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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. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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