slot machine was in a tilted condition at the time Hallmark was playing it; therefore, Hallmark did not win the jackpot. After a subsequent investigation and a hearing, the Commission determined that Hallmark did not win the jackpot. The circuit court reversed the decision of the Commission. The circuit court determined that Hallmark's due process rights were violated because of Grand Casino's destruction of relevant evidence and the Commission's failure to conduct a proper investigation. This Court agrees with the circuit court's determination that Hallmark's due process rights were violated.

¶ 7. Grand Casino discusses in the body of its brief the following issues: due process; notice and an opportunity to be heard; the circuit court rejected the Commission's expertise; the record does not support the circuit court's finding of unfairness; and the record evidence supports *1187 the hearing officer's findings and conclusions. The circuit court did not reverse the Commission's determination on substantial evidence grounds, rather that court reversed on constitutional provisions, specifically the right of due process. The main focus of the circuit court concerned the prompt notification of a patron dispute to the Commission; proper preservation of evidence of the alleged jackpot; the investigation; and adherence to the gaming regulations. These issues can properly be considered as due process considerations. Based on several due process violations, the circuit court reversed the finding of the Commission and found in favor of Hallmark.

DISCUSSION

¶ 8. Pursuant to Miss.Code Ann. § 75-76-171(3), a reviewing court may reverse a decision of the Mississippi Gaming Commission when the substantial rights of the petitioner have been prejudiced due to a "violation of constitutional provisions." Miss.Code Ann. § 75-76-171(3)(a). The combined conduct of Grand Casino in its manipulation of evidence and of the Commission in its subsequent investigation resulted in a violation of Hallmark's due process rights.

I. WHETHER THE CIRCUIT COURT PROPERLY REVERSED THE HEARING OFFICER'S DECISION AND FOUND THAT HALLMARK'S DUE PROCESS RIGHTS WERE VIOLATED?

A. WHEN THE DISPUTE OCCURRED, DID THE CASINO'S FAILURE TO IMMEDIATELY NOTIFY THE COMMISSION RESULT IN A DENIAL OF HALLMARK'S DUE PROCESS RIGHTS?

¶ 9. Miss.Code Ann. § 75-76-159 states that "(1) whenever a licensee refuses payment of alleged winnings to a patron, the licensee and the patron are unable to resolve the dispute to the satisfaction of the patron and the dispute involves: (a) at least Five Hundred Dollars ($500.00), the licensee shall immediately notify the executive director;" Miss.Code Ann. § 75-76-159(1). The circuit court found that, despite this mandatory requirement, Grand Casino employees refused to immediately notify the executive director that a dispute had arisen. At the hearing Hallmark testified:

while I was sitting there and being told that this was a malfunction and that the machine wasn't working, somebody, a patron, whispered in my ear, have them call the Gaming Commission, which was the first I had ever heard you could do so. So I requested that they call the Gaming Commission.

The casino actually discouraged Hallmark from involving the Commission, telling him:

well, we can do that, but we will have to post a guard at the machine and close the machine. Your credits will be tied up in the machine until they make a decision. And I said, well let's call the Gaming Commission. Well, they will tell you the same thing that we told you, that it malfunctioned. Let's hear it from them. Let's call them.

¶ 10.

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Cite This Page — Counsel Stack

Bluebook (online)
823 So. 2d 1185, 2002 Miss. LEXIS 265, 2002 WL 1980410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grand-casino-biloxi-v-hallmark-miss-2002.