Majority
Headnote
1. Public Franchises—Racing Association.The defendant the Westchester Racing Association is a corporation organized under chapter 570 of the Laws of 1895, entitled “An act for the incorporation of associations for the improvement of the breed of horses, and to regulate the same: and to establish a state racing commission.” The defendant the New York Jockey Club is a corporation organized under chapter 313 of the Laws of 1891, entitled “An act to provide for the formation of corporations for improving the breed of domestic animals.” The other defendants are officers of the last-named defendant, called “stewards,” and are its governing body. The act under which the AYestchester Racing Association was organized required, inter alia, that it shall obtain from the state racing commission, also created by said act, an annual license, before it is authorized to conduct running races, which is the particular character of the racing conducted by said association. This license is required to contain the condition that all running races or race meetings conducted thereunder shall he subject to such reasonable rules and regulations as from time to time shall be prescribed by said Jockey Club. Failure by said corporation to comply with the terms and conditions of the license subjects it to the penalty of having its license re
“150. Jockeys Betting. No jockey shall bet on any race, except through the owner of and on the horse which he rides; and any jockey who shall be proved to the satisfaction of the stewards to have any interest in any race horse, or to have been engaged in any betting transaction, or to have received presents from persons other than the owner, will have his license at once revoked. Any person knowingly acting in the capacity of part owner or trainer of any horse in which a jockey possesses any interest, or making any bet with or on behalf of any jockey, or otherwise aiding or abetting in any breach of the orders of the stewards, will be ruled off.”
This is the only rule made by the stewards of the Jockey Club which has any material bearing upon the subject-matter which we are now considering. It is the rule upon which the stewards based the action which will be hereafter considered, and to which effect must be given; otherwise there exists nothing upon which to base their action. Some other rules have been referred to, but they may be dismissed from consideration, as they do not affect the authority upon which the stewards have assumed to act. It is alleged in the complaint that the plaintiff has been for many years interested in race horses; that he has purchased, sold, and owned such horses, and has for many years run them on the various race tracks in the United States, and that he still owns race horses, or interests therein, is a breeder of such horses, and is interested in improving their breed; that in order to carry on his business as a breeder, owner, purchaser, and seller of race horses, it is necessary that he should have free access to the different race tracks during the various meetings, in order that he may there observe the action of the different horses running on said tracks, and it is impossible for him to conduct his business intelligently if he is debarred from obtaining such information in this manner; that at a special meeting of the Jockey Club held on September 28, 1896, the stewards of said club adopted the following resolution:
“It has come to the knowledge of the stewards of the Jockey Club that Fred Taral, jockey, received a present of $500 during the season of 1895, in violation of the rules of racing. Owing to Taral’s universally accepted good character, he is reprimanded by the stewards, ordered to refund the money re
ceived by Mm in violation of the rules; and all jockeys are warned that the penalty for accepting presents, under rule 150, will be strictly enforced. Resolved, that Riley Grannan be warned and ruled off the turf for offering and making presents to jockeys in violation of the rules of racing'.”
On the 17th' day of October, 1896, plaintiff purchased a ticket at the ticket office of the defendant the Westchester Kacing Association, at Morris Park, in the county of Westchester, where it was then conducting a meeting for running races.' Such ticket entitled him to enter the race track and enjoy the privileges common to- the public generally. Upon presenting such ticket and demanding the right to enter upon the race track, he was denied admission, and was excluded therefrom by the Westchester Racing Association. The plaintiff by this action seeks to have the said resolution of the Jockey Club declared null and void, and to enjoin the defendant the Westchester Racing Association from enforcing the resolution, or from depriving the plaintiff of any of the privileges enjoyed by the public at the various meetings controlled by the stewards of the Jockey Club. A temporary injunction was issued, restraining the enforcement of said resolution, and, upon motion to make said injunction permanent during the pendency and trial of the action, the same was denied, and said injunction was vacated. From the order entered upon that decision the plaintiff brings this appeal.
