Livingston Downs Racing Ass'n v. State

705 So. 2d 149, 1997 WL 762720
CourtSupreme Court of Louisiana
DecidedJanuary 7, 1998
Docket96-CA-2890
StatusPublished
Cited by13 cases

This text of 705 So. 2d 149 (Livingston Downs Racing Ass'n v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Livingston Downs Racing Ass'n v. State, 705 So. 2d 149, 1997 WL 762720 (La. 1998).

Opinion

705 So.2d 149 (1997)

LIVINGSTON DOWNS RACING ASSOCIATION, INC.
v.
STATE of Louisiana, et al.

No. 96-CA-2890.

Supreme Court of Louisiana.

December 2, 1997.
Dissenting Opinion January 7, 1998.
Rehearing Denied January 9, 1998.

*150 James M. Ross, Richard P. Ieyoub, Atty. Gen., J. Carter Wilkinson, Charles S. McCowan, Jr., James P. Dore, Troy J. Charpentier, Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, Kirk A. Bergeron, Salvador Anzelmo, George M. Cotton, Hoffman, Sutterfield, Ensenat & Bankston, Kim R. Chatelain, Baton Rouge, for Applicant.

Victor A. Sachse, III, Darlene S. Ransome, Claude F. Reynaud, Jr., Jude C. Bursavich, C. James Gelpi, David S. McFadden, New Orleans, for Respondent.

Henry C. Perret, Jr., Marilyn C. Castle, Lafayette, for Old Evangeline Downs, Amicus Curiae.

Dissenting Opinion of Justice Lemmon January 7, 1998.

JOHNSON, Justice.

This matter comes before the court as a direct appeal from a trial judge's determination that a portion of LSA-R.S. 4:211(5) is unconstitutional.[1] At issue is whether portions of the Louisiana offtrack wagering legislation violate both the state and federal constitutions. Specifically, we must determine whether language contained within LSA-R.S. 4:211(5), infringes upon plaintiff's right to equal protection. Additionally, we must decide whether the offtrack wagering legislation is a local or special law and whether the statute is being selectively enforced.

FACTS AND PROCEDURAL HISTORY

The pertinent facts of this case are not in dispute. During the 1987 legislative session, statutes were enacted to allow offtrack wagering in Louisiana at pari-mutuel facilities. At that time there were five primary racing facilities conducting horse races, namely, Delta Downs, Evangeline Downs, the Fairgrounds Corporation, Jefferson Downs and Louisiana Downs. These five primary racing associations owned race tracks. Two other racing associations were operating in Louisiana but were not primary licensees. Red River Downs was operating pursuant to a lease at Louisiana Downs, while Lakefront Turf Club operated at Jefferson Downs. The five associations met the definition of "primary licensee" and were eligible to conduct offtrack wagering. LSA-R.S. 4:211(7) states that a primary licensee is a licensed association conducting the majority of race days at a pari-mutuel facility. A pari-mutuel facility is defined within LSA-R.S. 4:211(5) as any pari-mutuel race track conducting horse races during or prior to the 1986-87 racing season.

In 1992, Jefferson Downs closed. Thereafter, Livingston Downs Racing Association (hereafter referred to Livingston Downs) applied to the Louisiana State Racing Commission (hereafter referred to as Racing Commission) for a permit to conduct live horse racing in Livingston Parish. It intended to apply for the racing dates left open due to the closure of Jefferson Downs. Additionally, Livingston Downs applied for a license to conduct and operate an offtrack wagering facility.

The Racing Commission met on May 27, 1993 in Boissier City. At this meeting, the Racing Commission heard testimony from representatives for Livingston Downs and voted on its request for application of racing dates with 55 days of thoroughbred racing, *151 50 days of quarter horse racing, and a single on-site wagering facility. The testimony shows that Livingston Downs amended its application to delete any reference to an offtrack wagering license. In fact, the Chairman, Oscar Tolmas, opined that any offtrack wagering application made by Livingston Downs could not be placed on the agenda because the Racing Commission was forbidden by statute from considering it.[2] All members present, with the exception of Commissioner Darlene Ranson[3] who abstained, voted in favor of Livingston Downs' application. Despite having its license approved to conduct live horse racing, the record shows that Livingston Downs has never offered any horse races nor have they opened a racing facility.

On October 19, 1993, Livingston Downs filed suit in the 19th Judicial District Court (No. 399, 563) seeking both declaratory and injunctive relief. The case was allotted to Division "M". In this suit, petitioner requested that the court declare LSA-R.S. 4:211(5) & (7), and 4:214(A)(1) unconstitutional because Livingston Downs was denied equal protection. The Fairgrounds Corporation intervened on October 22, 1993.

On November 8, 1993, the trial court denied Livingston Downs' request for injunctive relief. The Fairgrounds then moved for summary judgment requesting a dismissal of Livingston Downs' claims. On April 18, 1994, summary judgment was rendered in favor of the Fairgrounds and plaintiff appealed to the First Circuit Court of Appeal. In its decision of April 7, 1995, the appellate court reversed the trial court's findings on the application for injunctive relief and the summary judgment motion. Finding that the offtrack wagering law "appeared" to benefit a very exclusive class, the appellate court remanded the case and ordered that the trial court take additional evidence to show who are the actual beneficiaries of offtrack wagering. Livingston Downs Racing Association, Inc. v. State of Louisiana Through Edwin W. Edwards, Individually and as Governor, et al., 94-1514 (La.App. 1 Cir. 47/95), 653 So.2d 1311.

The procedural history of this convoluted litigation shows that while the appeal was pending, Livingston Downs filed another suit in the 19th Judicial District Court (No. 413,022) against the State and other defendants. This action was allotted to Division "A". After amending its petition, Livingston Downs once again sought injunctive relief and a declaratory judgment aimed at the payouts of video poker machines. Under La. R.S. 27:304, a video poker device cannot render awards or credits in excess of $500.00. However, this statute has an exception which allows the credits at a maximum of $1,000.00 where live racing is conducted or where pari-mutuel wagering is offered. The cases were eventually consolidated and were sent to Judge Foster Sanders of Division "A".

A trial de novo was conducted from May 28 through 31, and June 3, 4, 6 and 7, 1996. The trial court determined that because the statute at issue, LSA-R.S. 4:211(5), contained restrictive language, it was a local and special law in violation of Art. III, Sec. 12 of the Louisiana Constitution. Specifically, the trial judge opined that the phrase "during the 1986-87 racing season and prior to the effective date of this part" rendered the statute unconstitutional. The restriction denies any association which obtained its license subsequent to 1988, the right to own and operate a facility for offtrack betting. The trial court further found that the actual beneficiaries of the offtrack wagering laws are those persons who operated race tracks when the legislation was passed. The offtrack wagering legislation therefore benefited a special class as opposed to the entire state without any compelling reasons. According to the lower court, the Legislature granted a new right to a select group of track owners, but did not make the same right available to the general public without a rational basis. The trial court concluded LSA-R.S. 4:211(5) denied plaintiff equal protection as guaranteed by both the state and federal constitutions. The defendants were then assessed with costs and attorney's fees in the amount of $37,500.00. *152 The amount was later increased to $57,500.00.

DISCUSSION

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Bluebook (online)
705 So. 2d 149, 1997 WL 762720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/livingston-downs-racing-assn-v-state-la-1998.