State ex rel. Palm Beach Jockey Club v. Florida State Racing Com'n

• Decision Date: 10 December 1946
• Citation: 158 Fla. 335,28 So.2d 330
• Court: Florida Supreme Court
• Parties: STATE ex rel. PALM BEACH JOCKEY CLUB, Inc., v. FLORIDA STATE RACING COMMISSION et al.

28 So.2d 330

158 Fla. 335

STATE ex rel. PALM BEACH JOCKEY CLUB, Inc., v. FLORIDA STATE RACING COMMISSION et al.

Florida Supreme Court

December 10, 1946

Paty, Warwick & Paul and B. F. Paty, all of West Palm Beach, for relator.

William B Watson, Jr., of Gainesville, and C. E. Ware, of Clearwater for respondents.

CHAPMAN, Chief Justice.

This is a case of original jurisdiction. The relator, Palm Beach Jockey Club Inc., a Florida corporation, by petition represented to this Court that it had applied to the Florida State Racing Commission for a conditional permit to conduct harness horse racing in Palm Beach County; and that a deposit of $2500 to cover the expenses of an election on said permit had been made with the proper officials of said County in conformity with Subsection 6 of Section 550.02, Fla.Stats.1941, F.S.A. The original application was amended, and as amended complied with and conformed to the several divisions (a), (b), (c), (d), (e), (f) and (g) of Subsection (5) of Section 550.02, F.S.A., 1943 and rules 12, 13 and 14 of the rules of the Commission adopted March 16 1945. That the respondent, Florida State Racing Commission, did arbitrarily and contrary to law decline and refuse to issue said conditional permit.

Attached to the petition, and by appropriate language made a part thereof, are certain exhibits relied upon to establish an arbitrary and unlawful ruling on the part of the State Racing Commission, which is challenged in this mandamus proceeding.

Division (a) of Subsection (5) of Section 550.02, Fla.Stats.1941, F.S.A., requires that an application for a permit shall (a) set out the full name of the person, association or corporation, and if a corporation, the name of the State under which it is incorporated. The relator's application discloses that the applicant (Palm Beach Jockey Club, Inc.) is a corporation organized, existing and incorporated under the laws of Florida.

(b) If an association or corporation, the nationality, color and residence of the members of the association and the names of the stockholders and directors of the corporation. The stockholders as given in the application are, viz.; Frank J. Hale, of New York City; B. F. Paty, West Palm Beach, Florida, and C. H. Warwick, Jr., of West Palm Beach, Florida. The directors are Frank J. Hale, B. F. Paty, and C. H. Warwick, Jr.

(c) The exact location where it is desired to conduct or hold a racing meet. The application describes the 200 acre tract of land to be used as a track as located in Section 29, Township 43, South, Range 43, East, situated between designated public roads and lying partly within the city limits of West Palm Beach and partly without the city limits of said city.

(d) Whether or not the racing plant is owned or leased, or, if a corporation, the names, places of residence of the directors and stockholders of the corporation. The application discloses that the land where the race meeting is to be held is now owned by the Palm Beach Jockey Club, Inc. The directors are Frank J. Hale, 122 East 42nd Street, New York, N. Y.; B. F. Paty, West Palm Beach, Florida; C. H. Warwick, Jr., West Palm Beach, Florida. The stockholders are Erank J. Hale, B. F. Paty and C. H. Warwick, Jr.

(e) A statement of the assets and liabilities of the person (Palm Beach Jockey Club, Inc.) making such application. The application discloses as of June 28, 1946, viz.:

Cash in bank ................... $ 4,000.00

Real estate (appraised value) .. 60,000.00

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Total ....................... $64,000.00

Liabilities .................... None

Capital stock .................. $30,000.00

Capital surplus ................ 34,000.00

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Assets or net worth of the

applicant corporation ........ $64,000.00

(f) The kind of racing to be conducted and the desired period. The application of the Palm Beach Jockey Club, Inc., filed with the Racing Commission discloses that the kind of racing desired or to be conducted was 'harness horse racing', and the allotment of time requested of the Racing Commission annually was fixed at 45 days.

(g) Such other information as the Racing Commission may desire. The record discloses that an amendment of the original application then on file with the State Racing Commission was made and additional information supplied by the Palm Beach Jockey Club, Inc.