The act under which the Westchester Racing Association is organized provides that no association shall engage in the conduct of races unless it be incorporated in pursuance of the terms of the act. It also provides that not less than five persons shall be associated together before they can become a corporation for such purpose. By its terms, also, all racing or trials of speed between horses or other-animals for any bet, stake, or reward, except such as is allowed by the act or by special laws, shall be a public nuisance. There are no existing special laws which authorize horse racing, and the only authority is this act. The condition, therefore, is that no private individual or association of individuals can engage in this business unless at least five associate themselves together and form a corporation for that purpose. It is therefore plain that it is the purpose and policy of the state to control and regulate the business of racing, and to invest the association which shall so engage therein with quasi public functions; the state exercising control and supervision by means of a commission, and in certain respects through other officers of the state. This is the clear legal effect of the provisions of the act, and is also in accordance with its spirit and intent. What circumstances will serve to impress upon private property a public interest is not at all times clear. -But, within certain well-defined lines, we may say that property is affected with a public interest, although beyond these limits the right is doubtful, and finally fades away in the imperceptible dividing line. The case, however, is clear enough, as is said by Judge Cooley, “if one is permitted to take upon himself a public employment, with special privileges, which only the state can confer upon him.” Cooley, Const. Lim. 736. And the learned author further says that property in business is affected with a public interest “where the business is one the following of which
The primary purpose and object of this act is to authorize cooperation for the purpose of improving the breed of horses, and regulate it, and for that purpose it creates the state racing commission. The right to breed domestic animals is a right inherent in every citizen, and all may engage therein, without let or hindrance, who choose so to do. The right, however, to race them after they are bred, under circumstances where they may compete for a reward, while existing, with some limitations and restrictions, at common law, and also open to all citizens who chose to engage therein, is by this statute limited. But the right itself is preserved by this act. People v. Fallon, 152 N. Y. 1 -12, 46 N. E. 302 . Consequently these associations, by virtue of this settled policy of the state, have taken upon themselves a quasi public function, and therefore the public have a right and interest therein which does not attach to a private business conducted by a corporation. This public character places these corporations, as we have seen, in the same category
The rule to be extracted from these cases is that, while the common carrier may exclude from carriage those persons whom it has reasonable apprehensions to believe will conduct themselves offensively, and annoy other passengers or prey upon them, and also to eject from carriage those who are actually guilty of conducting themselves improperly, it may not refuse carriage to those who demean themselves properly, and who give no evidence which ought reasonably to lead to the belief that they will do so, or eject from carriage any person who conducts himself properly, even 'though such persons may have a bad character, offensive to public morals, and have been guilty of offenses which exclude them from respectable society. Hutch. Carr. § 593 et seq. The right to exclude a person from carriage, in the nature of things, cannot be a continuous right. There is no presumption that a person will continue to do wrong, or that he will continue to fail in observance of reasonable regulations; and when the person presents himself, demanding his legal rights, the carrier, if it refuses to receive him, does so at the peril of establishing that its refusal was reasonable upon the facts as they existed at the time when the right to exclude was asserted. And this must be the ule even though carriage had been previously properly refused to the same individual. It is the absolute right of a carrier to refuse to receive for carriage a fugitive from justice, a person suffering from a contagious disease, or one who refuses to pay his fare, or who is drunk and disorderly. Yet, when these disabilities are removed, it would not be claimed that a carrier would be justified in refusing to transport such persons. The right exists in the state to authorize the construction and grant a franchise for the maintenance of a toll bridge or license a ferry. 'The obligation to the public created thereby requires that all persons who present themselves to pass over the bridge or cross on the ferry, upon compliance with the reasonable rules and regulations imposed by such companies, shall be permitted so to do. And undoubtedly the right exists to refuse passage to a person who entered thereon for the purpose of destroying the company’s property. If a traveler whittled the bridge while thereon, he could undoubtedly be ejected therefrom. But he could not forever thereafter be denied passage of the bridge. If he presented himself free of the instrument with which to whittle, or dispossessed of a desire so to do, he could not be denied his legal right to cross because he had once defaced the bridge. Otherwise he might never be able to travel in that direction. Certainly he could not exercise the right which the law secures to him. In all of these cases the authority exists upon the part of the company to protect itself against present or threatened harm. It has power presently to deny the right to a person threatening improper conduct, or to eject from the premises one ■conducting himself improperly. But no right exists to make such refusal permanent, and to debar forever from a public privilege a person whose only offense is that it was proper once so to do. The ■situation is in no sense changed when applied to the present defend
