ILNews

COA reverses judgment on contract-rescission claim against lottery

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The Indiana Court of Appeals will allow lottery scratch-off game players’ claim of contract rescission against the state’s lottery commission to proceed to trial, but the court affirmed summary judgment in favor of the commission on the other claims filed by the players in a class-action suit.

In Jeff Koehlinger, et al. v. State Lottery Commission of Indiana, No. 49A02-1003-CT-247, Jeff Koehlinger and other plaintiffs sued the State Lottery Commission of Indiana for contract rescission, false advertisement, negligence, negligent misrepresentation, unjust enrichment, restitution, and money had and received. They sued because of misrepresentations on the lottery’s website regarding the odds of winning when purchasing “Cash Blast” tickets. More than 2.5 million tickets had to be replaced before they went on sale because of a manufacturing defect; this caused the lottery’s computer system to overstate the number of unclaimed prizes on the website. After 14 months, lottery officials noticed the error and adjusted for the actual number of unclaimed prizes, which resulted in a 1,260 percent decrease in the number of unclaimed prizes.

Players were upset and wanted the lottery commission to make it right, although the commission never informed players how to initiate an administrative process nor provided information about it.

The trial court denied the class’s motion for summary judgment and granted summary judgment for the commission.

The appellate judges affirmed summary judgment in favor of the lottery commission that it has immunity under the Deceptive Consumer Sales Act, and on the quasi-contractual claims for unjust enrichment, money had and received, and restitution. They also affirmed not granting summary judgment for the commission on the basis that the class had failed to exhaust their administrative remedies.

The majority affirmed summary judgment on the negligence and negligent misrepresentation claims. Judge Patricia Riley dissented on this issue because the designated evidence supported a genuine issue of material fact. The commission had a duty to exercise reasonable care not to misinform its customers about the remaining prizes in the Cash Blast game, she wrote. It breached that duty when it didn’t accurately represent those numbers and it even admitted it was a mistake not to catch this reporting for 14 months.

Judge Riley also concurred in result with her colleagues on reversing summary judgment for the lottery commission on the contract-rescission claim and remanding for trial. Some class members had designated evidence that establishes they relied on the misinformation on the lottery’s website when deciding to buy the tickets. The majority also concluded it was reasonable to infer that many of those players suffered prejudice as a result of detrimental reliance.

“If a player can prove to the trial court that he or she relied on the Lottery’s misinformation to his or her detriment, that player will be entitled to rescission,” wrote Judge Cale Bradford.
 

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  1. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  2. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  3. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  4. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  5. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

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