Domingue v. Dickinson

611 So. 2d 796, 1992 La. App. LEXIS 4037, 1992 WL 382095
CourtLouisiana Court of Appeal
DecidedDecember 21, 1992
DocketNo. 91-1077
StatusPublished
Cited by1 cases

This text of 611 So. 2d 796 (Domingue v. Dickinson) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Domingue v. Dickinson, 611 So. 2d 796, 1992 La. App. LEXIS 4037, 1992 WL 382095 (La. Ct. App. 1992).

Opinion

YELVERTON, Judge.

Plaintiff sued for collection of two promissory notes against the deceased-debtor’s estate. The administratrix-defendant refused to pay. She alleged that the plaintiff loaned the deceased money for an illegal gaming operation involving two video poker machines. (This action predates Act 1062 of the 1991 Legislature which effectively legalized draw poker devices.) The defendant alleged that the notes were unenforceable for unlawful cause. The trial court held that the notes were valid and ruled in favor of the plaintiff. We reverse and dismiss.

FACTS

Eddie Domingue, d/b/a Domingue Amusement, is the plaintiff in this action. He runs Domingue Amusement which is a family partnership that is in the business of providing bars, lounges and other businesses with various types of coin-operated pinball machines and video games.

Warded Dickinson,' before his death, owned and operated the Cajun Roundup Lounge, also known as “Daddy’s Money,” in Acadia Parish. Dickinson and Do-mingue had an agreement whereby Dickinson allowed Domingue to put two video poker machines in the Cajun Roundup. In exchange Domingue would allow Dickinson to keep a certain percentage of the machines’ weekly proceeds.

Lela Ann Daigle Dickinson is Wardell’s surviving wife. She is administratrix of his estate. Domingue is suing Lela, in her capacity as administratrix, for the collection of two promissory notes, made payable to Domingue Amusement. Domingue claims that Warded authorized and signed both alleged notes.

The first of these notes is dated January 8, 1988. It is made payable to the order of Domingue Amusement, at “each regular weekly checking”, for the principal amount of $1,500 at an interest rate of 10% per annum. Domingue explained that a “checking” was a standard practice wherein an employee of Domingue Amusement would come by the Cajun Roundup on a weekly basis, check the machines, and remove the proceeds from the machines. Do-mingue Amusement would then pay Dickinson a portion of these proceeds. In return, the Cajun Roundup would continue to allow Domingue to keep the machines in the bar.

Since the terms of the note required payment at “each weekly checking,” Do-mingue Amusement would simply keep some or ad of Dickinson’s share of each week’s proceeds as a loan payment. Thus, the terms of the note specifically required payment from the proceeds of the video poker machines.

Domingue explained further that in the event of the Cajun Roundup’s sale or closure, the note would be due on demand.

Domingue claims that the purpose of the loan was start-up money. More specifically, he testified that he made this loan to Dickinson because Domingue Amusement was going to put machines in Dickinson’s place and because he wanted to help Dickinson “start a business.”

Lela claims that the machines were used for an illegal gambling operation. She alleges that Domingue Amusement constantly kept $200 in a metal lock box behind the bar in the Cajun Roundup. Two of the Cajun Roundup employees testified that this money was used to pay those patrons who won on the video poker machines. Therefore, Lela argues that the machine’s weekly proceeds represented winnings from gambling. Accordingly, she contends that since her late husband’s debts were to be repaid from illegal gambling proceeds, the debts are null for want of legal cause.

Domingue denied knowledge of any involvement with illegal gambling payoffs in the Cajun Roundup.

The trial court found that enough money was removed from the machines so that $880 remained in the balance on the first note. As far as the first note is concerned, both sides agree that Dickinson and Do-mingue entered into the agreement as evidenced by the terms of the note.

The second note on which Domingue sues is dated February 29,1988. Its principal is for $2,000. Except for the principal, its terms and conditions are virtually the [798]*798same as the first note. Lela alleges the second note is also unenforceable for illegal cause.

Domingue claims that the second note represents a personal loan to Wardell. He testified that this loan was made purely out of friendship and that it had nothing to do with the poker machines. Domingue alleges that the second note was secured by Lela’s title to a GMC vehicle and that War-dell was to repay him the $2,000 in two weeks from the date that the loan was made. As evidence of his claims, Do-mingue produced the GMC title at trial.

Directly opposing Domingue’s story about the second promissory note is the fact that this note, like the first one, expressly states that payment is to be taken “from each weekly checking.” The contradiction between Domingue’s assertion of a two week collection period and the note’s express collection period of “each weekly checking” was explained by Domingue as a mistake in draftsmanship.

Besides her primary defense of illegal cause, Lela claims that the signature on the second note is not that of her husband and asserts the affirmative defense of forgery. Lela also raises several technical deficiencies regarding the form of both notes as affirmative defenses against Domingue’s claims.

The trial court accepted the signatures on both notes as that of the deceased. The court also found that the cause was not illegal. Accordingly, it awarded Domingue $880 on the first note plus interest and attorney's fees. It awarded a judgment to Domingue on the second note for $2,000 plus interest and fees.

OPINION

We resolve this case on the issue of illegal cause. In its reasons for ruling, the trial court assessed Domingue’s credibility as follows:

The Court does not accept the testimony of Mr. Domingue that he was unaware or uninformed that these machines paid off. His testimony in many instances was less than credible; ...

However, in addressing the issue of illegal cause, the court held:

The Court will also make a finding that the defendant did not prove that the cause of the loan itself was illegal. Even if the funds which were used to partially repay the loan were obtained from the amusement games, this does not, in and of itself, constitute illegal gambling.

The trial court explained this conclusion with the following reasoning:

The profits on each machine were used to pay the loan. Any ‘illegal pay-off’ which might have occurred involved some third party who played the games, not the plaintiff himself.

In sum, the trial court found that if any illegal gambling was going on, it occurred between the Cajun Roundup and its patrons. It ruled that Domingue’s knowledge of illegal payoffs did not make him a member of the gambling venture. Therefore, it found that Domingue’s being paid from the poker machine proceeds did not support the affirmative defense of illegal cause.

We disagree. Cause is the reason why a party obligates himself. La.C.C. art. 1967. An obligation cannot exist without lawful cause. La.C.C. art. 1966. La.C.C. art. 1968 defines unlawful cause as follows:

The cause of an obligation is unlawful when the enforcement of the obligation would produce a result prohibited by law or against public policy.

We find that Domingue loaned money to Wardell not only for the 10% per annum interest but also in exchange for the right to put machines in the Cajun Roundup.

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Bluebook (online)
611 So. 2d 796, 1992 La. App. LEXIS 4037, 1992 WL 382095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/domingue-v-dickinson-lactapp-1992.