There is, however, another conclusive answer to the contention of the defendants. By the provisions of chapter 1042, Laws 1895, it is provided that all persons within the jurisdiction of the state shall be entitled to full and equal privileges in all places of public amusement, subject only to the conditions and limitations established by law, and applicable alike to all citizens. It is plain that the racing of horses is in the nature of an amusement. As we have seen, the property and place where such races are conducted have become clothed with a public interest, and the association, by reason of its franchise from the state, is under the public obligation to conduct its business for the benefit of the public, in pursuance of the obligation thereby created to fulfill the purpose of its existence. This implies that its gates shall be open to all citizens, and its property subject to use by all who desire to go thereon, and who comply with its reasonable rules and regulations. The first section of the civil rights act is absolute in its declaration of right, and is not qualified by anything contained in its subsequent sections. Its declaration is that all persons shall be entitled to the privilege, subject only to the conditions and limitations established by law. The second section provides a penalty for denial of any of the provisions of the first section. It docs not aim, in any respect, to qualify the declaration contained in the first section. By the law of the land, as we have seen, it is the absolute right of any citizen who conducts himself properly, and who complies with the reasonable rules of the public corporation, to enjoy the benefits secured to him thereby; and it is beyond the power of such an association to provide by any rule for the permanent exclusion of any citizen from such place, or exclude him from participation in its benefits. The argument of the learned counsel for the defendants, that the corporation has the right to exclude by a rule which operates upon all citizens alike, cannot be
A consideration of the record in this case develops some extraordinary features, which it is proper that we should consider. The act under which the racing association obtains its franchise, in explicit terms, prohibits betting. Indeed, upon this subject the rigorous provisions of section 351 of the Penal Code apply. By section 11 of the act we are considering, the trustees are exempted from the operation of chapter 9 of title 10 of the Penal Code, relating to gaming, or of the provisions of any penal statute not contained in said chapter, if they comply with section 9 of the act, by posting in a conspicuous place printed notices or placards, in large and legible type, to the effect that all disorderly conduct, poolselling, bookmaking, or other kind of gambling is prohibited, and also containing a copy of section 351 of the Penal Code, and also if they comply with section 10, which requires the appointment of not less than 5 policemen for the purpose we have heretofore noted. But such exemption does not obtain if such poolselling, bookmaking, or other gambling shall be knowingly permitted by the trustees or directors. Bearing these provisions in mind, we turn to rule 150, upon which the action of the stewards is based in excluding plaintiff from the privileges of the race track, and we discover that it relates to “jockeys betting,” is so headed, and in terms provides for certain conditions when he may bet, which are that he must do it through the owner of, and upon, the horse which he rides. All other bets by him are prohibited. He is made liable to forfeit his license if he bets otherwise. The singular anomaly is therefore presented of the governing body of this racing corporation, acting under a statute which prohibits betting and other forms of gambling upon the tracks of the association within its jurisdiction, deliberately making a rule regulating a practice which the law makes a felony if carried on or knowingly permitted by the association upon whose track the jockey rides. But this is not all. In the affidavit of Mr. Keene, one of the stewards of the Jockey Club, and who took part in the proceedings
“That the plaintiff * * * has been a frequenter of race courses for a-number of years past, and has made a practice of betting heavily upon the races. The amount of the sums wagered by him, and the publicity attending, the making of the bets, has become a matter of public comment, and has created for him quite a wide notoriety as a ‘plunger.’ The methods employed by the plaintiff have upon more than one occasion come to the notice of the Jockey Club, and during the month of-, 1S9G, the matter having again come totiie attention of the Jockey Club, * * * deponent was deputed to look into, tiie matter and endeavor to effect a change in Mr. Grannan’s practices. * * * Deponent made inquiries as to the methods employed by Mr. Grannan, and. ascertained that by reason of tiie amounts wagered by the plaintiff, and the publicity apparently courted, and certainly obtained, by him, and by reason of" other circumstances, it was very desirable that the plaintiff should make a radical change in his betting methods. * * * Deponent therefore communicated with the plaintiff, * * * sending a request that the betting methods-employed by him be modified, and the plaintiff * * * ceased to- attend the races. * * * After about a month’s absence, deponent was informed that tiie plaintiff liad returned and resumed his former methods of betting upon, the races, whereupon deponent sent to plaintiff a request to change his methods, but to this request no attention was paid by the plaintiff.”
