SYLVIA H. RAMBO, District Judge.
Presently before the court are two motions: (1) Defendants' Motion to Vacate August 22, 2012 Order Granting Preliminary Injunction (Doc. 27); and (2) Plaintiff's Motion to Overturn the Ejection of Tito Moreno Because 58 Pa.Code § 165.231 is Unconstitutional (Doc. 30). Both motions stem from this court's granting of Plaintiff's motion for a preliminary injunction (Doc. 20) wherein Plaintiff, a licensed horse trainer, argued at a hearing before this court that his constitutional rights to due process were violated as a result of sanctions issued against him without a hearing before the Pennsylvania State Racing Commission (the "Commission"). For the following reasons, Defendants' motion will be denied and Plaintiff's motion will be granted.
The underlying facts of this case are discussed more fully in this court's August 22, 2012 memorandum and order granting Plaintiff's request for a preliminary injunction (Doc. 20; Moreno v. Penn Nat'l Gaming, Inc., 2012 WL 3637316, 2012 U.S. Dist. LEXIS 118551 (M.D.Pa. Aug. 22, 2012).) For present purposes, it is sufficient to state the following as background.
On August 1, 2012, two inspectors of the Pennsylvania State Racing Commission ("state inspectors") witnessed Moreno and his son exit a stall in Barn 4 at Penn National with two syringes and an injectable bottle of Catosal. Pennsylvania state racing regulations provide that it is illegal to possess injection equipment on the track grounds. See 58 Pa.Code § 163.302(3). Defendant Mark Loewe, Vice President of Racing at Penn National, was informed of the incident by David Bailey, Racing Secretary. Loewe scheduled a meeting with Moreno on August 3, 2012, to discuss the incident and the actions that would be taken in response to the alleged violations. Following a meeting between Loewe and Plaintiff's counsel, Alan Pincus, Loewe acquiesced to Pincus's request to issue a series of sanctions against Moreno in lieu of a formal ejection. On August 3, 2012, Loewe issued the following sanctions ("August 3 Sanctions"):
On August 4, 2012, Moreno appealed the sanctions. Moreno argued that the sanctions amounted to an "ejection" or at least a "constructive ejection" thus entitling him to a hearing under the state horse racing regulations. The Commission did not grant Moreno's request for an appeal, asserting that because Moreno was not formally ejected, he was not entitled to a hearing under the regulations.
In light of the Commission's refusal to grant Plaintiff's request for an appeal, Plaintiff filed a complaint in this court requesting a temporary restraining order and preliminary injunction. (Doc. 1.) Plaintiff argued that the severity of the August 3 Sanctions rendered those sanctions tantamount to an ejection and Defendants' failure to provide a hearing under 58 Pa.Code § 165.231 violated his rights to due process. On August 10, 2012, this court granted Plaintiff's request for a temporary restraining order and preliminary injunction. (Doc. 6.) The court also scheduled a hearing on the preliminary injunction for August 16, 2012. On August 14, 2012, Mountainview and the Turf Club formally ejected Moreno from Penn National facilities ("August 14 Ejection"). Following the August 16, 2012 hearing, this court issued a memorandum and order granting Plaintiff's motion for a preliminary injunction. (Doc. 20.) In that memorandum, the court first rejected Defendants' jurisdictional argument, finding sufficient evidence of state action to support a Section 1983 claim.
On August 28, 2012, a hearing was held before Hearing Officer Ruth D. Dunnewold ("August 28 Hearing"). The hearing, however, addressed both the August 14 Ejection of Moreno and Penn National's August 3 Sanctions against Moreno.
Defendants move to vacate the court's August 22, 2012, order granting a preliminary injunction because circumstances have changed thus eviscerating the justification for the injunction. Specifically, Defendants argue that because Plaintiff has now had a hearing that addressed both the August 3 Sanctions and the August 14 Ejection, the court's procedural due process concerns which formed the basis of the injunction are now moot.
Plaintiff counters with two arguments. First, Plaintiff argues that the court must find 58 Pa.Code § 165.231 unconstitutional and that the injunction should not be vacated until such a ruling is made. This argument forms the basis of Plaintiff's Motion to Declare 58 Pa.Code § 165.231 Unconstitutional, which was filed simultaneously with Plaintiff's response to Defendants' motion, and will be discussed further below. Plaintiff's second argument is, in essence, that the August 28 Hearing was a farce. The court will first resolve this issue before addressing the constitutional issue.
