Vaccaro v. Joyce

154 Misc. 2d 643, 593 N.Y.S.2d 913, 1991 N.Y. Misc. LEXIS 826
New York Supreme Court·Decided October 16, 1991·Published

Opinion

OPINION OF THE COURT

Edward J. Greenfield, J.

June 12, 1989 should have been a red-letter day for Roberto [644] Vaccaro. He went to an office of the Nassau Off-Track Betting Corp. (OTB) and purchased $85 worth of pari-mutuel tickets on the daily double to be run that day at Belmont Park. His choices were the C horse, Dyna Mite Mollie, in the first race, and the F horse, Jazz City, in the second. Sure enough, Dyna Mite Mollie came through and won by AVz lengths, and when Jazz City took the lead in the second race and kept it to the finish line, Vaccaro thought he was a winner. However, the Stewards ruled otherwise, and despite this lawsuit to set aside their decision, he is still a loser.

What happened is this. Vaccaro purchased his daily double tickets a few minutes before wagering closed at 1:00 p.m. The indicated payoff for the C and F horses, based on the total pool wagered, was $76 for each $2 bet. However, after the first race and before the running of the second race, there was a malfunction in the totalizator board computer between 1:47 and 1:50 p.m.; and the Stewards announced that all wagering tickets involving the second race would be canceled, although the race would be run, and that there would be a payoff on a consolation daily double of $3.20 for every $2 bet in the double on Dyna Mite Mollie coupled with any horse which ran in the second race.

Vaccaro thus was offered $136 for his $85 of tickets on the C and F horses, instead of the $3,230 he thought he had coming. Enraged, he claims to have spent 2 Vi months investigating, researching and preparing his complaint, allegedly losing sleep, and losing time with his family and on his job. Seeking $3,230 on his daily double tickets, and $9,000 for his loss of time in preparing for the suit, he has sued the New York State Racing and Wagering Board (RWB), the New York Racing Association, Inc. (NYRA), the Nassau Regional OffTrack Betting Corporation (OTB), and defendants Joyce, Gil-man and Hamilton (the Stewards), claiming that their actions in providing only for a consolation daily double was illegal and improper.

The New York State Racing and Wagering Board has moved to dismiss the complaint for lack of subject matter jurisdiction and failure to state a cause of action, while the Nassau OTB cross-moves to dismiss the complaint as against it. Steward Joyce moves to dismiss OTB’s cross claim against him. The NYRA and Stewards Gilman and Hamilton move to change the venue of this action to Nassau County. All the motions are consolidated and considered together.

[645] The State RWB is part of the State Executive Department and exercises "general jurisdiction over all horse racing activities and all pari-mutuel betting activities, both on-track and off-track, in the state and over the corporations, associations, and persons engaged therein.” (Racing, Pari-Mutuel Wagering and Breeding Law § 101 [1]; Matter of Cramer v New York State Racing Assn., 136 AD2d 104.) It promulgates the rules for racing and betting and oversees their enforcement. It urges that as an instrumentality of the State, all claims for money damages against it must be brought only in the Court of Claims (Court of Claims Act § 9; Benz v New York State Thruway Auth., 9 NY2d 486; Graham v Stillman, 100 AD2d 893), and that as a State entity, it cannot be joined with other parties in a Supreme Court action (Siegel, NY Prac § 17 [2d ed]), so that this court lacks subject matter jurisdiction over it, and plaintiff’s complaint, and the cross claim of Nassau OTB must be dismissed as against it. While plaintiff disclaims any intention to recover a claim for monetary damages from RWB, the complaint does not seek CPLR article 78 review and alleges merely that RWB "allowed” the illegal decision of the Stewards, so no cause of action is stated in any event. While the RWB may conduct a review, if it chooses, it cannot be compelled to do so. (Matter of Capital Dist. Regional Off-Track Betting Corp. v New York State Racing & Wagering Bd., 54 NY2d 154.)

The Nassau OTB, like all off-track betting corporations, is a public benefit corporation authorized to offer and operate offtrack pari-mutuel wagering at races conducted within its region (Racing, Pari-Mutuel Wagering and Breeding Law § 502; Matter of Cramer v New York State Racing Assn., supra). It operates subject to the rules and regulations of the State board. (Matter of Capital Dist. Regional Off-Track Betting Corp. v New York State Racing & Wagering Bd., 54 NY2d 154; Seltzer v New York Racing Assn., 134 Misc 2d 1038.) Unlike the RWB, it may sue and be sued (Racing, Pari-Mutuel Wagering and Breeding Law § 503 [1]). Plaintiff purchased his daily double tickets from a Nassau OTB facility. OTB asserts that it was obliged to make payoffs on plaintiff’s wager and all others in accordance with the official posting of the results by the Stewards at the track.

It is plaintiff’s contention that all daily double bets, and the totality of the double pool, as well as the odds for each combination, became fixed before the first race was run. All betting on the daily double was closed, and since both the first [646] and second races were thereafter run, the winners declared, he argues it should make no difference that the totalizator board malfunctioned before the second race, and that all wagering on that particular race was canceled. The daily double pool being independent of any other wagering pool (Regulations for State Racing and Wagering Bd [9 NYCRR] §§ 4010.1, 4011.2), plaintiff asserts that the pool was complete, and the prices of the daily double payoffs fixed at post time of the first race, and could not be affected by any subsequent wagering on the second race, except if the race had not been run or no winner posted. Therefore, he urges, the cancellation of the daily double by the defendant Stewards was illegal, and Nassau OTB should be compelled to pay him at the posted odds.

The races conducted by NYRA are supervised by three Stewards, appointed by the RWB, the NYRA and the Jockey Club. (Racing, Pari-Mutuel Wagering and Breeding Law §212.) The Stewards exercise a supervisory function and exercise such powers as are prescribed by the New York State Racing and Wagering Board. (9 NYCRR 4022.3; Discenza v New York Racing Assn., 134 Misc 2d 3.) The Stewards have the responsibility of making all of the discretionary decisions that must be made on a day to day basis at the track.

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Vaccaro v. Joyce, 154 Misc. 2d 643, 593 N.Y.S.2d 913, 1991 N.Y. Misc. LEXIS 826 (N.Y. Super. Ct. 1991).

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