Minges v. City of Birmingham

36 So. 2d 93, 251 Ala. 65, 1948 Ala. LEXIS 665
CourtSupreme Court of Alabama
DecidedJune 10, 1948
Docket6 Div. 704.
StatusPublished
Cited by11 cases

This text of 36 So. 2d 93 (Minges v. City of Birmingham) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minges v. City of Birmingham, 36 So. 2d 93, 251 Ala. 65, 1948 Ala. LEXIS 665 (Ala. 1948).

Opinion

LIVINGSTON, Justice.

Appellants are engaged in the business of bottling, selling and distributing-a soft drink known as Pepsi-Cola. They purchase from the Pepsi-Cola Company of New York certain syrup or other ingredients which are used by appellants in their business. In order to stimulate and increase the sale of Pepsi-Cola by appellants and other bottlers and distributors, the Pepsi-Cola Company of New York is now engaged in an extensive advertising campaign *68 in the form of contests known as “Treasure Top” contests. Appellants are participating in, managing, directing and conducting such contests in Birmingham, Jefferson County, Alabama.

Appellees insist that the “Treasure Top” contests now being conducted are in violation of section 65 of the Alabama Constitution of 1901, and State statutes, as well as ordinances of the City of Birmingham passed in pursuance of said section 65.

This appeal is from a decree of the Circuit Court, in Equity, of Jefferson County, denying to appellants a temporary injunction, restraining and enjoining appellees from arresting appellants or any agent, servant or employee of appellants, who may participate in such contests, and from interfering in any way with appellants in carrying on said contests.

The application for temporary injunction was submitted to the lower court on a sworn bill of complaint, and supporting affidavits. As disclosed by appellants’ bill of complaint, and the supporting affidavits, appellants and the Pepsi-Cola Company of New York have heretofore extensively advertised the merits of Pepsi-Cola as a soft drink, and have engaged in' extensive advertising campaigns, which have had the effect of stimulating, encouraging and increasing the sale of Pepsi-Cola, all of which has increased appellants’ business and inured to appellants’ benefit and to the benefit of appellants’ business. The bill avers that the “Treasure Top” contests' complained of by appellees do not constitute in any respect a lottery or a scheme in the nature of a lottery, and do not in any respect violate any statute of the State of Alabama or any ordinance of the City of Birmingham having to do with lotteries, or any other statute or ordinance; that such contests are in all respects lawful and constitute a legitimate method of advertising, stimulating, encouraging and increasing the sale of Pepsi-Cola by appellants in their legitimate business in the City of Birmingham; that appellees, unless enjoined from so doing, will wrongfully and unlawfully arrest or cause to be arrested appellant L. D. Minges and any agents, servants or employees of appellants .who may participate in such contests, and that appellant L. D. Minges and such agents, servants or employees of appellants will be wrongfully and unlawfully deprived of their liberty, and appellants’ business will be irreparably injured and damaged by such acts on the part of appellees.

The “Treasure Top” contests are conducted as follows: Anyone may enter the contest by sending to the Pepsi-Cola contest post office box in New York a statement in twenty-five words or less completing the sentence “Pepsi-Cola hits the spot because * * * The entry must contain the name and address of the contestant, the -name of the head of the contestant’s family, and the name and address of the Pepsi-Cola dealer who assisted the contestant. Cash prizes are awarded on the basis of aptness, originality and interest of the statements submitted. All entries are judged by the impartial judging staff of the Rueben H. Donnelly Corporation, an independent, nationally known contest judging organization. Under the cork of every Pepsi-Cola bottle top, which is known as a “Treasure Top,” there is imprinted a special design. The first series of designs, of which there are forty-eight, are the insignia of various Army divisions and groups. Each entry in the contest must be accompanied by one of the Pepsi-Cola “Treasure Tops” and a notation of the number of such tops the contestant has collected. There is a treasure top on each bottle of Pepsi-Cola.

The entries are never received nor examined by the Pepsi-Cola Company. They are all taken from the post office box and judged by the Rueben H. Donnelly Corporation. The Reuben H. Donnelly Corporation has established and set up carefully designed objective standards for use by the judges who pass upon the various entries in the contests here involved. There are four different sets of judges, these being the preliminary, the junior, and senior and the executive judges. All the judges are specially trained and qualified for this judging work. Before a winning entry is finally selected, it must be examined and passed upon favorably by the fou'r separate and distinct sets of judges. The entries from each state and the District of Columbia are treated each month *69 as separate contests, monthly winners being selected from each state and the District of Columbia. There are also national prizes which are awarded to the three best entries from the forty-eight states and the District of Columbia first prize winners in each monthly contest. The monthly national prizes are: first prize $1,000; second prize $500; third prize $250. The monthly prizes in each state are: first prize $100; second prize $50; third prize $25; fourth to tenth prizes, each $10; next- forty-one prizes, each $5. The monthly contests extend over a period of six months from January 1, 1948 to June 30, 1948. For each entry submitted a contestant receives one hundred points. Each winner of a monthly national or state prize also receives an additional one hundred points. The one hundred families receiving the largest number of points during the course of the six monthly contests may, at the conclusion of all such monthly contests, participate in what is known as the “Family Sweepstakes Contest”. Such one hundred families then submit one statement of fifty words or less on the subject of “How the Sales of Pepsi-Cola Can be Increased.” They are assisted by their Pepsi-Cola dealer in preparing such statement, and must submit such dealer’s name and address on that entry. The winning entries in the family sweepstakes contest are determined upon the basis of aptness, originality and sincerity of the statements submitted, and the awards are made by the same judges on the same basis in the same manner as are the awards in the monthly contests. The family sweepstakes prizes are: first prize $25,000; second prize $5,000; third" prize $2,000; fourth prize $1000; fifth prize $500; and thirty-five prizes, each $100.

The sole question presented is whether the said “Treasure Top” contests constitute lotteries, gift enterprises or schemes in the nature of a lottery.

In this State the public policy is emphatically declared against lotteries of any scheme in the nature of a lottery, both by Constitution and by statute. Johnson v. State, 83 Ala. 65, 67, 3 So. 790; Try-Me Bottling Co. et al. v. State, 235 Ala. 207, 178 So. 231-234; In re Opinion of the Justices, 249 Ala. 516, 31 So.2d 753.

In Grimes v. State, 235 Ala. 192, 178 So. 73, 74, this Court in defining a lottery said, “Without dispute a lottery has three elements: (1) A prize, (2) awarded by chance, (3) for a consideration”.

■Clearly the elements of prize and consideration are present here. Try-Me Bottling Co. et al. v. State, supra; Grimes v. State, supra. Are the prizes awarded by chance as that term is used in connection with lotteries, gift enterprises or schemes in the nature of lotteries?

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Bluebook (online)
36 So. 2d 93, 251 Ala. 65, 1948 Ala. LEXIS 665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minges-v-city-of-birmingham-ala-1948.