It is therefore quite apparent, both from the rule and this frank, statement, that the practical sum of plaintiff’s offending was that he bet too heavily, and refused to change or modify his methods of. betting. We have made this reference to the rule and the evidence-for two purposes: First. To show that such rule is without force and is utterly void. Its purpose is plain. It was intended to and had the effect of regulating an offense against the law, and, if the means were provided or were knowingly permitted by the association for such purpose, its officers would be guilty of a felony. It provided for a matter which it was the duty of the Jockey Club and the-association to suppress. It was what the association was commanded to do by the terms of its franchise. Second. The quoted evidence-shows that the fact that plaintiff bet was a matter of widespread public notoriety; and not alone that, but that this violation of law came-lo the knowledge of the governing body of the association. What was its duty? Where were the five policemen for which the act stipulated? How long would it take for them to eject the offender from the place of his offending, or to arrest and convey him to the nearest magistrate, as the act required, to answer for offended law? Why was it necessary to make an offense of giving a present to the-jockey, when the policemen could place the offender beyond the-possibility of offense in this respect, if committed while upon the track, and at the same time wipe out the inducing cause, and might-possibly prevent his getting $500 bills, through unlawful practices, to give to jockeys. The record does not leave in doubt the fact that if this association and its governing body apply itself diligently to the suppression of the unlawful practice of gambling upon its race track and others within its jurisdiction, instead of unlawfully providing rules for its regulation by persons subject to its entire control, it is quite probable that the “turf’ will attain, in some degree, at least, that purity for which the stewards seem so earnestly soíicit-
Finally, we come to a consideration of the question of right in the plaintiff to equitable relief for the infringement of his rights. It is a settled principle of equitable jurisprudence that equitable relief can be granted where there is inadequacy, incompleteness, or insufficiency of legal remedy applicable to the case in hand. The legal remedy which the party in this case has the ability to invoke is to recover a penalty under the civil rights act, or to bring a common-law action for damages. ¡Neither of these remedies has force or effect upon the rule which has been adopted, by which he is excluded from this race track, and a court would be helpless in such case to grant any relief against it. The plaintiff has a substantial, personal right, coupled in a sense with a property interest, to be allowed to •enter upon the premises of the racing association. The right is common to- all citizens. The particular interest of the plaintiff is that he is engaged in the breeding of horses, and that such business is promoted by observation of what transpires fin the business conducted by the Westchester Association. The primary purpose of authorizing the business of the association, as expressed in the title of the act creating it, is to improve the breed of horses. The plaintiff, in the business alleged in the complaint to be carried on by him, is entitled to avail himself of such means of information as will aid him in the business which it is the design of the association to promote. So long as this rule is operative, he may not avail himself of his privileges for any purpose, and no action at law will avail to aid him in this respect. We think, therefore, owing to the peculiar conditions surrounding the case, that equity will intervene to grant relief and obliterate the unlawful obstruction.
It follows from these views that the order appealed from should be reversed, with $10 costs and disbursements, and the motion to , continue the injunction granted, with $10 costs, to abide the event of the action. All concur.
Cases cited
- People v. Budd 117 N. Y. 1 at 22 p. 793
- People v. King 110 N. Y. 418 p. 793
- People ex rel. Sturgis v. Fallon 152 N. Y. 1 p. 793
- Milliman v. New York Central & Hudson River Railroad 66 N. Y. 642 p. 795
- Putnam v. Broadway & Seventh Avenue Railroad 55 N. Y. 108 p. 795