Amusement Sales, Inc. v. State of Georgia

CourtCourt of Appeals of Georgia
DecidedJuly 11, 2012
DocketA12A0200
StatusPublished

This text of Amusement Sales, Inc. v. State of Georgia (Amusement Sales, Inc. v. State of Georgia) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amusement Sales, Inc. v. State of Georgia, (Ga. Ct. App. 2012).

Opinion

SECOND DIVISION BARNES, P. J., ADAMS and MCFADDEN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed. (Court of Appeals Rule 4 (b) and Rule 37 (b), February 21, 2008) http://www.gaappeals.us/rules/

July 11, 2012

In the Court of Appeals of Georgia A12A0200. AMUSEMENT SALES, INC. v. STATE OF GEORGIA.

BARNES, Presiding Judge.

In this civil in rem forfeiture action arising out of allegations of illegal

commercial gambling at a convenience store, the jury found in favor of the State of

Georgia, resulting in the forfeiture of eight electronic game machines and a portion

of the money found in those machines to the State. The trial court entered judgment

on the jury verdict, and Amusement Sales, Inc., the owner of the machines, now

appeals. In several enumerations of error, Amusement Sales contends that it was

entitled to judgment as a matter of law because the State failed to demonstrate that

illegal commercial gambling had occurred, and because it had no actual or

constructive knowledge of the alleged gambling. Amusement Sales further contends that the trial court erred in denying its motion to disqualify the special assistant

district attorneys (“SADAs”) appointed to prosecute the action on a contingency fee

basis. Lastly, Amusement Sales contends that the trial court erred in its charge to the

jury on the “innocent party” defense.

As discussed below, we reject Amusement Sales’s contention that it was

entitled to judgment as a matter of law on the State’s forfeiture claim. However, we

conclude that contingency fee arrangements for SADAs appointed to represent the

State in civil forfeiture actions violate Georgia public policy, given that those types

of arrangements cause the SADAs to have a personal financial stake in the outcome

of the proceedings. Consequently, we agree with Amusement Sales that its motion to

disqualify should have been granted, and, as a result, we reverse the judgment and

remand the case for a new trial. In the interest of judicial economy, we also address

the trial court’s jury charge on the “innocent party” defense and conclude that a

different charge should be given on retrial.

The pertinent factual and procedural history is as follows. Pursuant to

Georgia’s Racketeer Influenced and Corrupt Organizations Act (the “RICO Act”),

OCGA § 16-14-1 et seq., the State of Georgia filed a complaint in the Superior Court

of Emanuel County, alleging that a local convenience store known as KT’s Place had

2 made illegal cash payouts to customers who played electronic game machines located

on the premises. The State alleged that the machines were gambling devices, that the

store was being operated as a gambling place, and that the felony crime of

commercial gambling had repeatedly occurred on the premises in violation of OCGA

§ 16-12-22. The State further alleged that the criminal acts of commercial gambling

constituted a pattern of racketeering activity under OCGA § 16-14-3 (8) (A) and (9)

(A) (xvii). Based upon these allegations in the complaint, the State sought in rem

forfeiture of eight electronic game machines and money seized from those machines

by law enforcement officials on the ground that the property was “used or intended

for use in the course of, derived from, or realized through the foregoing pattern of

racketeering activity.”1 OCGA § 16-14-7 (a).

The complaint was filed on behalf of the State by Andrew J. Ekonomou and

Michael G. Lambros, whom the District Attorney for the Middle Judicial Circuit of

Georgia had appointed as SADAs to pursue the State’s forfeiture claims against a

number of convenience stores. The SADAs were in private practice and entered into

1 The State also sought forfeiture against two defendants (the convenience store and its owner) in personam, but those claims were dismissed after the two defendants reached a settlement with the State.

3 a contingency fee arrangement with the State to prosecute and recover a percentage

of any forfeited proceeds.

