People v. Shafer

160 Misc. 174, 289 N.Y.S. 649, 1936 N.Y. Misc. LEXIS 1371
CourtNew York County Courts
DecidedJuly 17, 1936
StatusPublished
Cited by24 cases

This text of 160 Misc. 174 (People v. Shafer) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Shafer, 160 Misc. 174, 289 N.Y.S. 649, 1936 N.Y. Misc. LEXIS 1371 (N.Y. Super. Ct. 1936).

Opinion

Kohlmetz, J.

For the purpose of attracting persons to the moving picture theatre of which the defendant was manager, a scheme was conducted known as bank nite, which the People claim is a lottery. The information charges that on the 12th day of June, 1936 the defendant offered “ property for disposal dependent upon the drawing of a lottery.” Briefly the details of the scheme are as follows: A book known as a registration book was placed in the lobby of the theatre and the purpose of this book was to obtain signatures of persons who desired to participate in a drawing for money donated by the theatre to the winners on the drawing and at the time of the signing of the book a number was assigned to each person who [175]*175signed the book. The persons signing paid nothing whatever for the privilege of signing and for participating in the drawing and understood thoroughly that they assumed no obligation in any shape or form. The winner was not required to purchase an admission ticket for the performance at the theatre and it was thoroughly understood that participation in the drawing was absolutely free. On each Friday night there was a drawing for a number and on June 12, 1936, the witness Slattery, who had signed the book in January, 1936, won a prize amounting to $175. Before the number was drawn the conditions under which the gift was given were thoroughly explained by the defendant to the persons in the theatre as well as to the persons in the lobby who participated in the drawing. These conditions were contained in a typewritten statement which was read to the people in the theatre prior to the drawing. This statement, which is made a part of the information in this case, specifically states that “ the purchase of a ticket of admission is not a condition to the granting of the opportunity to participate in the award. It makes no difference whether you are in or out of the theatre and if the winner should not be in the theatre he or she may come into the theatre and claim the award without any condition or requirement of any kind other than that contained in the rules.” The rules stated that it was not necessary to purchase a ticket of admission to register and that no ticket was required to claim the award. They also state specifically that the participant in the drawing assumed no obligation when he registered. In other words, the only act on the part of the participant in the drawing that was required was the signing of his name in the registration book. After the number was drawn the name and address of the winner was ascertained from the registration book and that person’s name was called in the theatre and in the lobby. If that person was present in the theatre, he received the prize. If the person was in the lobby or street, he could come into the theatre without a ticket and get his prize without an admission fee or any other or further condition. If the person was not in the theatre or in the lobby at the time his name was called, the manager waited five minutes, and if no one claimed the prize it was added to the next week’s prize.

Lottery is defined under section 1370 of the Penal Law as follows: A ‘ lottery ’ is a scheme for the distribution of property by chance, among persons who have paid or agreed to pay a valuable consideration for the chance, whether called a lottery, raffle, or gift enterprise, or by some other name.” "Under this definition there are two essential, elements which constitute lottery: First, a scheme for the distribution of property by chance; second, payment or [176]*176agreement to pay a valuable consideration for the chance. It is conceded by the parties to this action that the first element was proven on the trial so that it is only necessary for us to determine whether or not there was proof that a valuable consideration was paid or an agreement either express or implied was made to pay a valuable consideration for the chance. The trial court held that “ the rules require the presence of the winner in the lobby and require making himself known within five minutes and the court deems that it would be sufficient consideration.” I cannot agree with that interpretation of the law because I fail to see how the requirement of the presence of the participant in the theatre or lobby constitutes a payment of a valuable consideration or an agreement to pay it. In my opinion either the payment of a valuable consideration or an agreement to pay for the chance must precede the drawing. It is, therefore, necessary to consider the proof in this case as to what took place at the time the participants signed the registration book, for that was the time when the right was acquired to participate in the drawing. As already stated above, there was a distinct understanding with the people who signed the book that they would not be required to pay anything for the chance and that they would assume no obligation whatever. They are not even required to purchase a ticket of admission and the winner could go into the theatre to obtain his prize without any expense to him. The record in this case shows that there was a total lack of proof that any consideration was paid or that there was an agreement either express or implied to pay it.

The authorities seem to be in accord with these views. The principles involved in the case at bar are the same as those in the case of People v. Mail & Express Co. (179 N. Y. Supp. 640; affd., 192 App. Div. 903; affd., 231 N. Y. 586), In that case the owners of a newspaper conducted a scheme of giving away cash prizes for the purpose of increasing the circulation of the paper. The participants paid nothing for the chance to participate in the drawing. The only difference that I can find between that case and the instant case is, that the winners in the Mail & Express case were required to call at the office of the newspaper within five days to receive the prize, while in the instant case the participants were required to appear at the theatre within five minutes after the announcement that they had won. It seems to me that the case cited is an answer to the trial judge when he ruled that the requirement of the presence of the winner in the lobby and making himself known within five minutes is sufficient consideration.

There are two cases in other jurisdictions which are exactly in point because this same bank nite scheme was under consideration. [177]*177In the case of State v. Hundling (220 Iowa, 1369; 264 N. W. 608) the Supreme Court of the State of Iowa delivered a very comprehensive opinion in which the conclusion was reached that in the bank nite scheme the element of consideration was absent and held that it was not a violation of the law. The facts in that case are almost identical with those of the instant case and I am satisfied that the logic of the judge who wrote the opinion is sound. The other case in which this same scheme was considered is that of State v. Eames (-N. H.-; 183 A. 590). In that case the facts are the same as the case under consideration and the court arrived at the same conclusion. In other words, it was held that the participant did not pay a valuable consideration for the chance to participate and that the scheme, therefore, did not constitute a violation under the statute. In the opinion the court makes this statement: Regardless of the motive which induced the defendant to give such free participation, the scheme is not within the ban of the statute.

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Bluebook (online)
160 Misc. 174, 289 N.Y.S. 649, 1936 N.Y. Misc. LEXIS 1371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-shafer-nycountyct-1936.