714 A.2d 299 (N.J. 1998), Campione v. Adamar of New Jersey, Inc.

Citation:714 A.2d 299, 155 N.J. 245
Opinion Judge:[8] The opinion of the court was delivered by: Pollock, J.
Party Name:Anthony John CAMPIONE, Plaintiff-Appellant, and New Jersey Casino Control Commission and State of New Jersey, Department of Law and Public Safety, Division of Gaming Enforcement, Intervenors-appellants, v. ADAMAR OF NEW JERSEY, INC., t/a Tropworld Casino and Entertainment Resort, Pat Scully and Michael Imperatrice, Defendants-respondents, and Willi
Attorney:[6] John R. Zimmerman, General Counsel, argued the cause for intervenor-appellant New Jersey Casino Control Commission (Mr. Zimmerman, attorney; Mary Wozniak, Senior Counsel, of counsel and on the briefs). Charles F. Kimmel, Deputy Attorney General, argued the cause for intervenor-appellant Divis...
Case Date:July 22, 1998
Court:Supreme Court of New Jersey
 
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Page 299

714 A.2d 299 (N.J. 1998)

155 N.J. 245

Anthony John CAMPIONE, Plaintiff-Appellant,

and

New Jersey Casino Control Commission and State of New

Jersey, Department of Law and Public Safety,

Division of Gaming Enforcement,

Intervenors-appellants,

v.

ADAMAR OF NEW JERSEY, INC., t/a Tropworld Casino and

Entertainment Resort, Pat Scully and Michael

Imperatrice, Defendants-respondents,

and

William Phiel, Ethel Guys, and John Does # 1-# 15,

fictitious persons whose identities are unknown at

the present time, Defendants.

Supreme Court of New Jersey.

July 22, 1998

Argued March 16, 1998.

Page 300

[155 N.J. 248] John R. Zimmerman, General Counsel, for intervenor-appellant New Jersey Casino Control Commission (Mr. Zimmerman, attorney; Mary Wozniak, Senior Counsel, of counsel and on the briefs).

Charles F. Kimmel, Deputy Attorney General, for intervenor-appellant Division of Gaming Enforcement (Peter Verniero, Attorney General of New Jersey, attorney; Mr. Kimmel, Frank Catania and Thomas N. Auriemma, Assistant Attorneys General, of counsel).

F. Michael Daily, Jr., Merchantville, for plaintiff-appellant Anthony John Campione (Quinlan, Dunne & Daily, attorneys).

John J. Barry for defendants-respondents (Barry & McMoran, Newark, and Hankin, Sandson & Sandman, Atlantic City, attorneys; Mr. Barry, Adam N. Saravay and Tal S. Benschar, Newark, on the briefs).

Peter G. Sheridan, Morristown, submitted a letter in lieu of brief on behalf of amicus curiae, Casino Association of New Jersey (Graham, Curtin & Sheridan, attorneys).

The opinion of the Court was delivered by

POLLOCK, J.

This appeal presents several issues. The first is whether the Casino Control Commission (CCC) has exclusive jurisdiction over claims by patrons against casinos for discrimination and breach of contract. A related issue is whether patrons may maintain such claims as common-law causes of action. The final issue questions the award of damages of $1,000,213.50 for malicious prosecution in favor of plaintiff Anthony Campione.

Campione was a blackjack player and professional card counter who frequented casinos in Atlantic City. The defendants are Adamar of New Jersey, which operates the TropWorld Casino; Michael Imperatrice, a floor supervisor and a member of TropWorld's card counting team; and Patrick Scully, TropWorld's Sergeant of Security. [155 N.J. 249]

On February 14, 1991, plaintiff sued defendants for discrimination, breach of contract, and malicious prosecution. He alleged that defendants selectively enforced gaming regulations against him because he was a card counter. The jury found that defendants were liable for discrimination and malicious prosecution and returned a verdict totaling $1,519,873.43.

The Appellate Division reversed and remanded the matter to the Law Division. 302 N.J.Super. 99, 694 A.2d 1045 (App.Div.1997).

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It found that the CCC had exclusive jurisdiction over plaintiff's claims and that plaintiff could not maintain a private cause of action against defendants. The court also reversed the malicious prosecution award.

We granted plaintiff's petition for certification. 152 N.J. 9, 702 A.2d 348 (1997). We granted motions of the Casino Control Commission and the Division of Gaming Enforcement (DGE) to intervene and the CCC's petition for certification. 152 N.J. 9, 702 A.2d 348 (1997). The petition for certification of Doug Grant, Inc., which conducts a school to train card counters, was denied. 151 N.J. 472, 700 A.2d 883 (1997). We now modify the judgment of the Appellate Division and remand the matter to the Law Division.

I.

