Parsons v. South Dakota Lottery Commission

504 N.W.2d 593, 1993 S.D. LEXIS 101
CourtSouth Dakota Supreme Court
DecidedAugust 4, 1993
Docket17994
StatusPublished
Cited by34 cases

This text of 504 N.W.2d 593 (Parsons v. South Dakota Lottery Commission) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parsons v. South Dakota Lottery Commission, 504 N.W.2d 593, 1993 S.D. LEXIS 101 (S.D. 1993).

Opinions

HURD, Circuit Judge

(on reassignment).

Ron Parsons, Jr. and George Z. Peterson appeal from the trial court’s order denying their cross-motion for summary judgment and granting summary judgment to the South Dakota Lottery Commission, Susan Walker, Ionia Klein, Michael Dacy, Diane Dacy, Scott M. Anshutz, Julie A. Anshutz, Dacshutz, Inc., and Robin Parsons. We affirm.

FACTS

This appeal involves a dispute over the proper ownership of a $12.4 million winning lottery ticket. The underlying facts of this case have previously been before this Court and will be only briefly recounted here. See Dacy v. Gors, 471 N.W.2d 576 (S.D.1991).

Robin Parsons (Robin) was clerking at Mr. G’s, a convenience store in Gregory, South Dakota, on April 4, 1991. An unknown customer ordered a $5 “Quick-Pick” 1 ticket for the Lotto*America drawing. The customer refused the ticket, buying instead a $5 ticket entitling him to play five different sets of numbers on the April 6th drawing. Robin placed the rejected $5 ticket on the till for sale to the public.

The refused ticket remained unpurchased prior to the April 6th drawing and was discovered by Ionia Klein (Klein) when she arrived to work on April 7, 1991. Realizing that the ticket held the winning numbers, Klein placed $5 in the store cash box and signed the ticket. On April 9, 1991, the South Dakota Lottery Commission (Commission) verified the ticket and declared Klein to be the holder and owner of the ticket.

On April 11, 1991, the owners of Mr. G’s2 filed suit against Klein alleging that they were the actual holders of the winning ticket and entitled to the prize proceeds. The owners and Klein later entered into a court approved settlement.

In addition on April 25, 1991, Robin filed suit against Klein and the owners of Mr. G’s claiming she was entitled to ownership of the ticket since she had mistakenly printed it. Her lawsuit was dismissed and is currently on appeal to this Court.

[595]*595On June 7, 1991, Ron Parsons, Jr. (Parsons) filed this suit on behalf of himself and others similarly situated, seeking declaratory relief that would reverse the Commission’s decision declaring Klein entitled to the proceeds from the April 6, 1991, Lotto*America drawing. The circuit court entered an order adding George Z. Peterson (Peterson) as a named plaintiff on July 31, 1991, and on January 28, 1992, allowed Parsons and Peterson to amend their complaint. As amended, the complaint again sought declaratory relief under SDCL ch. 21-24 and alleged that none of the defendants presented a valid claim to the proceeds of the Lotto*America drawing. Parsons and Peterson therefore requested that the prize proceeds be returned to the Lotto*America prize pool for redistribution.

Following discovery, Klein and the owners of Mr. G's moved for summary judgment dismissing the complaint. Parsons and Peterson, agreeing that there were no genuine issues of material fact, filed a cross-motion for summary judgment. The circuit court denied Parsons’ and Peterson’s cross-motion for summary judgment and granted summary judgment to Klein and the owners of Mr. G’s on grounds that Parsons and Peterson lacked standing to challenge the Commission’s decisions and that sufficient consideration was given for the winning ticket.

Because we hold that Parsons and Peterson did not have standing to challenge the decision of the Commission, we do not reach the issue of consideration.

ANALYSIS

Generally, for a litigant to have standing to bring an action before the court, the litigant must “show that he personally has suffered some actual or threatened injury as a result of the putatively illegal conduct of the defendant.” Gladstone, Realtors v. Bellwood, 441 U.S. 91, 99, 99 S.Ct. 1601, 1608, 60 L.Ed.2d 66, 76 (1979).

Parsons and Peterson do not argue that they have personally suffered any actual or threatened injury; rather, they allege that they have standing as taxpayers to challenge the distribution of lottery winnings and thus need not suffer a special injury to pursue their action. In South Dakota “a taxpayer need not have a special interest in an action or proceeding nor suffer special injury to himself to entitle him to institute an action to protect public rights.” State v. Kelly, 65 S.D. 345, 347, 274 N.W. 319, 321 (1937). See also Torigian v. Saunders, 77 S.D. 610, 615, 97 N.W.2d 586, 589 (1959); Lien v. Northwestern Engineering Co., 74 S.D. 476, 479, 54 N.W.2d 472, 474 (1952); White Eagle Oil & Refining Co. v. Gunderson, 48 S.D. 608, 618, 205 N.W. 614, 618 (1925). Thus, to have standing, Parsons’ and Peterson’s action must seek to protect a “public right.” State ex rel. Adkins v. Lien, 9 S.D. 297, 299, 68 N.W. 748, 749 (1896).

This Court has recognized a “public right” where a plaintiff seeks relief from a public official who is compelled by South Dakota law (public duty) or where a plaintiff seeks to protect public funds. See Danforth v. City of Yankton, 71 S.D. 406, 413, 25 N.W.2d 50, 54 (1946) (public duty-construction of toll bridge); Kanaly v. State by and through Janklow, 368 N.W.2d 819, 827 (S.D.1985) (public funds— changing state university to minimum security prison). Parsons and Peterson do not assert that, they are challenging a public duty; rather, Parsons and Peterson allege their lawsuit involves public funds.

Public funds are those funds which have been obtained through taxation and are part of the general funds of the state.

The term “public funds” means funds belonging to the state or to the county or political subdivision of the state; more specifically taxes, customs, moneys, etc., raised by the operation of some general law, and appropriated by the government to the discharge of its obligations, or for some public or governmental purpose; and in this sense it applies to the funds of every political division of the state wherein taxes are levied for public purposes. The term does not apply to special funds, which are collected or voluntarily contributed, for the sole bene[596]*596fit of the contributors, and of which the state is merely the custodian.

Pokorny v. Wayne County, 322 Mich. 10, 33 N.W.2d 641 (1948) (quoting 50 C.J. Public § 40 (1930)) (emphasis added). See also State v. Igoe, 340 Mo. 1166, 107 S.W.2d 929, 933 (1937); Allen v. City of Omaha, 136 Neb. 620, 286 N.W. 916, 919 (1939). Lottery funds distributed as winnings are not public funds, but rather are special funds collected from lottery players. This action, thus, does not affect every taxpayer in the state,3 but rather affects only persons playing the lottery.

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504 N.W.2d 593, 1993 S.D. LEXIS 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parsons-v-south-dakota-lottery-commission-sd-1993.