Rule 12 of the State Racing Commission adopted March 16, 1954, provides that in order to assist in passing on the merits of applicants for permits each applicant shall submit a statement as to the qualifications of the applicant to conduct racing at a track and shall clearly show, viz.: (a) applicant has in his employ a person with at least five years' experience in organized racing; (b) three affidavits of qualified and experienced individuals to the effect that the proposed plans and specifications of the racing plant are adequant and proper; (c) plans or methods of financing the cost of construction of the racing plant; (d) preliminary sketches or plans of the proposed construction, disclosing seating capacity, accommodations for horses and dogs and an estimated cost of the racing plant; (e) liquid capital available to pay the costs of construction; (f) opinions of qualified persons to the effect that the track when completed and in operation will be sound financially.

Rule 13 provides for an appraisal of all items of real estate, personal property. promissory notes and all assets of the applicant. The Racing Commission reserved the right and privilege, after the proposed appraisal, to determine whether or not the applicant was financially able to conduct a race track.

Rule 14 provides that the applicant shall establish that outstanding stock or shares issued by the applicant corporation are fully paid for prior to applying to the Commission for a racing permit; that no part of the assets shall include promissory notes or other evidence of indebtedness which in any manner may be conditioned upon the action of the Racing Commission granting the permit, etc., or the result of the election whereby a ratification of the permit is sought.

The applicant filed with the Racing Commission under oath an amendment to its original application and attached thereto were many exhibits (See Tr. pp. 21-47) apparently designed to supply the information desired by the Commission and requested by it under division (g) of Subsection (5) of Section 550.02, Fla.Stats.1943, F.S.A., and Rules 12, 13 and 14 adopted by the Racing Commission March 16, 1945.

The amendment and exhibits attached disclose, in part, that (1) the officers and directors of the Palm Beach Jockey Club, Inc., are white citizens of the United States and of good moral character; (2) that the services of F. Alden Gray, an executive in harness racing, had been engaged by the applicant, along with the services of other experienced in racing viz.: Walter McGriff and H. M. Gibson; (3) commitments in writing to patronize the proposed track had been obtained from some 53 trainers, owners and drivers then patronizing the Roosevelt Raceway at Westburg, Long Island; (4) that a commitment in writing from Frank J. Hale was obtained to supply the applicant with $350,000.00 to be used in constructing buildings, making improvements, purchasing personal property, and other expenditures necessary to the operation of the track; (5) a financial statement of Frank J. Hale appears in the record to the effect that his assets, above liabilities, are more than a million dollars: (6) preliminary plans for the construction of the track reflect an estimated cost ranging between $250,000 and $300,000; (3) seating capacity of the grandstand was fixed at 3500 and to be constructed of reinforced concrete; (6) club house, capacity fixed at 500, connected by a bridge from the grandstand constructed of reinforced concrete; (c) paddock located near the club house with a minimum of fifty stalls; (d) show ring to be constructed immediately in front of the paddock; (e) racing Secretary's office to be placed in a wing of the paddock; (f) chart-making office to be situated near the racing Secretary's office; (g) an office for the Racing Commission is contemplated; (h) saliva test stalls are to be constructed; (i) an 80 foot ramp constructed of concrete is contemplated; (j) one-half mile track of standard formula at least 100 feet wide; (k) adequate stables; (1) administration offices; (m) maintenance buildings; (n) Judges' stand.

[158 Fla. 340] Paragraph 7 of the amendment refers to affidavits submitted to the Racing Commission as requested by it under the subject of further information. These affidavits are made by purported racing experts--the opinions expressed are to the general effect that the plans and specifications for the construction of the racing plant are adequate and that successful racing can be conducted at the plant when completed.

Paragraph 8 of the amendment refers to a detailed financial statement certified to by a public accountant of the property holdings of Frank J. Hale, who by the record appears now to own 300 shares of the Palm Beach Jockey Club, Inc. Additional information appears in the record not pertinent to a decision of this controversy.

On the petition of the relator this Court issued an alternative writ of mandamus, and the respondent, Florida Racing Commission, simultaneously filed a motion to quash and an answer thereto. Counsel of record, by stipulation, amended the alternative writ but agreed that the motion to quash and the answer would for all purposes of this litigation stand and be considered as addressed to the alternative writ as amended according to the stipulation of counsel.

Pertinent grounds of the respondent's motion to quash the alternative writ as amended are, viz.:...