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Vicki B. Lee Darrell E. Lee v. Stephen S. Walters, Brad Higbee, George Rankin, Richard Reid, and Laura A. Fine (In Their Individual and Official Capacities as Members of the Oregon Racing Commission), and Joanne McAdam (In Her Individual Capacity Only)

Citations: 433 F.3d 672; 2005 U.S. App. LEXIS 28888; 2005 WL 3544390Docket: 03-35102

Court: Court of Appeals for the Ninth Circuit; December 28, 2005; Federal Appellate Court

Narrative Opinion Summary

The case concerns a dispute between the co-owners of The New Portland Meadows, Inc. and members of the Oregon Racing Commission regarding exclusion from a horse racing track under Oregon Revised Statutes section 462.080(1). The plaintiffs alleged the statute was unconstitutionally vague, violating due process. Initially, the district magistrate judge ruled the statute invalid due to vagueness. However, the plaintiffs did not succeed in their damages claims, leading to an appeal. The Ninth Circuit vacated the district court's vagueness ruling, citing a failure to sever the unconstitutional provision as required by Oregon law. The court emphasized that the exclusion orders were justified by other provisions of the statute, thus avoiding constitutional questions. The plaintiffs' procedural due process claims were dismissed for lack of evidence. The court’s decision affirmed the exclusion orders based on statutory violations involving fund mismanagement, while vacating the ruling on the statute's vagueness. The majority opinion adhered to the principle of constitutional avoidance, resolving the case on non-constitutional grounds, while a dissenting opinion argued for addressing the merits of the facial challenge. Ultimately, the exclusion orders were deemed valid due to the co-owners' willful violation of racing fund management provisions.

Legal Issues Addressed

Constitutional Avoidance

Application: The court declined to address the constitutionality of the 'detrimental to the best interest of racing' provision, relying instead on the principle of constitutional avoidance by affirming the exclusion based on other statutory grounds.

Reasoning: The court affirms the exclusion orders without addressing the constitutionality of the statute's 'detrimental to the best interest of racing' provision, adhering to the principle of judicial restraint that avoids constitutional questions unless necessary.

Facial Challenge Requirements

Application: The court ruled that the Lees failed to demonstrate that section 462.080(1) was unconstitutional in all its applications, thereby negating their facial challenge.

Reasoning: The majority emphasized that a successful facial challenge requires proof that the statute is invalid under all conceivable circumstances.

Judicial Restraint in Constitutional Matters

Application: The majority opinion avoided ruling on the facial unconstitutionality of the statute, illustrating judicial restraint by resolving the case on non-constitutional grounds.

Reasoning: The majority decision declines to address the facial challenge based on the principle of constitutional avoidance, referencing United States v. Sandoval-Lopez, which advocates for resolving cases on alternative grounds if available.

Procedural Due Process

Application: The Lees' procedural due process claim was dismissed due to insufficient evidence, indicating the necessity of strong factual support for such claims.

Reasoning: The Lees’ procedural due process claim was dismissed due to a lack of evidence.

Severability of Statutory Provisions

Application: The Ninth Circuit held that the district court erred by not severing the unconstitutional provision from section 462.080(1) as Oregon law presumes severability unless specific exceptions apply.

Reasoning: The Ninth Circuit vacated the district court's vagueness ruling, stating that the court failed to sever the unconstitutional provision as mandated by Oregon law.