SOUTHERN BT & T. CO. v. Nineteen Hundred One C. Corp.

83 So. 2d 865
CourtSupreme Court of Florida
DecidedNovember 2, 1955
StatusPublished
Cited by2 cases

This text of 83 So. 2d 865 (SOUTHERN BT & T. CO. v. Nineteen Hundred One C. Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SOUTHERN BT & T. CO. v. Nineteen Hundred One C. Corp., 83 So. 2d 865 (Fla. 1955).

Opinion

83 So.2d 865 (1955)

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY, Joe H. Adams, as Florida State Hotel Commissioner, and Richard W. Ervin, as Attorney General of the State of Florida, Appellants,
v.
NINETEEN HUNDRED ONE COLLINS CORPORATION, a Florida corporation, Appellee.

Supreme Court of Florida. En Banc.

November 2, 1955.
Rehearing Denied January 6, 1956.

*866 Richard W. Ervin, Atty. Gen., George E. Owen and John C. Reed, Asst. Attys. Gen., for appellants.

Walton, Lantaff, Schroeder, Atkins, Carson & Wahl, Miami, E.W. Smith, John A. Boykin, Jr., and Graham W. George, Atlanta, Ga., for Southern Bell Tel. & Tel. Co.

Burnett Roth, Miami Beach, for appellee.

THORNAL, Justice.

The appellants here were defendants in the Circuit Court in a chancery proceeding instituted by the appellee seeking an injunction against the enforcement of Chapter 365, Florida Statutes 1953, F.S.A., and Section 561.291, Florida Statutes, F.S.A. From a decree of the Chancellor declaring the cited statutes to be unconstitutional, this appeal was perfected.

Chapter 365, F.S., F.S.A., is the so-called "anti-bookie law" aimed at the control of bookmaking and other illegal gambling through the use of telephone, telegraph and other wire services. Section 561.291, F.S., F.S.A., is an act of the 1951 Legislature authorizing the revocation of a beverage or hotel license upon the removal or termination of communication facilities when the same have been used for illegal gambling. In the instant case the Attorney General of Florida on March 12, 1954, notified appellant, *867 Southern Bell Telephone and Telegraph Company, that the "customary telephone service" furnished by it to the Shore Club Hotel, operated by appellee, was being "used in violation of the laws of Florida, particularly the gambling laws". Thereupon the telephone company advised the hotel that it would terminate its customary telephone service on March 17, 1954, as required by Chapter 365, supra.

Before the telephone service was actually terminated, the appellee corporation instituted this proceeding by a complaint in equity seeking a temporary injunction and ultimately a permanent injunction against discontinuance of its customary telephone service. The complaint, with various amendments, alleged that telephones were not being used in violation of the gambling laws; that the appellee operated the hotel under a 99-year lease which was a valuable property right; that a hotel could not remain in operation without customary telephone service; that if its telephone service were terminated, its license to operate a hotel would be canceled under Section 561.291, supra; that there was a provision in the lease for cancellation thereof by the lessor in the event that any unlawful business should be operated on the premises; and that the lessee was then preparing to borrow money to finance extensive improvements in the hotel facilities and that such financing would be prevented by the termination of its telephone service. The proposed action of the telephone company was attacked on the basic ground that the telephones were not being illegally used and on the further grounds that Chapter 365, supra, violates the due process requirements of Sections 1 and 12 of the Declaration of Rights of the Florida Constitution, F.S.A., and the equal protection requirements of Amendment XIV to the Constitution of the United States in that it discriminates between "private wire services" and "customary telephone service" as to the procedure for revoking same; that the same organic provisions are violated by both Chapter 365, supra, and Section 561.291, supra, because of alleged lack of an opportunity to be heard before cancelling the telephone service or revoking the hotel license; that the title to Chapter 26820, Laws of Florida 1951, is defective in violation of Section 16, Article III, Florida Constitution, and that Chapter 365, supra, is a bill of attainder violative of both State and Federal Constitutions.

By the final decree the Chancellor concluded that Chapter 365, supra, and Section 561.291, supra, as applied to customary telephone subscribers such as the appellee violate Section 12 of the Declaration of Rights of the Florida Constitution and the Fourteenth Amendment to the Constitution of the United States because of the alleged lack of a hearing and were, therefore, invalid. The Chancellor did not pass upon the question of whether the telephones were actually being used for gambling purposes.

A permanent injunction was entered against the telephone company and the Attorney General enjoining any action "against customary telephone subscribers such as plaintiff" under Chapter 365, supra, and enjoining permanently the Florida State Hotel Commission from taking any action "against customary telephone subscribers such as plaintiff" under Section 561.291, supra.

This appeal presents the question of the correctness of the ruling of the Chancellor in holding the cited statutes to be contrary to the cited organic provisions of the State and Federal Constitutions.

After a very careful consideration of able briefs filed by the respective parties, we have concluded that the acts under attack are constitutional and that the Chancellor committed error in holding to the contrary.

Chapter 365, F.S., F.S.A. was originally enacted as Chapter 25016, Laws of Florida 1949. As so passed, this act applied in a limited sense to so-called "private wire service". By Chapter 26820, Laws of Florida 1951, the original act was amended in order to regulate so-called "customary telephone service". By Section 15 of the original act it is specifically provided that "This chapter shall be deemed an exercise of the police power of the State of Florida *868 for the protection of the public welfare, health, peace, safety and morals of the people of the State of Florida, and all of the provisions of this chapter shall be liberally construed for the accomplishment of this purpose". An identical provision is included in Section 561.291, supra, which was enacted in 1951 as Chapter 26773.

It is perfectly obvious from an examination of these statutes and their legislative history that they were leveled at the control and ultimate elimination of illegal gambling commonly known as bookmaking. By the passage of the acts, the Legislature necessarily determined that such illicit gambling constituted a vice which justified the exercise of the State's sovereign police power in the interest of the public welfare. An incidental consideration which this Court can judicially recognize is the fact that a substantial source of state income is pari-mutuel betting legitimately conducted at horse and dog race tracks and jai alai frontons. The conduct of bookmaking operations which these acts are intended to control constitute an ever-present encroachment upon this legitimate source of state revenues for the reason that the bets illicitly placed with the bookmaker do not pass through the pari-mutuel machine and the State is thereby deprived of its proper share of the revenues to be derived from pari-mutuel betting. The acts therefore constitute an exercise of the police power to protect the public against the vices of illicit gambling and to establish a safeguard around the public treasury.

Because of the fact that a decision on the constitutionality of the statutes under attack could have far-reaching public results, it appears appropriate to review in summary the several cases which have been before this Court involving these statutes.

In McInerney v. Ervin, Fla.

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Related

Merrill v. State
228 So. 2d 305 (District Court of Appeal of Florida, 1969)
Olcott v. Southern Bell Tel. & Tel. Co.
31 Fla. Supp. 82 (Duval County Circuit Court, 1968)

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Bluebook (online)
83 So. 2d 865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-bt-t-co-v-nineteen-hundred-one-c-corp-fla-1955.