The purpose of blackjack is to obtain cards having a higher count than those of the dealer without exceeding a total count of twenty-one. In blackjack, unlike in other games of chance, players' skill can increase the odds in their favor. Card counting is a method of playing blackjack that involves keeping track of the number of "high value" cards. This technique allows a blackjack player to identify a favorable count, which occurs when an unusually high percentage of the cards remaining in the "dealing shoe" are high value cards. At that time, the chances increase that the dealer will "bust," or deal cards that exceed 21 points, thereby permitting the card counter to win. A favorable count occurs infrequently, and almost exclusively after most of the cards have been dealt. Consequently, card counters must maximize their [155 N.J. 250] play at such times. To do so, card counters may increase their bet, play two hands at once, or both.

Neither the Casino Control Act, N.J.S.A. 5:12-1 to -142(Act), nor the CCC prohibits card counting. The CCC, however, authorizes casinos to use various "countermeasures" to discourage card counting. For example, CCC regulations give casinos the discretion to shuffle the cards at will, N.J.A.C. 19:47-2.5a, or to lower the betting limit at any time, N.J.A.C. 19:47-8.3c. In addition to issuing its own regulations, the CCC allows, subject to its approval, casinos to adopt "Section 99 internal controls." N.J.S.A. 5:12-99.

To identify card counters, TropWorld employed a "Card Counting Team." After identifying plaintiff as a card counter, TropWorld's team applied countermeasures against him. Although TropWorld admitted to treating card counters differently from other patrons, it asserted that the treatment complied with CCC regulations and its Section 99 internal controls.

Because of the countermeasures applied by TropWorld and other Atlantic City casinos, plaintiff filed a number of "patron complaints" with the CCC. He particularly objected to the casinos' lowering his betting limit and limiting him to one hand, while simultaneously allowing other players to exceed the betting limit and play two hands. In response, the CCC informed plaintiff either that it needed to investigate the matter or that his complaint "does not indicate any violation of the Casino Control Act or pertinent regulations." Additionally, the CCC regularly informed plaintiff that the "Commission does not conduct hearings on individual patron complaints." For example, in an October 17, 1989, letter responding to plaintiff's complaint against Bally's Park Place Hotel Casino, the CCC stated:

The [patron complaint] process is not designed to provide patrons with a forum for redress against casinos. The Commission is without authority to compel Casino Licensees to pay money damages to patrons, even in instances where a violation [of the Act and/or its regulations] has occurred. That authority rests with the Courts of the State of New Jersey. [155 N.J. 251]

With the exception of the present case, plaintiff never proceeded further with the CCC or sought to appeal the CCC's disposition of his complaints.

Plaintiff's action against TropWorld arises from two incidents. According to plaintiff, on April 27, 1989, TropWorld allowed other blackjack players, but not him, to play two hands during one deal. When plaintiff put his chips in the betting circle, the casino floor person instructed the dealer to deal past

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plaintiff. As a result, plaintiff filed a patron complaint with the CCC. By letter dated May 15, 1989, the CCC informed plaintiff that TropWorld's actions did not constitute a violation of the Act or the regulations. The CCC also explained:

Be advised that the Commission does not conduct hearings on individual patron complaints. Rather, efforts are made to resolve such matters informally where possible. In addition, all patron complaints are reconsidered in connection with the annual renewal of each casino's license to determine whether it is providing the type of entertainment and services envisioned by the Legislature when it adopted the Casino Control Act.

The second incident took place on November 10, 1989, when plaintiff was playing blackjack at a TropWorld table with a minimum bet of $25 and a maximum bet of $1000. When the card count became favorable, plaintiff placed several unsuccessful bets of $300 and $350. The parties disagree over the ensuing facts.

According to plaintiff, after he placed a $350 bet, Imperatrice placed a sign on the table lowering the betting limit to $100. Imperatrice, however, maintained that plaintiff's initial bet was not in the betting circle before he lowered the limit. Otherwise, according to Imperatrice, he would have honored the bet.

Imperatrice informed plaintiff that he could not bet more than $100. According to plaintiff, Imperatrice then told the other player at the table that he could wager up to $1000. Without responding, that player left the table.

When Imperatrice pushed plaintiff's $350 bet out of the circle, plaintiff pushed it back. Plaintiff testified that Imperatrice then instructed the dealer to deal, but to pay plaintiff, if he won, based on a $100 bet. The dealer dealt a hand that qualified for a [155 N.J. 252] "double down," which entitled plaintiff to double his bet. N.J.A.C. 19:47-2.10. Plaintiff then placed another $350 in the betting circle and won. Imperatrice instructed the dealer to pay plaintiff $200--for an initial $100 bet and a $100 "double down" bet. Plaintiff claimed that he was entitled to $700--for the initial $350 bet and the $350 "double down" bet.

Plaintiff stated that he then placed his hand on top of the cards, pulled the cards toward him, and advised the dealer that she had not paid him the proper amount of money. Although plaintiff knew he was not permitted to touch the cards, N.J.A.C. 19:47-2.6n, he wanted to preserve the cards as evidence. According to Imperatrice, however, plaintiff grabbed the cards. When Imperatrice informed plaintiff that he had been paid the proper amount, plaintiff asked to see a CCC representative. Imperatrice told plaintiff that to...

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