Indiana State Fair Board v. Hockey Corp. of America

333 N.E.2d 104, 165 Ind. App. 544, 1975 Ind. App. LEXIS 1279
Indiana Court of Appeals·Decided August 28, 1975·No. 2-1273A269·Published·Cited by 10 cases

Opinion

Sullivan, P.J.

Appellee, Hockey Corporation of America (Hockey), commenced this action on May 22, 1973 in the Marion County Superior Court seeking injunctive relief and damages. From a judgment in favor of Hockey Corporation, the appellant, Indiana State Fair Board (Fair Board) appeals.

The operative facts, as viewed most favorably to the trial court’s judgment, establish the following-:

The Fair Board is a governmental instrumentality statutorily denominated as “the sole agency of the State of Indiana to administer said trust property [the State Fairgrounds] for and on behalf of the State of Indiana.” 1 Since 1964, Fair Board has operated a public ice skating rink and a retail and rental skate shop at the Coliseum on the Fairgrounds. Generally, Fair Board has shown a profit in its skating- and shop operation, and, according to appellant Estel L. Callahan, Secretary-Manager of the Fair Board, all revenues are placed in the Fair Board account for maintenance and improvement of the Fairgrounds. 2

Hockey Corporation is an Indiana for-profit corporation chartered under state law to operate ice skating rinks in the Indianapolis area. Since 1969, it has operated two rinks in Indianapolis. The scope of its corporate activity includes public and private group skating, skating lessons, and retail sales of skates and skating equipment. According to its financial records, Hockey has shown annual net profits from these activities.

*547 The gravamen of Hockey Corporation’s claim for injunctive relief, as gleaned from the complaint, is that the activities of the Board in operating the rink and shop exceed the powers conferred by the General Assembly; that such activities are ultra vires; and that they deprived Hockey of its due process rights under the Fourteenth Amendment to the United States Constitution in that such activities constituted “unfair competition” by the Board which, by virtue of its preferred tax status, was enabled to conduct such activity in a manner unfair to private corporations engaged in similar activities. Furthermore, Hockey contended that it was directly injured by the Board’s activity and sought damages for such, injury.

Following a bench trial, the court, on November 30, 1973, ruled that the Fair Board was unfairly competing with Hockey, and was operating outside the scope of the Indiana State Fair Board Act. 3 The court’s judgment enjoined the Fair Board’s operation of the skating rink and retail skate shop, ordered the Board to take competitive bids for operation of those activities, and awarded Hockey damages in the sum of $19,350.00.

On appeal, Fair Board properly perfected and presents the following contentions for our consideration:

1. The trial court erred in holding that Fair Board is not a corporate entity separate from the State.
2. The court’s finding that Fair Board was engaged in “unfair competition” with Hockey is contrary to law and contrary to the evidence; and that the court’s finding that the Fair Board’s activities were outside the scope of the Act, and therefore ultra vires, is erroneous.
3. The court lacked subject matter jurisdiction due to Fair Board’s attempted change of venue.
4. The trial court erred in granting Hockey a temporary restraining order, in extending the temporary order, and in failing to grant Fair Board a hearing on its motion to vacate the order.

*548 I

STATUS OF STATE FAIR BOARD

Our initial consideration is whether the Fair Board is a separate corporate entity, as the Board contends; or an agency of the State of Indiana, as contended by Hockey.

Ind. Ann. Stat. § 15-1-1-1 (Burns Code Ed. 1973) describes the Fair Board as “the sole agency of the state of Indiana to administer said trust property [State Fairgrounds] for and on behalf of the state of Indiana.” This enactment and other provisions of the Indiana State Fair Board Act were surveyed by the Federal District Court in Chicago Stadium Corp. v. State of Indiana (S. D. Ind. 1954), 123 F. Supp. 783, modified on other grounds, 220 F.2d 797 (7th Cir. 1955). The court, applying state law in a diversity contract action, held “. . . that the Indiana State Fair Board is an inseparable agency and not a separate entity of the State of Indiana. . . .” 123 F. Supp. at 790. Interestingly, in the instant case, the Fair Board asserts a position directly contrary to the one it advanced in Chicago Stadium Corp. In any event, like the Federal District Court, we find that the Fair Board is an agency of the State of Indiana in the context of this case. See also Busby v. Indiana Bd. of Agriculture (1927), 85 Ind. App. 572, 154 N.E. 883 (Fair Board predecessor held to be governmental agency).

II

WHILE THE FAIR BOARD DID NOT ENGAGE IN UNFAIR COMPETITION, ITS OPERATION OF SKATING RINK AND SHOP WAS OUTSIDE BOARD’S STATUTORY AUTHORITY

Fair Board asserts error in the trial court’s finding that Fair Board was engaged in “unfair competition” to the detriment of Hockey. Further, the Board argues that Hockey showed no acts of unfair or unlawful competition. Finally, the Board contends that its operation of the skating rink and shop is within the ambit of the State Fair Board Act. Hockey, *549 on the other hand, asserts the manifest unfairness of a governmental agency, with its attendant and substantial táx base advantages, competing in the private sector. Hockey also contends that the Board’s operation of the skating rink and shop is not authorized by the Act and therefore ultra vires.

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

Indiana State Fair Board v. Hockey Corp. of America, 333 N.E.2d 104, 165 Ind. App. 544, 1975 Ind. App. LEXIS 1279 (Ind. Ct. App. 1975).

333 N.E.2d 104 (Indiana State Fair Board v. Hockey Corp. of America) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Scott v. Consolidated City of Indianapolis
833 N.E.2d 1094 (Indiana Court of Appeals, 2005)
Sims v. Beamer
757 N.E.2d 1021 (Indiana Court of Appeals, 2001)
Indiana Grocery Co. v. Super Valu Stores, Inc.
684 F. Supp. 561 (S.D. Indiana, 1988)
Marsym Development Corp. v. Winchester Economic Development Commission
447 N.E.2d 1138 (Indiana Court of Appeals, 1983)
Indiana State Fair Board v. Hockey Corp. of America
429 N.E.2d 1121 (Indiana Supreme Court, 1982)
Anderson v. REVIEW BD. OF IND. EMP. SEC.
412 N.E.2d 819 (Indiana Court of Appeals, 1980)
Anderson v. Review Board of Indiana Employment Security Division
412 N.E.2d 819 (Indiana Court of Appeals, 1980)
Piskorowski v. Shell Oil Co.
403 N.E.2d 838 (Indiana Court of Appeals, 1980)
State, Department of Revenue v. American Motorists' Insurance
396 N.E.2d 907 (Indiana Court of Appeals, 1979)
Indiana Civil Rights Commission v. Sutherland Lumber
394 N.E.2d 949 (Indiana Court of Appeals, 1979)