Becker v. Wilcox

116 N.W. 160, 81 Neb. 476, 1908 Neb. LEXIS 147
Nebraska Supreme Court·Decided April 23, 1908·No. No. 15,157·Published·Cited by 5 cases

Opinion

Epperson, C.

The petition and the answer herein in effect alleged and admitted that the defendant was the owner of a lottery ticket issued to him by the Devore Diamond Company, which he sold to the plaintiff. This action is brought to recover the purchase price. The court below sustained defendant’s motion for a judgment on the pleadings. Plaintiff appealed.

The lottery ticket is substantially the same as that considered by this court in Bowen v. Lynn, 73 Neb. 215. It was there held that the purchaser of such lottery ticket or contract could not recover under the provisions of section 214 of the criminal code, which provides for the recovery by civil action of money lost at gambling. The plaintiff herein does not rely upon the provisions of that section; but it is her contention that, because section 225 of the [477] criminal code prohibits the sale of lottery tickets and imposes a penalty upon the vendor, she is not in pari delicto, and, as there was a complete failure of consideration for the purchase price paid to the defendant, she is entitled to recover. It is the general rule that one in pari delicto cannot enforce an executory contract, and, moreover, cannot recover back the amount paid upon an executed illegal contract. Cases are numerous which refuse recovery to one who has become the victim of a gambling adventure or of a lottery scheme, and such decisions are invariably founded upon the maxim: “In pari delicto potior est conditio defendentis.” On the other hand, it is a well-established rule that, where one has paid money for an illegal consideration, he can, on account of its illegality, recover the same when he is not particcps criminis and is not in pari delicto. The sale of lottery tickets was not prohibited by the common law. It is made illegal in this state by section 225 of our criminal code, which provides: “If any person or persons shall vend, sell, barter, or dispose of any lottery ticket or tickets, order or orders, device or devices, of any kind, for, or representing any number of shares, or any interest in any lottery, or scheme of chance, * * every such person shall be fined in any sum not exceeding five hundred dollars, or be imprisoned not exceeding six months, or both, at the discretion of the court.” This, it will be observed, imposes no penalty upon the vendee. Had the statute declared the sale of lottery tickets illegal, and had it imposed a penalty upon both the vendor and vendee, or had it prescribed no penalty whatever, there can be no doubt but that the parties to a contract for the sale thereof, whether executed or executory, would be in pari delicto, and neither could appeal to the court for relief. But, as the legislature imposed the penalty upon the vendor only, it would seem that the statute was intended for the protection of purchasers of lottery tickets, and for this reason the purchaser by participating in the illegal transaction is neither particcps criminis nor in pari delicto.

[478] A review of many of tlie authorities construing the rights of parties under a prohibited contract may be found in Storz & Her v. Finkelstein, 46 Neb. 577. It is unnecessary to again quote from the same authorities. Especially, however, we desire to direct attention to Tracy v. Talmage, 14 N. Y. 162, and Sacketts Harbor Bank v. Codd, 18 N. Y. 240. In Storz & Her v. Finklestein, supra, it was held: .“No action can be maintained on a contract the consideration of which is either wicked in itself or prohibited by law.” That rule is not applicable to the case at bar. It is to be followed in actions brought for the enforcement of executory contracts, or in actions founded upon any contract where the parties are in pari delicto. In Gray v. Roberts, 12 Am. Dec. 383, 2 A. K. Marsh. (Ky.) *208, it was held: “A contract in violation of law is void, and the courts will neither enforce payment nor enable one who has paid money thereon to recover it, if both parties are in pari delicto; but, if the law violated was intended to protect one of the parties against the acts of the other, they are not in pari delicto, and the party designed to be protected may recover money paid in violation of such law. Money paid for lottery tickets, where the lottery is forbidden by law, may be recovered, for the law is designed for the purchaser’s protection; but, if the money Avas paid under a judgment of a court of competent jurisdiction, it cannot be recovered.” That case in principle is identical Avith the case at bar.' In the opinion Ave find the following: “If both parties are equally guilty of a breach of the law, a court of justice cannot interpose its aid in behalf of either; for it is a settled rule that pa/ri delicto potior est conditio defendentis; but, where the transaction is in violation of a law made for the protection of one party against the acts of the other, they are not equally guilty, and the innocent party, when lie has paid money upon such a transaction, may, without doubt, recover it back. * * * The act of 1769, for preventing and suppressing private lotteries, which was the law in force- at the time of the [479] contract in this case, appears manifestly, from the preamble of the act, to have been designed by the legislature to protect the interest of others against the devices of those who should set up a lottery; add the enacting clause is made to operate upon the latter only. For it is only persons who set up the lottery, and not those who purchase the tickets, that offend against the provisions of the act.”

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Becker v. Wilcox, 116 N.W. 160, 81 Neb. 476, 1908 Neb. LEXIS 147 (Neb. 1908).

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