New York Racing Ass'n v. State of New York Racing & Wagering Board

21 Misc. 3d 379
CourtNew York Supreme Court
DecidedAugust 18, 2008
StatusPublished

This text of 21 Misc. 3d 379 (New York Racing Ass'n v. State of New York Racing & Wagering Board) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Racing Ass'n v. State of New York Racing & Wagering Board, 21 Misc. 3d 379 (N.Y. Super. Ct. 2008).

Opinion

OPINION OF THE COURT

Walter B. Tolub, J.

This CPLR article 78 application raises the question of whether information concerning competitive bidding policies are exempted from disclosure under the New York Freedom of Information Law (FOIL) because the information sought constitutes confidential proprietary or trade information (Public Officers Law § 87 [2] [d]).

By this application, made both pursuant to CPLR article 78 and section 89 (5) (d) of the Public Officers Law, petitioner New York Racing Association (NYRA) moves for an order vacating the portion of the March 9, 2007 determination of the State of New York Racing and Wagering Board’s (NYSRWB) Records Access Appeals Officer Robert A. Feuerstein, which upheld the determination of NYSRWB Secretary Gail Pronti issued on February 15, 2007 denying petitioner’s application to except certain documents from FOIL disclosure under Public Officers Law § 87 (2) (d).

Background

Petitioner, the New York Racing Association is a private stock corporation incorporated and existing under the laws of the State of New York. NYRA is subject to regulation by respondent, State of New York Racing and Wagering Board, a regulatory body within the executive department of the State of New York organized under section 101 of the Racing, Pari-Mutuel Wagering and Breeding Law.

Organized as a nonprofit horse racing organization pursuant to section 202 of the Racing, Pari-Mutuel Wagering and Breeding Law, NYRA, pursuant to a New York State franchise, conducts year-round Thoroughbred horse racing and wagering operations at Aqueduct Racetrack, Belmont Park Racetrack, and Saratoga Race Course.1 In addition to its racing and wagering operations, NYRA sells the simulcasts (live audio-visual signals) it produces of its races to other racing and gaming entities in connection with pari-mutuel wagering thereon and is [381]*381also engaged in the simulcasting of horse races from areas throughout the United States and the placement of pari-mutuel wagers on those races.

Presently, NYRA is competing against other commercial enterprises to obtain the renewal of its longtime New York State racing franchise. NYRA is also currently a debtor in bankruptcy in an action before the US District Court for the Southern District of New York, and has recently proposed the confirmation of its plan of reorganization.2

This application arises in connection with the January 2007 FOIL request made by nonparty Paul Post, a reporter for the Saratogian newspaper. Mr. Post’s request sought information concerning confidential bidding correspondence between NYRA and the NYSRWB concerning 10 proposed changes3 to NYRA’s NYSRWB-approved “above-$250,000 competitive bidding policy.” NYRA was obligated to provide NYSRWB with this confidential correspondence under the Racing, Pari-Mutuel Wagering and Breeding Law, and did so accompanied by a request for exemption from FOIL disclosure due to the nature of the documents and the information contained therein.

On February 15, 2007, NYRA was informed by Gail Pronti, NYSRWB’s Secretary and Records Access Officer, that notwithstanding NYRA’s objections, the information contained within the FOIL request was not excepted from disclosure. In pertinent part, Ms. Pronti’s letter reads:

“I do not agree that you have met the burden that they [the documents] be exempted pursuant to the Freedom of Information Law § 87 (2) (d). The first six (6) items were approved by the Board as amendments to the required bidding process and as such should be publicly available. Since the last four (4) items were not approved and are not in effect they would appear to be of no value to competitors” (petition, exhibit 3).

NYRA, through its counsel, appealed the February 15 determination, arguing that the material sought in Mr. Post’s FOIL request was exempted from disclosure because it was comprised entirely of proprietary trade secret information, the release of which could be detrimental to petitioner’s business operations [382]*382(petition, exhibit 5). By letter dated March 9, 2007, respondent Robert A. Feuerstein, NYSRWB’s Counsel and Records Access Appeals Officer issued a determination upholding the release of correspondence pertaining to the six changes which were later adopted by NYSRWB, and denying the release of those materials pertaining to the remaining four changes. In pertinent part, Mr. Feuerstein’s letter reads:

“The only record deemed to be responsive to the application for access is the four (4) page summary chart prepared by Board staff. It is a chart, which sets forth the existing text of the relevant procedure, the proposed new text, and NYRA’s justification for the proposed change. Three pages concern the six items that the Board approved as amendments and thus state these new procedures. The final page concerns the four proposals that were not approved by the board. The record is derived from writings submitted by NYRA, which were accompanied by the request that the records and information therein be excepted from disclosure pursuant to Public Officers Law (‘POL’) § 87 (2) (d). . . .
“Upon review, I find that NYRA has not met the burden of proof concerning the six proposed changes that were approved by the Board and are now formally part of the bidding procedures. In my opinion, there is nothing contained in this text or the justification presented that would create a likelihood of substantial injury to NYRA’s competitive position if disclosed. A review of the text appears to support the proposition that some of this information is disclosed to potential bidders as part of the RFP process, and thus is known in the industry. Other changes are ministerial changes to rather elementary provisions. The arguments presented are general in nature and fail to demonstrate that the limited information to be made available will result in the likelihood of substantial injury to NYRA’s competitive position. The cases cited in support of NYRA’s argument are not dispositive in that these involve generally contracts in effect or specific financial details.
“In contrast to the finding about the six proposed and eventually approved changes, I find that NYRA has met the burden of proof concerning the four proposed changes that were not approved by the [383]*383Board. These are not part of the approved bidding procedures. Disclosure of the suggestions and limited rationale for these may inure to NYRA’s competitive disadvantage by revealing the manner in which NYRA views bids submitted under procedures it desires to clarify or replace.” (Petition, exhibit 5.)

This application followed.

Discussion

Judicial review of agency determinations traditionally limits the court’s scope of analysis to whether the challenged determination was rationally based, or whether it was made in violation of lawful procedure, was affected by an error of law, was arbitrary and capricious or an abuse of discretion (CPLR 7803; Matter of Pell v Board of Educ. of Union Free School Dist. No. 1 of Towns of Scarsdale & Mamaroneck, Westchester County, 34 NY2d 222, 231 [1974]; Chinese Staff & Workers Assn. v City of New York, 68 NY2d 359, 363 [1986]; Flacke v Onondaga Landfill Sys., 69 NY2d 355 [1987]). Although not a vehicle for de novo review (see Greystone Mgt. Corp. v Conciliation & Appeals Bd. of City of N.Y.,

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Bluebook (online)
21 Misc. 3d 379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-racing-assn-v-state-of-new-york-racing-wagering-board-nysupct-2008.