Ramesar v. State

162 Misc. 2d 420, 617 N.Y.S.2d 259, 1994 N.Y. Misc. LEXIS 425
CourtNew York Court of Claims
DecidedSeptember 9, 1994
DocketClaim No. 88001
StatusPublished

This text of 162 Misc. 2d 420 (Ramesar v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ramesar v. State, 162 Misc. 2d 420, 617 N.Y.S.2d 259, 1994 N.Y. Misc. LEXIS 425 (N.Y. Super. Ct. 1994).

Opinion

[421]*421OPINION OF THE COURT

Louis C. Benza, J.

This is an action for breach of contract and/or negligence which arose in connection with claimant’s purchase of a subscription to the State’s "Pick Six” lottery contest (Lotto). There is no dispute about the underlying facts insofar as they are known.

The subscription program of the New York State Lottery (the Lottery) allows individuals to select combinations of numbers which will be automatically entered in each Lotto drawing during the time period selected (15, 26 or 52 weeks) and paid for by the subscriber. According to claimant, he filled out a preprinted subscription application on May 7, 1993, indicating that he wanted, among others, the number combination 21, 26, 28, 37, 50 and 54 played over a period of 26 weeks. He also purchased a money order for $150 to pay for this subscription. Evidence of this is contained in a document which shows a copy of claimant’s application (including the receipt stub) and a United States Postal money order made out to the New York State Lottery from claimant. The subscriber receipt is dated, by hand, "5/7/93” and the code on the money order shows the same date. Claimant also states that he mailed the subscription application and money order on May 7. Although there is no documentary evidence of this fact, it is reasonable to assume that he did so. In mid-June 1993, when he had not received confirmation of his subscription, claimant called the Lottery’s subscription department and was allegedly told by Lottery employee Vincent Juliano that he should not worry, that the confirmation should arrive shortly. On July 17, 1993, the number combination of 21, 26, 28, 37, 50 and 54 were announced as the winning numbers for the Lotto Pick Six contest. The prize being awarded at that time was $10 million.

The following Monday, July 19, Bradley Siegel, an attorney and friend of claimant, called the Lottery and asked employee Ruth Santabarbara about the proper procedure to follow in claiming the prize. Siegel was told that the Lottery had no record of claimant’s subscription. Two days later, claimant’s counsel spoke with Vincent Juliano, who confirmed that the computer showed no current subscription for claimant. On July 28, 1993, claimant received the regular confirmation of his subscription, which indicated that his application had been processed on July 23, 1993 and that the chosen combination of [422]*422numbers would be played for 26 weeks beginning on August 7, 1993.

The Lottery officials mentioned above have provided affidavits in support of this motion. Vincent Juliano confirms that on or about July 19, 1993 he was contacted by claimant or someone acting on his behalf and informed the caller that the computer file showed no current subscription in claimant’s name. Juliano also states that the application and money order described by claimant as having been sent on May 7, 1993 was received by the Lottery on July 21, 1993, as indicated by a date stamp placed on the application form.2 Juliano states that such applications are usually processed and entered into the Lottery’s computer files within one to two days of receipt, and a confirmation was sent to claimant on July 27, 1993. Juliano’s affidavit contains no reference to a June 1993 conversation with claimant. In her affidavit, Santabarbara confirms the July 19 conversation with Siegel and includes a copy of the computer printout which she ran on that date. This document shows that claimant had previously had a 26-week subscription, beginning on November 4, 1992 and ending May 1, 1993, but lists no other subscription.

The court notes that the subscriber receipt form retained by claimant contains the following statement: "Allow approximately 4 weeks for processing. A confirmation notice will be mailed in advance of the start date of your subscription.” In addition, instructions on the back of the subscription application form include the following:

"Lotto Subscription Confirmation Notice
"Allow approximately four weeks for your application to be processed.
"When your application is processed, a confirmation notice will be issued indicating the start date and the numbers you have selected.
"You’ll also be notified when your subscription is about to expire so you can sign up in time to continue playing.”

DISCUSSION

Counsel for defendant moves for summary judgment dismissing the claim on two grounds: (1) that the claim is barred [423]*423by sovereign immunity and (2) that the State had no duty (contractual or otherwise) to pay claimant the proceeds of the July 17, 1993 Lotto drawing because the conditions of play had not been met. The court does not agree that any and all actions performed by the State in connection with operation of the Lottery are insulated by sovereign immunity simply because the Legislature failed to expressly waive such protection or because "no court has ever held that the State’s limited waiver of sovereign immunity applies to Lottery operations”.3 Even if operation of the Lottery is viewed as a purely governmental activity, there are recognized exceptions to the immunity accorded such endeavors (see, Boland v State of New York, 161 Misc 2d 1019 [Benza, J.]).

On the other hand, the rules and regulations governing operation of the Lottery contain provisions which so severely limit a player’s remedy in the event of disputes about winning tickets as to effectively immunize the State from liability in this regard. 21 NYCRR 2817.5 provides as follows: "Disputes: In the event a dispute occurs between the Lottery and/or the contractors and the player as to whether a ticket is a winning ticket, and if the ticket prize is not paid, the director may, if he considers there is no doubt, refund the entry cost of the panels played by the player on that ticket. This shall be the sole and exclusive remedy of the player of the ticket.” When a prize is paid to a player, even if the player contends that he or she was entitled to a larger amount, the State and its agents are discharged of liability by 21 NYCRR 2803.6 (see, Craft v Capital Dist. Regional Off Track Betting Corp., 107 AD2d 952, 954). The State’s insulation from liability, therefore, is virtually complete.

The Court of Appeals has held that Lottery players are bound by the administrative rules regulating authorized gambling, including rules exempting the State and its agents from liability on disputed ticket claims (Molina v Games Mgt. Servs., 58 NY2d 523, 528-529; Fujishima v Games Mgt. Servs., 110 Misc 2d 970). In Molina, a player purchased a Lottery ticket at a donut shop and marked it with the combination of numbers subsequently picked in the weekly drawing. However, the original of her ticket was not delivered by the sales agent to Lotto Central, headquarters of the private firm which operated the Lotto contest at that time. Pursuant to the [424]*424regulations then in force, no ticket could be deemed a winning ticket unless it was delivered to and microfilmed at Lotto Central prior to the drawing. 21 NYCRR former 2817.11 provided, in relevant part:

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Related

Caplan v. New York State Department of Taxation & Finance
296 N.E.2d 251 (New York Court of Appeals, 1973)
Peri v. State
397 N.E.2d 1332 (New York Court of Appeals, 1979)
Molina v. Games Management Services
449 N.E.2d 395 (New York Court of Appeals, 1983)
Peri v. State
66 A.D.2d 949 (Appellate Division of the Supreme Court of New York, 1978)
Craft v. Capital District Regional Off Track Betting Corp.
107 A.D.2d 952 (Appellate Division of the Supreme Court of New York, 1985)
Fujishima v. Games Management Services
110 Misc. 2d 970 (New York Supreme Court, 1981)
Boland v. State
161 Misc. 2d 1019 (New York State Court of Claims, 1994)

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Bluebook (online)
162 Misc. 2d 420, 617 N.Y.S.2d 259, 1994 N.Y. Misc. LEXIS 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramesar-v-state-nyclaimsct-1994.