Eads, Etc. v. J. & J. Sales

275 N.E.2d 802, 257 Ind. 485, 1971 Ind. LEXIS 564
CourtIndiana Supreme Court
DecidedDecember 6, 1971
Docket1271S351
StatusPublished
Cited by27 cases

This text of 275 N.E.2d 802 (Eads, Etc. v. J. & J. Sales) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eads, Etc. v. J. & J. Sales, 275 N.E.2d 802, 257 Ind. 485, 1971 Ind. LEXIS 564 (Ind. 1971).

Opinions

DeBruler, J.

An appeal in this case was taken to the Indiana Appellate Court which rendered an opinion reported as Eads, etc. v. J. & J. Sales Corp. (1971), 269 N. E. 2d 888, affirming the trial court judgment. The appellants below have petitioned this Court for transfer, which petition is now granted and the opinion and order of the Appellate Court is now ordered vacated.

Appellee-plaintiff sought a permanent injunction prohibiting appellants, The Indianapolis Police Department, Marion County Sheriff’s Department and the Indiana State Police from interfering with appellee’s maintaining and operating certain pinball machines. In order to obtain such an injunction appellee had to show it had property rights in such machines and that they were not “gambling devices” within the meaning of I.C. 1971, 35-25-1-2, being Burns §10-2330(4). Peachey v. Boswell (1960), 240 Ind. 604, 167 N. E. 48; Tinder v. Music Operating Co. (1957), 237 Ind. 33, 142 N. E. 2d 610. The trial court found for the appellee and issued a permanent injunction prohibiting appellants from interfering with appellee’s maintaining, possessing, leasing and operating pinball machines on which the sole mechanism for registering rights to replay is a meter on the front of the machine visible to the player.

Appellants’ contention on appeal is that the evidence showed that appellee’s machines were “gambling devices” within § 10-[487]*4872330 (4), and, therefore appellee did not have a property interest in the machines sufficient to justify the issuance of an injunction restraining the appellants from confiscating the machines in the course of their duties.

At the time of the trial, § 10-2330 (4) read in part as follows:

“(4) ‘Gambling device’ means any mechanism by the operation of which a right to money, credits, deposits or other things of value may be created, in return for a consideration, as the result of the operation of an element of chance. . . . Provided, That in the application of this definition an immediate and unrecorded right to replay mechanically conferred on players of pinball machines and similar amusement devices shall be presumed to be without value.”

In Peachey v. Boswell, supra, this Court held that under that statute pinball machines awarding rights to replay are gambling devices unless they come within the proviso to § 10-2330(4) and only confer “immediate and unrecorded” rights to replay. The sole issue in this case is whether Appellee’s machines “recorded” the rights to replay within the meaning of this statute.

The parties stipulated that Exhibits 1 and 2 were the type of machines handled by appellee in its business and there was no dispute over the way the machines operated. The player inserts a nickel or a dime, depending on how the machine is set up, and receives the right to play one game consisting of five balls. If the player obtains a certain score on those five balls he wins a certain number of free games or “rights to replay.” The number of rights to replay are registered on a meter on the front of the machine visible to the player. After the player has completed the game of five balls he can look at the meter and see how many games he has a right to play. The number on the meter is reduced by one each time the player plays another game. The meter records rights to free games as well as rights to any pre-paid games obtained by inserting more than the amount required for one game.

[488]*488The test to determine whether this replay meter is a recording device within the meaning of § 10-2330 (4) was set out in Peachey v. Boswell, supra, as follows:

“The clear intent of the Legislature was to prohibit the use and ‘maintaining’ of pinball machines which are equipped with recording devices that may be used to compute ‘payoffs’.” 240 Ind. at 614.

Under that test appellee’s machines are clearly “gambling devices” because they record the rights to replay in a way that may be used to compute pay-offs. The meter on the front records the number of rights to replay which the machine confers and that record is visible after the player has completed play on the five balls which make up each game. The number remains visible until the player starts another game. That record on the meter obviously “may be used to compute payoffs” from the location owner for games won and, therefore makes the machine a gambling device within § 10-2330 (4) as construed by Peachey v. Boswell, supra.

The appellee’s basic strategy in this case has been to focus attention on certain characteristics of Exhibits 3 and 4, pinball machines concededly illegal as gambling devices, and infer the legality of Exhibits 1 and 2 because of the absence of those characteristics. We do not accept this as the proper approach to this case. We must determine whether Exhibits 1 and 2 are legal by seeing if they comply with the statute and not by seeing how different they are from other admittedly illegal machines. Although we do not accept appellee’s basic approach we will deal with appellee’s specific arguments.

Exhibits 3 and 4 are “bingo” type pinball machines which give five balls for a dime and also permit the odds of winning free games to be altered by inserting more coins. This type of machine has three meters or recording devices: (1) the replay meter on the front of the machine; (b) the total play meter located inside the machine which records how many games are played on the machine; (c) the “knock-off” meter [489]*489located inside the machine which records the number of rights to replay which have been eliminated by use of a “knock-off” switch. Exhibits 1 and 2 also have the first two types of recording devices but they do not have the “knock-off” meter or the “knock-off” switch. Appellee’s argument is that the test of whether a machine is a gambling device within the meaning of the statute is the presence or absence of the knock-off meter. Appellee correctly states that if the machine has a knock-off meter recording rights of replay eliminated by the knock-off switch then it is not awarding “unrecorded” rights to replay and is, therefore, a gambling device within the statute. Appellee then erroneously concludes that if there is no record of rights to replay which have been knocked off, then there is no record of rights to replay at all and the machine is legal. Appellee offers several arguments to support its theory.

(1) Appellee: The word “record” implies permanence and the knock-off meter makes a record which lasts at least until the machine is opened and the meter read, whereas the number registered on the replay meter on the front of appellee’s machines only lasts until the next game is played.

Permanence is a relative word and how long the information recorded has to last depends upon the purpose for which the information was preserved in the first place. The replay meter indicates the number of rights to replay and this record continues to exist after the player has completed the game consisting of five balls. The record will continue to exist until the replay button is pushed and another game started, it clearly lasts long enough for the location owner to see the record and compute the pay-off. Since the information as to rights to replay lasts long enough to be used to compute a pay-off, the purpose of preserving the information has been served and it is irrelevant how permanent thereafter it may be.

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Eads, Etc. v. J. & J. Sales
275 N.E.2d 802 (Indiana Supreme Court, 1971)

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Bluebook (online)
275 N.E.2d 802, 257 Ind. 485, 1971 Ind. LEXIS 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eads-etc-v-j-j-sales-ind-1971.