Racing Guild of Ohio, Local 304 v. Ohio State Racing Commission

503 N.E.2d 1025, 28 Ohio St. 3d 317, 28 Ohio B. 386, 1986 Ohio LEXIS 854
CourtOhio Supreme Court
DecidedDecember 26, 1986
DocketNo. 85-1768
StatusPublished
Cited by78 cases

This text of 503 N.E.2d 1025 (Racing Guild of Ohio, Local 304 v. Ohio State Racing Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Racing Guild of Ohio, Local 304 v. Ohio State Racing Commission, 503 N.E.2d 1025, 28 Ohio St. 3d 317, 28 Ohio B. 386, 1986 Ohio LEXIS 854 (Ohio 1986).

Opinions

Clifford F. Brown, J.

The main issue of this cause is whether the clerks have standing to maintain their action based upon their status as any of the following: General Fund taxpayers, contributors to a special fund, or members of the racing industry. We hold that the clerks have standing based upon their status as contributors to a special fund to pursue their action on the merits. Because we find standing based upon this status, we need not address the other standing issues. A threshold issue involves the ability of the common pleas court to obtain subject matter jurisdiction over this cause. We hold that the common pleas court correctly assumed jurisdiction over the subject matter of this action. We turn first to this jurisdictional issue.

The Court of Claims Act, enacted by the General Assembly, effective January 1, 1975, waived sovereign immunity and created a Court of Claims to have exclusive jurisdiction over suits within the contemplation of the Act. “* * * To the extent that the state has previously consented to be sued,” however, the Court of Claims Act “has no applicability.” R.C. 2743.02(A)(1). Thus, any type of action against the state which the courts entertained prior to the Act may still be maintained outside the Court of Claims.

For purposes of the Court of Claims Act, “state” is broadly defined in R.C. 2743.01(A) as follows:

“ ‘State’ means the state of Ohio, including, but not limited to, the general assembly, the supreme court, the offices of all elected state officers, and all departments, boards, offices, commissions, agencies, institutions, and other instrumentalities of the state of Ohio. ‘State’ does not include political subdivisions.” (Emphasis added.)

Thus, to the extent that any actions were permitted against state commissions, boards or agencies in a court of common pleas prior to the enact[320]*320ment of R.C. Chapter 2743, those actions may be maintained against the state in a court of common pleas subsequent to the enactment of R.C. Chapter 2743. R.C. 2743.02(A)(1).

Declaratory judgment actions were permitted against state agencies prior to the enactment of the Court of Claims Act. See, e.g., American Life & Accident Ins. Co. v. Jones (1949), 152 Ohio St. 287 [40 O.O. 326]. Thus, there is no question that the exclusive jurisdiction of the Court of Claims does not bar the courts of common pleas from obtaining subject matter jurisdiction over declaratory judgment actions against the state. Friedman v. Johnson (1985), 18 Ohio St. 3d 85, 87.

The commission contends, however, that injunctive relief may be sought against the state only in the Court of Claims. We do not agree.

Ohio jurisprudence is literally riddled with examples of actions for in-junctive relief proceeding against state departments, boards, agencies and commissions, all defined as the “state” under R.C. 2743.01(A), prior to the enactment of the Court of Claims Act. Both before 2 and after 3 the enactment of R.C. Chapter 2743, this court entertained actions originating in the courts of common pleas involving injunctive relief against the “state” as it is now defined by R.C. 2743.01(A), without dismissing those actions on that basis.

Given the definition of “state” the General Assembly chose to adopt in R.C. 2743.01(A) and the nature of the parties in the cases cited in footnotes 2 and 3, supra, it is clear that an action for injunctive relief may be brought against the state as defined in R.C. 2743.01(A) in a court of common pleas. To the extent this opinion is inconsistent with our opinion in Brownfield v. State (1980), 63 Ohio St. 2d 282 [17 O.O.3d 181], the Brownfield decision is overruled.4

[321]*321Because we find that the court of common pleas may obtain jurisdiction over the subject matter of injunctive actions against the state, we now proceed to the issue of standing.

The essence of the doctrine of standing is whether the party seeking relief has “alleged such a personal stake in the outcome of the controversy as to assure that concrete adverseness which sharpens the presentation of issues upon which the court so largely depends for illumination.” Baker v. Carr (1962), 369 U.S. 186, 204.

As the court of appeals below noted, however:

“The requirement of standing is not designed to shield agencies and officials from accountability to taxpayers; instead, it denies the use of the courts to those who, while not sustaining a legal injury, nevertheless seek to air their grievances concerning the conduct of government. The doctrine of standing directs those persons to other forums.”

We turn first to the clerks’ standing to proceed with this cause on the merits based upon their status as contributors to a special fund.

The court of appeals found the clerks’ status as contributors to a special fund insufficient as a basis for standing to proceed with this action on the merits. We disagree.

Pursuant to R.C. 3769.03, the clerks provide funding for the commission’s operation through the contribution of their license fees into the commission’s operating account of the state’s special revenue fund.

The commission contends that our decision in State, ex rel. Masterson, v. State Racing Comm. (1954), 162 Ohio St. 366 [55 O.O. 215], does not apply here because Masterson is a taxpayer-standing case, while the basis of standing asserted by the clerks involves their status as license-fee payors. Remarkably, however, the commission then demands that we apply language it quotes from the United States Supreme Court’s decision in Flast v. Cohen (1968), 392 U.S. 83, ignoring completely the fact that Flast, like Masterson, is also a taxpayer-standing case.

More specifically, however, Masterson involves the standing doctrine in relation to contributors to a special fund, regardless of whether the contributions are in the form of taxes, fees or other monies. Thus, Masterson is relevant to the standing of the clerks to bring this action based upon their status as license-fee payors.

In Masterson, this court stated in the first paragraph of the syllabus that: “* * * a taxpayer lacks legal capacity to institute an action to enjoin the expenditure of public funds unless he has some special interest therein by reason of which his own property rights are placed in jeopardy.” There is no question that the clerks are contributors to the relevant special fund. Nor is there any question that the allegedly illegal actions of the commis[322]*322sion resulted in insufficient contributions into that same special fund. This alone is enough to satisfy the Masterson requirement of a special interest in the relevant fund.

The clerks claim that the partners of a partnership licensed to participate in racing must themselves be licensed as individuals under state law and the commission rules.

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Bluebook (online)
503 N.E.2d 1025, 28 Ohio St. 3d 317, 28 Ohio B. 386, 1986 Ohio LEXIS 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/racing-guild-of-ohio-local-304-v-ohio-state-racing-commission-ohio-1986.