Harrington v. Halliday

4 Ohio N.P. (n.s.) 281, 17 Ohio Dec. 40, 1906 Ohio Misc. LEXIS 74
CourtCourt of Common Pleas of Ohio, Franklin County, Civil Division
DecidedApril 17, 1906
StatusPublished
Cited by1 cases

This text of 4 Ohio N.P. (n.s.) 281 (Harrington v. Halliday) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Franklin County, Civil Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrington v. Halliday, 4 Ohio N.P. (n.s.) 281, 17 Ohio Dec. 40, 1906 Ohio Misc. LEXIS 74 (Ohio Super. Ct. 1906).

Opinion

Bigger, J.

The case is submitted to the court upon general demurrer by the plaintiff to the second, third and fourth defenses o£ the answer of the defendant. The action is brought by the plaintiff under the provisions of Section 271 of the Revised Statutes of Ohio, to recover the sum of $1,116.80, alleged to have been expended by the plaintiff and paid to the defendants, and that the money was expended by the plaintiff in the purchase from defendants of certain hazards or chances, called by the defendants certificates, commonly known as debentures. Plaintiff’s prayer is that she may recover the said sum, $1,116.80, together with $500 as exemplary damages as authorized by the said Section 4271 of the Revised Statutes.

The defendants answered jointly. The first defense is a general denial. The second defense and the first defense demui’red to sets forth the organization of a company known as the Cincinnati Debenture Company under the laws of the state [282]*282of West Virginia, and the purposes of its organization and the issue to the. company of a certificate by the secretary of state of this state, authorizing it to do business in Ohio. That the name of the said corporation was afterwards changed to the Ohio Debenture Company, and the location of its principal office changed from Cincinnati to Columbus. That from its organization the said company engaged in the business of selling certificates or debentures, and that it continued in such business until about the 10th day of March, 1901.

Defendants then stated that certain certificates or debentures were purchased by the plaintiff and that the plaintiff paid at the time of the purchase for each of said tickets or debentures, the sum of five dollars, as an initial membership fee for the first month and that she thereby became a member and owner of said corporation and said business; that she thereafter paid to the said corporation further sums of money in amounts and on dates unknown to the defendants, at the rate of twenty cents per month for, each ticket or certificate, until the redemption of certain certificates, and until receivers were appointed for said corporation and the business wound up by said receivers. That other like tickets or certificates were purchased by other persons from the said corporation, and that various sums of money were by them paid, from time to time, to the said corporation on account of these tickets or certificates, and that the money so paid by the plaintiff and other persons, to the said corporation on account of said tickets or certificates or debentures, was divided and apportioned among other members and holders of certificates which were selected and eligible for redemption.

The answer then states the method by which the debentures selected for redemption were determined, and that the selection of these tickets or debentures for redemption was necessarily dependent upon uncertain and indeterminate events; that plaintiff had full knowledge of each and all of these facts and of the manner in which the business was conducted; that the plaintiff as a holder of said certificates or debentures had a direct interest in said business conducted by the said corporation, and in the profits derived'therefrom, and in the several [283]*283sums of. money paid by other holders of certificates to the said corporation for the purchase of said certificates; that the plaintiff was a member of the said company, and owner of an interest therein for a long time, and down to the time of the receivership and winding up of the corporation, and was a direct participant in, and part owner of the said business, and of the funds accumulated by the said company in the conduct of its business.

The demurrer raises the question, do these statements, if established by proof, constitute a defense to the cause of action stated in the petition? The statute in question, Section 4271 of the Revised Statutes, and under the provisions of which the plaintiff claims a right to recover in this action, reads as follows:

“A person who expends any money or thing of value or incurs any obligation for the purchase of or to procure any lottery or policy ticket, hazard or chance, or any interest therein, or on account of any lottery, policy, or scheme of chance, or in or on account of any game of faro, pool or combination, keno or scheme of gambling, and any person dependent in any degree for support upon, or entitled to the earnings of such person, and any citizen for the use of the person so interested, may sue for and recover from the person receiving such money, thing of value or obligation, the amount thereof, together with exemplary damages which in no case shall be less than fifty nor more than five hundred dollars, and may join as defendants in suit all persons having an interest, direct or contingent, in such lottery, policy or scheme of chance, 'or the possible profits thereof as backers, vendors, owners or otherwise. ’ ’

The defendants under this defense seek to establish, as a fact, that the plaintiff was herself directly interested as a part owner and sharer in the profits of this lottery scheme, and that as such part owner and sharer in the profits she is not entitled to maintain an action to recover from others jointly interested with her in the illegal enterprise.

That the scheme here disclosed is a lottery is admitted by both sides, and the question has been definitely settled by the decision of the Supreme Court in the case of The State, ex rel, [284]*284v. The Interstate Savings Investment Company, 64th O. S., page 283. The language of the statute is:'

“A person who accepts any money * * * or’incurs any obligation for the purchase of or to procure any lottery or policy ticket, hazard or chance or any interest therein * * * may sue for and recover from the person receiving such money * * * the amount thereof,” etc.

Now, the person receiving plaintiff’s money, the demurrer admits, was the corporation known as the Ohio Debenture Company, an artificial person, and that the plaintiff was a part owner by virtue of her ownership of these certificates of the corporation and its business. The business being conducted by this corporation was a business contrary to public policy and the statute law of this state. It was an illegal business, both at common law and under the statute, and as such all persons concerned in such business were in particeps criminis and in pari clelicto, for the law does not undertake to determine the relative degree of obliquity of those who are concerned in such illegal transactions. That being true, neither at common law nor under the statute law of this state would the courts lend their aid to any of the participants.- If the plaintiff has any right of action it must be by reason of the statutory provision and that statutory provision being in contravention of the common law must be strictly construed. Upon this point Judge Scott says, in the case of Hooker et al v. De Palos et al, 28th O. S., at page 261:

“Such statutes are a recognition of the established rule that no recovery could be had in such cases at common law. They are exceptional in their character, are in contravention of the common law, and therefore are to be construed strictly and not extended by implication beyond the particular cases of illegality for which they provide.”

The language of the statute is that such action may be brought against the person receiving money, which in this case was the corporation.

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Bluebook (online)
4 Ohio N.P. (n.s.) 281, 17 Ohio Dec. 40, 1906 Ohio Misc. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrington-v-halliday-ohctcomplfrankl-1906.