ROBERT L. WALGATE, JR., ET AL., : : Ohio Supreme Court Case No. 13-0656 Plaintiffs-Appellants, : : on Appeal from the Franklin County Court of V
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Supreme Court of Ohio Clerk of Court - Filed January 26, 2015 - Case No. 2013-0656 IN THE SUPREME COURT OF OHIO STATE EX REL. : ROBERT L. WALGATE, JR., ET AL., : : Ohio Supreme Court Case No. 13-0656 Plaintiffs-Appellants, : : On Appeal from the Franklin County Court of v. : Appeals, Tenth Appellate District, : Case No. 12-AP-548 JOHN R. KASICH, ET AL., : : Defendants-Appellees. : JOINT MERIT BRIEF OF INTERVENING DEFENDANTS-APPELLEES CENTRAL OHIO GAMING VENTURES, LLC, TOLEDO GAMING VENTURES, LLC, ROCK OHIO CAESARS LLC, ROCK OHIO CAESARS CLEVELAND LLC, ROCK OHIO CAESARS CINCINNATI LLC, THISTLEDOWN RACETRACK, LLC, NORTHFIELD PARK ASSOCIATES, LLC, LEBANON TROTTING CLUB, INC., MTR GAMING GROUP, INC., AND PNK (OHIO), LLC Christopher S. Williams* (0043911) Matthew L. Fornshell* (0062101) *Counsel of Record *Counsel of Record James F. Lang (0059668) John H. Oberle (0073248) Matthew M. Mendoza (0068231) Albert G. Lin (0076888) Alexander B. Reich (0084869) Elizabeth E. Cary (0090241) Lindsey E. Sacher (0087883) ICE MILLER, LLP CALFEE, HALTER & GRISWOLD LLP 250 West Street The Calfee Building Columbus, Ohio 43215 1405 East Sixth Street Tel: (614) 462-2700 Cleveland, OH 44114-1607 Fax: (614) 462-5135 Tel: (216) 622-8200 [email protected] Fax: (216) 241-0816 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Attorneys for Intervening Defendant-Appellees [email protected] Central Ohio Gaming Ventures, LLC and [email protected] Toledo Gaming Ventures, LLC Attorneys for Intervening Defendant-Appellees Rock Ohio Caesars LLC, Rock Ohio Caesars Cleveland LLC, and Rock Ohio Caesars Cincinnati LLC CO\4795612.3 Alan H. Abes (0062423) Charles R. Saxbe* (0021952) DINSMORE & SHOHL LLP *Counsel of Record 255 East 5 th Street, Suite 1900 James D. Abrams (0075968) Cincinnati, Ohio 45202 Irv Berliner (0033150) Tel: (513) 977-8149 Celia M. Kilgard (0085207) Fax: (513) 977-8141 TAFT STETTINIUS & HOLLISTER, LLP [email protected] 65 E. State St., Suite 1000 Attorneys for Intervening Defendant-Appellees Columbus, Ohio 43215 Thistledown Racetrack, LLC Tel: (614) 334-6162 Fax: (614) 221-2007 [email protected] [email protected] [email protected] [email protected] Attorneys for Intervening Defendant-Appellees Northfield Park Associates, LLC, Lebanon Trotting Club, Inc., MTR Gaming Group, Inc. and PNK (Ohio), LLC Thomas W. Connors* (0007226) Mike DeWine (0009181) *Counsel of Record Ohio Attorney General James M. Wherley, Jr. (0082169) Eric E. Murphy* (0083284) BLACK, MCCUSKEY, SOUERS & State Solicitor ARBAUGH *Counsel of Record 220 Market Avenue South Michael Hendershot (0081842) Suite 1000 Chief Deputy Solicitor General Canton, Ohio 44702 Stephen Carney (0063460) Tel: (330) 456-8341 Deputy Solicitor General Fax: (330) 456-5756 Matthew R. Cushing (0092674) [email protected] Deputy Solicitor [email protected] OFFICE OF THE OHIO ATTORNEY Attorneys for Plaintiffs-Appellants Robert L. GENERAL Walgate, Jr., David P. Zanotti, The American 30 East Broad Street, 17 th Floor Policy Roundtable dba Ohio Roundtable, Columbus, Ohio 43215 Sandra L. Walgate, Agnew Sign & Lighting, Tel: (614) 466-8980 Inc., Linda Agnew, Paula Bolyard, Jeffrey Fax: (614) 466-5087 Malek, Michelle Watkin-Malek, Thomas W. [email protected] Adams, Donna J. Adams, Joe Abraham, and [email protected] Frederick Kinsey. [email protected] Attorneys for Defendants-Appellees Ohio Governor John R. Kasich, Ohio Casino Control Commission, Ohio Lottery Commission, and Ohio Tax Commissioner Joseph W. Testa CO\4795612.3 TABLE OF CONTENTS I. INTRODUCTION ........................................................................................................... 1 II. COUNTER STATEMENT OF THE CASE AND FACTS ............................................... 3 A. Ohio’s Gaming Laws Have Been Repeatedly Implemented By The Democratic Process. ........................................................................................................................ 3 1. Ohio voters have repeatedly approved the expansion of legalized gaming. ................ 3 2. The General Assembly and the Executive Branch have repeatedly enacted legislation establishing a regulatory regime for casinos and VLTs. ............................................ 5 B. Relying On These Constitutional And Legislative Enactments, Ohio Companies, Ohio Workers, And Ohio Governments Have Invested Heavily In The Gaming Industry. ..... 6 C. The Lower Courts Dismissed Plaintiffs’ Claims For Lack Of Standing......................... 9 III. ARGUMENT ................................................................................................................ 