Maryland Racing Commission v. Castrenze

643 A.2d 412, 335 Md. 284, 1994 Md. LEXIS 88
CourtCourt of Appeals of Maryland
DecidedJune 28, 1994
Docket140, September Term, 1991. No. 11, September Term, 1992
StatusPublished
Cited by13 cases

This text of 643 A.2d 412 (Maryland Racing Commission v. Castrenze) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Racing Commission v. Castrenze, 643 A.2d 412, 335 Md. 284, 1994 Md. LEXIS 88 (Md. 1994).

Opinions

ELDRIDGE, Judge.

The principal issue before us in these cases concerns the relationship between the license suspension provisions of the Maryland Administrative Procedure Act (“APA”), Code (1984, 1993 RepLVol.), § 10-405 of the State Government Article, and a regulation of the Maryland Racing Commission providing that the Commission will reciprocally honor a suspension of a trainer’s license by a sister racing jurisdiction.1 For the [288]*288reasons discussed below, we hold that the automatic disqualification of a trainer from racing in Maryland by virtue of a foreign suspension does not itself amount to a license suspension by the Maryland Racing Commission and, therefore, does not require compliance with § 10-405 of the APA. Furthermore, we hold that, in the context of reciprocally honoring another jurisdiction’s suspension, due process requirements are satisfied when the trainer is promptly given written notice of the facts deemed to warrant the reciprocal ruling and is informed of the opportunity to be heard on the matter.

I.

This opinion involves two separate cases, and we set forth below the facts of each case.

A. No. HO, Maryland Racing Commission v. Castrenze

Charles H. Castrenze, Jr., is licensed in Maryland and Delaware, as well as in other states, as a trainer of thoroughbred race horses. On June 30, 1990, Castrenze failed to arrange for the timely administration of Furosemide (Lasix) to a horse which he had entered in a Delaware race, resulting in a late scratch. Consequently, on July 2, 1990, the Delaware Stewards fined Castrenze one hundred dollars. When Castrenze failed to pay the fine or take an appeal after 20 days had elapsed, the Delaware Stewards suspended his trainer’s license. A copy of the suspension notice was mailed to Castrenze from Delaware on July 23, 1990. On July 28, 1990, Castrenze paid the Delaware fine and was restored to good standing.

[289]*289On July 24, 1990, a horse trained by Castrenze was entered in the fourth race at the Laurel Race Course in Maryland. The horse, ELLOREE, won the race. Notice of Castrenze’s Delaware suspension was published one day later in the Daily Racing Form of July 25, 1990. A competing trainer saw the publication and filed a protest with the Maryland Stewards on July 26, 1990, claiming that Castrenze had been ineligible to race ELLOREE in Maryland while under suspension in Delaware.

Thereafter, the Stewards gave Castrenze notice, and they conducted a hearing in the matter on August 4, 1990. After hearing testimony and reviewing the evidence, the Stewards determined that since “trainer Charles [H.] Castrenze was ineligible to participate in racing at Laurel Race Course on Tuesday, July 24, 1990,” the horse ELLOREE was “disqualified from first position and placed last in the fourth race on Tuesday, July 24, 1990.” Two Racing Commission regulations, when read together, provided the basis for the Stewards’ determination. COMAR 09.10.01.48A provides for the Commission’s recognition of a suspension issued by an authorized racing association in any other jurisdiction.2 COMAR 09.10.01.17(CC) provides that a horse managed by a disqualified person may not be entered in a race.3 Applying these provisions, the Stewards disqualified ELLOREE from first position, placed ELLOREE last in the race, and ordered that the purse be redistributed according to the new order of finish.

[290]*290Castrenze appealed the Stewards’ decision to the Maryland Racing Commission, claiming that he had not been notified of his Delaware suspension, either by the Delaware racing authority or the Maryland Racing Commission, prior to the running of the race in Maryland. The Racing Commission held a de novo hearing on the matter on December 12, 1990.

Initially at the hearing, the testimony of the Commission’s chief investigator established that Castrenze had been under a Delaware suspension when he raced ELLOREE in Maryland on July 24, 1990. The remainder of the testimony at the hearing centered on whether Castrenze received notice by the Delaware Stewards of their suspension in time to affect his decision to race in Maryland. One administrative Steward testified that, regardless of when the Delaware notification may have been sent, “[t]he point [of Maryland’s reciprocity ruling] was that a man is ruled off when the ruling is issued by the governing body.” At the end of the hearing, the Racing Commission unanimously voted to uphold the Stewards’ decision, informing Castrenze that

“[t]he rule says a horse may not be qualified to be entered or to start in any race if owned in whole or in part or is under the management directly or indirectly of a disqualified person. There’s no requirement as far as notice is concerned, and [Mr. Castrenze] we’re sympathetic toward you ... but the rule states and it really binds the Commission---- [W]hen that horse ran you were disqualified whether or not you had notice.”

In its written Memorandum and Order issued on January 18, 1991, the Commission alternatively held that “[t]rainer Charles H. Castrenze, Jr. was properly notified that he had been fined $100 by the Delaware Stewards on June 30, 1990, and that such fine must be paid within 48 hours of its imposition absent a timely appeal.” The Commission further found that “[t]rainer Castrenze raced the horse ‘ELLOREE’ in the fourth race at Laurel Race Course on July 24, 1990, while under suspension by the Delaware Racing Commission for failure to pay the fine.” Taking into account only the fact [291]*291of the Delaware suspension and the timing of the Maryland race, the Commission concluded:

“By virtue of his suspension in Delaware and being denied the privileges of the grounds in Delaware, trainer Castrenze was, likewise, under a suspension and denied the privileges of the grounds of race tracks in Maryland. CO-MAR 09.10.01.48(A).
“... On July 24, 1990, the horse ‘ELLOREE’ was under the management of trainer Castrenze, then a disqualified person, and, as a result, the horse was not qualified to start the fourth race at Laurel Race Course on that date. CO-MAR 09.10.01.17[ (CC) ].”

Castrenze filed this action for judicial review in the Circuit Court for Anne Arundel County. The circuit court, framing the issue as “whether the Maryland Racing Commission may suspend the license of a horse trainer pursuant to its reciprocity regulations without first providing notice of such suspension and an opportunity to be heard,” held that the action of the Racing Commission violated § 10-405 of the APA. In overruling the Racing Commission’s decision, the court stated as follows:

“The Racing Commission’s application of its reciprocity regulation runs counter to the clear language of the statute requiring both notice and an opportunity for a hearing prior to the suspension of a license. Here Appellant was not provided with both notice and an opportunity to be heard until after July 24, 1990, the relevant date of suspension in Maryland. After first providing both notice and a hearing, the Racing Commission could have suspended Appellant as of the time of the initial hearing on August 4, 1990, but it could not suspend retroactively back to July 24, 1990.”

The Racing Commission then appealed to the Court of Special Appeals, and, before consideration of the case by that court, we issued a writ of certiorari.

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Cite This Page — Counsel Stack

Bluebook (online)
643 A.2d 412, 335 Md. 284, 1994 Md. LEXIS 88, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-racing-commission-v-castrenze-md-1994.