Plaintiff argues that, at the hearing, he was prevented from developing what he believes were relevant arguments regarding the reasonableness of the ejection. Specifically, Plaintiff contends that he tried to question witnesses regarding the track steward's and Defendants' past practices of ejecting individuals who have been accused of behavior similar to Plaintiff's. The court has reviewed the hearing transcript and it does appear as though Plaintiff was attempting to cross-examine Mark Loewe regarding the Commission's unequal treatment of other alleged violators in an attempt to show that Plaintiff's ejection was unreasonable. This line of questioning was met with constant objections by defense counsel which were routinely sustained because the hearing officer found the questioning to be irrelevant to the issue of whether Moreno was ejected based on a reasoned determination. Following numerous objections, Plaintiff, at the behest of his attorney, walked out of the hearing. Plaintiff's counsel stated:
(Doc. 36-1, Hearing Tr., p. 91). In accordance with 58 Pa.Code § 165.183(1), the hearing officer resumed the hearing and Penn National proceeded to present the remainder of its case. The following week, the Commission entered its Adjudication and Order upholding both the August 3
Plaintiff, however, never appealed the Commission's order, and the time to do so has now expired.
In so far as Plaintiff opposes Defendants' motion to vacate the preliminary injunction because the hearing was a "farce," the court finds that Plaintiff should have taken that issue up with the Commonwealth Court. Plaintiff's disagreement with the hearing officer's rulings on Defendants' objections, which caused him to walk out of the hearing, and his presumed disagreement with the ultimate outcome of the adjudication, are issues that could be argued before the Commonwealth Court pursuant to Moreno's absolute right to appeal under 58 Pa.Code § 165.185 and 42 Pa.C.S. § 763. This court will not substitute itself for the Commonwealth Court and, in effect, permit Plaintiff to do an end run around Pennsylvania appellate procedure in determining the fairness of the hearing. To do so would, in essence, turn this court into an appellate court for state court or administrative decisions. This is improper. This argument is therefore rejected.
Plaintiff's second argument in response to Defendants' motion, that 58 Pa.Code § 165.231 is unconstitutional both as applied and as written, also forms the basis for Plaintiff's Motion to Overturn the Ejection of Tito Moreno Because 58 Pa.Code § 165.231 is Unconstitutional. Defendants argue that the court should abstain from ruling on Plaintiff's constitutionality claims pursuant to the Younger abstention and the Rooker-Feldman doctrines. Alternatively, Defendants argue that even if the court does not abstain from ruling on the constitutionality issues, Plaintiff lacks standing to challenge the constitutionality of the state regulation because he has suffered no injury-in-fact. For the reasons set forth below, the court declines to abstain from ruling and will address the constitutionality of 58 Pa.Code § 165.231.
Under Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971), federal courts must abstain in certain circumstances from exercising jurisdiction over a claim where resolution of that claim would interfere with an ongoing
Therefore, the relevant question is whether proceedings in this court had advanced beyond an "embryonic stage" such that the subsequent state administrative proceeding does not require this court to abstain pursuant to Younger. This question was answered by the Supreme Court in Hawaii Housing Auth. v. Midkiff, 467 U.S. 229, 238, 104 S.Ct. 2321, 81 L.Ed.2d 186 (1984), where the Court found that a "federal court action in which a preliminary injunction is granted has proceeded well beyond the `embryonic stage,' ... and considerations of economy, equity and federalism counsel against Younger abstention at this point." To reiterate, Plaintiff filed in this court a complaint and motion for temporary restraining order and preliminary injunction on August 9, 2012. (Doc. 1.) On August 10, 2012, this court entered a temporary restraining order and scheduled a hearing on the preliminary injunction for August 16, 2012. (Doc. 6.) Following the hearing, the court entered an order on August 22, 2012, granting a preliminary injunction. (Doc. 20.) Subsequently, on August 28, 2012, the Commission held a hearing on the August 3 Sanctions and August 14 Ejection, in accordance with the revised notice of hearing, issued on August 27, 2012. Accordingly, because the court granted a preliminary injunction before the Commission's hearing, it is clear that the federal action proceeded beyond an "embryonic stage" at the time the state action commenced and the Younger abstention does not apply.