12 A. The Casino And VLT Appellees Join In And Adopt The State Appellees’ Response Brief Because The Plaintiffs Lack Standing To Sue.................................................... 12 State, Casino, & VLT Appellees’ Proposition Of Law No. 1: Plaintiffs lack standing to challenge the constitutionality of statutes in the absence of any allegations of a concrete injury distinct from that sustained by the public generally…… 11 State, Casino, & VLT Appellees’ Proposition Of Law No. 2: Dismissal for lack of standing is proper, without a further opportunity to amend a complaint, when Plaintiffs never sought to amend and offered no facts, by affidavit or otherwise, showing a redressable injury-in-fact……………………………………………… 12 B. Plaintiffs Cannot Use Litigation To Advance Their Political Opposition To The Expansion Of Legalized Gaming In Ohio. .................................................................. 12 C. Continued Litigation Will Adversely Impact The Gaming Industry In Ohio. .............. 18 D. Plaintiffs Waived Their Claim Of Statutory Standing, And Such Claims Are Without Merit In Any Event. ................................................................................................... 22 State, Casino, & VLT Appellees’ Proposition Of Law No. 3: This Court specifically rejected a proposition about public-rights standing in light of JobsOhio. Plaintiffs’ arguments about that proposition are improper, but fail anyway… …………………………………………………………………………22 IV. CONCLUSION ............................................................................................................. 25 APPENDIX……………………………………………………………………………………... 27 i CO\4795612.3 TABLE OF AUTHORITIES Cases Arizona Christian Sch. Tuition Org. v. Winn , --- U.S. ----, 131 S.Ct. 1436, 179 L.E.2d 523 (2011) ............................................................................................................................. 16, 20 Burger Brewing Co. v. Liquor Control Comm’n , 34 Ohio St.2d 93, 269 N.E.2d 261 (1973) ...... 23 Clapper v. Amnesty Int’l , --- U.S. ----, 133 S.Ct. 1138, 85 L.E.2d 264 (2013) .......... 13, 14, 15, 24 Cleveland v. Shaker Heights , 30 Ohio St.3d 49, 507 N.E.2d 323 (1987) ................................... 13 Corron v. Corron, 40 Ohio St.3d 75, 531 N.E.2d 708 (1988)..................................................... 23 Cuyahoga Cnty. Bd. of Comm’rs v. State , 112 Ohio St.3d 59, 2006-Ohio-6499, 858 N.E.2d 330 ....................................................................................................................................... 15 Fed. Home Loan Mtge. Corp. v. Schwartzwald , 134 Ohio St.3d 13, 2012-Ohio-5017 N.E.2d 1214 ..................................................................................................................................... 12 Fortner v. Thomas , 22 Ohio St.2d 13, 257 N.E.2d 371 (1970) ............................................. 13, 15 Golden v. Zwickler , 394 U.S. 103, 89 S.Ct. 956, 22 L.E.2d 113 (1969) .................................... 24 Hein v. Freedom From Religion Found. , 551 U.S. 587, 127 S.Ct. 2552, 168 L.E.2d 424 (2007) .......................................................................................................... 16 Ohio State Ass’n of United Ass’n of Journeymen & Apprentices v. Johnson Controls, Inc. , 123 Ohio App. 3d 190, 703 N.E.2d 861 (8 th Dist. 1997) ................................................................3 Ostrander v. Preece , 129 Ohio St. 625, 169 N.E. 670 (1935)............................................... 14, 15 Pfeifer v. Graves , 88 Ohio St. 473, 104 N.E. 529 (1913) ....................................................... 1, 14 ProgressOhio.org, Inc. v. JobsOhio , 139 Ohio St.3d 520, 13, N.E.3d 1101, 2014-Ohio-2382 ............................................................................ 1, 11, 12, 13, 14, 15, 22, 23 Schlesinger v. Reservists Comm. to Stop the War , 418 U.S. 208, 94 S.Ct. 2925, 41 L.E.2d 706 (1974) ................................................................................................................................... 20 Simon v. E. Kentucky Welfare Rights Org. , 426 U.S. 26, 96 S.Ct. 1917, 48 L.Ed.2d 450 (1976) ................................................................................................................................... 24 State ex rel. Dallman v. Court of Common Pleas, Franklin Cnty. , 35 Ohio St.2d 176, 289 N.E.2d 515 (1973) ................................................................................................................ 13 State ex rel. E. Cleveland Fire Fighters’ Ass’n Loc. 500, Int’l Assoc. of Fire Fighters v. Jenkins, 96 Ohio St.3d 68, 2002-Ohio-3527, 771 N.E.2d 251 ............................................... 23 ii CO\4795612.3 State ex rel. Leslie v. Ohio Hous.