Amusement Sales answered the complaint and made a claim for the property

seized from the convenience store. Amusement Sales leased the electronic game

machines to the store and claimed ownership of the machines and the money seized

from them. According to Amusement Sales, the machines were bona fide coin-

operated amusement machines under OCGA §§ 16-12-35 (d) and 48-17-1 (2) rather

than gambling devices, and it was an innocent party that had no actual or constructive

knowledge of illegal cash payouts made to store customers. Consequently,

Amusement Sales asserted that the machines and money were not subject to forfeiture

and should be returned to it by the State.

Amusement Sales also filed a motion to disqualify the SADAs from

prosecuting the case, contending that their contingency fee arrangement created an

impermissible conflict of interest and that Emanuel County had never properly

approved of their appointment or compensation. The trial court denied the motion,

and the case proceeded to a jury trial, with SADA Lambros serving as lead attorney

for the State.

4 Piyush Patel, the owner and operator of the convenience store, testified at trial

as a State’s witness. He conceded that he knew that customers playing the eight

electronic game machines inside his store were supposed to be rewarded exclusively

with non-cash gift merchandise when they won a game. Patel admitted, however, that

he instead rewarded winning customers with illegal cash payouts on a daily basis for

at least two years prior to the seizure of the machines by law enforcement. According

to Patel, the highest single cash payout he made to a customer was $500. He further

testified that he purchased gift merchandise from Amusement Sales for use in his

store only one time during the years that the machines were located there.

Robert Jue, an employee of Amusement Sales, described for the jury how the

electronic game machines inside the convenience store were played. Jue testified that

the machines would show combinations of “fruit or numbers” on wheels spinning on

the screen, and a player would insert cash into the machine to play and punch a button

to stop the wheels. The player would win or lose based on the combination of

symbols appearing on the screen once the wheels stopped. According to Jue, a player

would just punch the button on the machine, “and whatever comes up[,] comes up.”

Jue was in a position to know how the machines were played because he

traveled to the convenience store every other week to collect 30 percent of the net

5 profits from the machines, the amount owed to Amusement Sales under its

arrangement with the store. To determine the amount of net profits owed to

Amusement Sales, Jue would print out an “audit ticket” from each of the machines

and “add up the net profit” shown on the tickets. Although Jue claimed that he was

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Davenport v. State
278 S.E.2d 440 (Court of Appeals of Georgia, 1981)
Head v. State
560 S.E.2d 536 (Court of Appeals of Georgia, 2002)
Walker v. State
636 S.E.2d 705 (Court of Appeals of Georgia, 2006)
Tecumseh Products Co., Inc. v. Rigdon
552 S.E.2d 910 (Court of Appeals of Georgia, 2001)
Cisco v. State
680 S.E.2d 831 (Supreme Court of Georgia, 2009)
Pitts v. State
428 S.E.2d 650 (Court of Appeals of Georgia, 1993)
Gillen v. Bostick
215 S.E.2d 676 (Supreme Court of Georgia, 1975)
State v. Williams
603 S.E.2d 278 (Supreme Court of Georgia, 2004)
Pechin v. Lowder
659 S.E.2d 430 (Court of Appeals of Georgia, 2008)
General Motors Acceptance Corp. v. State
613 S.E.2d 641 (Supreme Court of Georgia, 2005)
Mitchell v. Cancer Carepoint, Inc.
683 S.E.2d 923 (Court of Appeals of Georgia, 2009)
Williams v. State
369 S.E.2d 232 (Supreme Court of Georgia, 1988)
Aon Risk Services, Inc. v. Commercial & Military Systems Co.
607 S.E.2d 157 (Court of Appeals of Georgia, 2004)
Ultra Telecom, Inc. v. State
701 S.E.2d 144 (Supreme Court of Georgia, 2010)
Wood v. B&S Enterprises, Inc.
723 S.E.2d 443 (Court of Appeals of Georgia, 2012)
Patel v. State
713 S.E.2d 381 (Supreme Court of Georgia, 2011)
Whitworth v. State
622 S.E.2d 21 (Court of Appeals of Georgia, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
Amusement Sales, Inc. v. State of Georgia, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amusement-sales-inc-v-state-of-georgia-gactapp-2012.