The Rooker-Feldman doctrine
A claim is the functional equivalent of an appeal if: (1) "the federal claim was actually litigated in state court prior to the filing of the federal action"; or (2) "if the federal claim is inextricably intertwined with the state adjudication, meaning that federal relief can only be predicated upon a conviction that the state court was wrong." Id. A federal claim is inextricably intertwined with a state adjudication when the federal court must determine that the state court judgment was erroneously entered in order to grant the requested relief, or the federal court must take action that would negate the state court's judgment. Mat 581.
Plaintiff argues that the Rooker-Feldman doctrine is inapplicable for the same reason the Younger doctrine does not apply: Moreno filed in federal court prior to the commencement and resolution of the state court proceedings. (Doc. 37 at 5.) Plaintiff bases this argument on the Supreme Court's decision in Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280, 284, 125 S.Ct. 1517, 161 L.Ed.2d 454 (2005), which held that the Rooker-Feldman doctrine "is confined to cases of kind from which the doctrine acquired its name: cases brought by state-court losers complaining of injuries caused by state-court
Additionally, every circuit that this court has identified that considered whether the Rooker-Feldman doctrine applies to judicial and administrative decisions has rejected that argument. In The Ivy Club v. Cary Edwards, 943 F.2d 270 (3d Cir.1991), the Third Circuit Court of Appeals refused to apply Rooker-Feldman to a state administrative decision. Id. at 284 (citing Feldman, 460 U.S. at 482, 103 S.Ct. 1303 (1983) ("United States District Court has no authority to review final judgments of a state court in judicial proceedings.")); see also Natl R.R. Passenger Corp. v. Pa. Pub. Utility Comm'n, 342 F.3d 242, 257 (3d Cir.2003) ("The Supreme Court has made clear ... that the Rooker-Feldman doctrine applies only to state judicial proceedings, not administrative or legislative proceedings."); Narey v. Dean, 32 F.3d 1521, 1525 (11th Cir.1994) (refusing to extend Rooker-Feldman to the decision of a State Personnel Board because "the Rooker-Feldman doctrine, unlike that of res judicata, applies only to state court decisions, not state administrative decisions."); Harken v. City of Chicago, 103 F.3d 1346, 1349 (7th Cir.1997) (Posner, C.J.) ("Countless cases ... allow people who lose in state administrative proceedings to seek relief in federal court [under Section 1983].... If the Rooker-Feldman doctrine is to extend to administrative judgments, it would have to be done by the [Supreme Court]."); Scott v. Flowers, 910 F.2d 201, 208 (5th Cir.1990) (refusing to extend the Rooker-Feldman doctrine to a reprimand issued by the Texas Commission on Judicial Conduct because "the Commission can not be regarded as the agent of the state court system.") Here, the Pennsylvania Horse Racing Commission can not be said to be an agent of the courts, but rather a separate entity that has broad authority over horse racing and betting.
Defendants make one final effort to prevent this court from ruling on Plaintiffs constitutional arguments. Defendants argue that Plaintiff has no standing to challenge the constitutionality of the regulation because he has not shown an "injury in fact" with regard to the application of 58 Pa.Code § 165.231 as it applies to him. Three well-established constitutional standing requirements are set forth in Lujan v. Defenders of Wildlife: 1) "injury in fact" that is "concrete and particularized" and "actual or imminent"; 2) a causal connection between the injury alleged and the "challenged action of the defendant"; and 3) the injury is likely (speculation is insufficient) to be "redressed by a favorable decision." 504 U.S. 555, 560-61, 112 S.Ct. 2130,119 L.Ed.2d 351 (1992).
Defendants only challenge the "injury in fact" requirement for standing, arguing that Plaintiff was not harmed because he was provided a prompt post-suspension hearing and adjudication. Moreover, Defendants argue that Moreno suffered no harm as a result of this court's temporary restraining order and preliminary injunction because those orders prevented Penn National from taking any adverse action against Plaintiff. Plaintiff retorts he has suffered an injury as a result of the Commission's failure to provide a pre-ejection or prompt post-suspension hearing, which resulted in his horses being scratched from multiple races, a denial of access to his horses, a threat to the possession and use of his stalls, and a denial of the ability to practice his profession. The court finds that Plaintiff has sufficiently shown "injury in fact" and therefore has standing to pursue the instant matter.
Having found that Plaintiff has standing to pursue this matter and that neither the Younger abstention nor the Rooker-Feldman doctrine is applicable in this case, the court may rule on Plaintiffs argument that 58 Pa.Code § 165.231 is unconstitutional. Plaintiff argues that 58 Pa.Code § 165.231 is unconstitutional both as written and as applied because it violates the Due Process Clause of the Fourteenth Amendment. Disposition of this issue will resolve both motions presently before the court. For the reasons stated below, the court finds that 58 Pa.Code § 165.231 fails to pass constitutional muster.
Plaintiff relies exclusively on the Supreme Court's case in Barry, supra, to argue that 58 Pa. Code § 165.231 violates the Due Process Clause of the Fourteenth Amendment. In that case, John Barchi, a licensed harness race trainer, was advised by the New York State Racing and Wagering Board that one of his horses tested positive for a prohibited substance. As a result, Barchi's license was suspended for
Plaintiff argues that he was denied due process because he was not permitted a pre-deprivation hearing before his "quietus" date, explained below, and that he was not afforded a sufficiently prompt postdeprivation hearing. Plaintiff further argues that the Supreme Court's holding in Barry requires this court to find 58 Pa. Code § 165.231 unconstitutional. Following a close examination of Barry and the requirements of 58 Pa.Code § 165.231, this court agrees that 58 Pa.Code § 165.231 is constitutionally infirm.
As to Plaintiffs argument that he should have been afforded a predeprivation hearing, Plaintiff believes that a hearing should have been held before the "quietus date," the date a trainer must vacate his stalls, which, in practice, is 48 hours after the ejection.
In Barry, the Supreme Court emphasized that a pre-deprivation evidentiary hearing is not required in eveiy circumstance and an interim or temporary emergency deprivation of a property right may be constitutional, provided that the state has an important interest to protect and probable cause to believe that the plaintiff poses a real and immediate danger to that protected interest. Gershenfeld v. Justices of the Sup.Ct. of Penna., 641 F.Supp. 1419, 1424 (E.D.Pa.1986) (citing Barry, 443 U.S. at 64, 99 S.Ct. 2642). The guarantee of a prompt post-deprivation hearing is a critical factor in determining the validity of the previously invoked interim or temporary deprivation of process. Id. (citing Parratt v. Taylor, 451 U.S. 527, 540, 101 S.Ct. 1908, 68 L.Ed.2d 420 (1981) (holding that the state can only take a property interest without a deprivation hearing if "meaningful" opportunity for post-deprivation hearing is afforded).) Here, there is no doubt that the state has an interest in protecting the integrity of horse racing. See Barry, 443 U.S. at 64, 99 S.Ct. 2642 ("[t]he state also has an important interest in assuring the integrity of racing carried on under its auspices."). Furthermore, it is reasonable to believe that, on the facts stated above, Plaintiff posed a real and
The post-deprivation procedures in 58 Pa.Code § 165.231, however, fail to assure a prompt post-deprivation hearing. A comparison of the statute at issue in Barry
Plaintiff also argues that the 58 Pa.Code § 165.231 is unconstitutional as applied because the Commission's decision affirming the August 3 Sanctions and the August 14 Ejection was not issued until September 6, 2012. Indeed, if Plaintiff had not applied and received a temporary restraining order and a subsequent preliminary injunction, he would have been forced to remove his horses well before September 6, 2012.
Neither the Younger abstention nor the Rooker-Feldman doctrine are applicable in this case. Because 58 Pa.Code § 165.231 does not assure a prompt proceeding and prompt disposition to licensees who have been ejected from a race track, the regulation violates Due Process Clause of the Fourteenth Amendment. Accordingly, Defendants' Motion to Vacate August 22, 2012 Order Granting Preliminary Injunction will be denied, and Plaintiffs Motion to Overturn the Ejection of Tito Moreno Because 58 Pa.Code § 165.231 is Unconstitutional will be granted.
An appropriate order will issue.
In accordance with the accompanying memorandum of law,