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Michael Kovacs v. State of Illinois

65 Ill. Ct. Cl. 227 Illinois Court of Claims Filed 2013-04-17 No. 11-CC-3067
Disposition: (No. 11-CC-3067 - Claim denied) Agency: Illinois Lottery
Cite as: Michael Kovacs v. State of Illinois, 65 Ill. Ct. Cl. 227 (2013)
General Court of Claims 65 denied 2010s Michael Kovacs v. State of Illinois 65 Ill. Ct. Cl. 227 2013-04-17 (No. 11-CC-3067 - Claim denied) /opinions/v65-p0227-1/

MICHAEL KOVACS, Individually and In representative capacity on behalf of All those similarly situated, Claimant, v. STATE OF ILLINOIS, Respondent.

Case summary

Claimant sought damages for a disputed lottery ticket prize. The court granted the State's motion to dismiss because the lottery game rules provided the exclusive remedy of ticket replacement, and claimant had not exhausted that administrative remedy.

Claim type: Other

Statutes cited: 705 ILCS 505/25

Cases cited: Loane v. Illinois, 59 Ill. Ct. Cl. 325, 2006 WL 6499135

AI-generated summary from the opinion text — may contain errors. The opinion text and PDF above are the official record.

Headnotes

  1. Court of Claims Act- Availability of Other Remedies- Before seeking final determination of their claim in the Court of Claims, a person is required to exhaust all other remedies and sources of recovery whether administrative or judicial.

ORDER

Birnbaum, J.

THIS MATTER is before the Court on Respondent’s Motion to Dismiss filed on December 7, 2011, pursuant to 2-615(a) and 2-619(a) of the Illinois Code of Civil Procedure and Section 25 of the Court of Claims Act. 705 ILS 505/25.

On April 23, 2011, Claimant filed a Motion for Class Certification.

Subsequently, on March 12, 2012 this Court ordered Claimant’s Motion for Class Certification to be held in abeyance pending ruling on Respondent’s Motion to Dismiss. Nature of the Claim

On March 11, 2011, Claimant filed a complaint in this Court seeking damages as a result of the purchase of Illinois Lottery Ticket “Winter Bingo”, game number 754.

Claimant paid five-dollars ($5.00) for a “Winter Bingo” scratch-off lottery ticket.

The bingo numbers revealed a blue mitten symbol.

This blue mitten symbol indicated a fifty-dollar ($50.00) winning prize.

Claimant asserts that he presented what he thought to be his winning scratched-off ticket to a retail lottery agent.

The

lottery agent denied awarding the fifty-dollar ($50.00) winning prize.

Claimant

alleges Respondent violated Illinois Lottery’s “Winter Bingo” game rules in its failure to award Claimant, and other similarly situated, their fifty-dollar ($50.00) prize award, or, in the alternative, reimburse Claimant for the price of the “Winter Bingo” lottery tickets.

In addition to monetary damages, Claimant seeks a temporary restraining order, a temporary injunction, and a permanent injunction against Respondent.

In its Motion to Dismiss, Respondent asserts that Claimant has failed to satisfy this Court’s exhaustion of remedies requirement and Claimant is not entitled to any legal recourse outside reimbursement or the issuance of a new lottery ticket.

Specifically, Respondent argues Claimant failed to present his claim to the Illinois Lottery and receive the only remedy available under the “Winter Bingo” Game Rules: an unplayed ticket, or tickets, of comparable value.

Conversely, Claimant

argues he was never advised by the Illinois Lottery of the administrative dispute [*228] procedures under the “Winter Bingo” Game Rules and he has already requested, and been denied, a five-dollar ($5.00) reimbursement for the “Winter Bingo” lottery tickets.

Pursuant to Court of Claims Rule 790.140, Respondent filed Respondent’s Department Report on December 7, 2011.

74 Ill. Adm. Code 790.140.

The

Departmental Report provided the “Winter Bingo” Game Rules which state in pertinent part:

DISPUTES

In the event a dispute between Lottery and the ticket bearer occurs as to

whether the ticket is a winning ticket, and the ticket prize is not paid, the

Acting Superintendent or Director may, solely at his/her option, replace the

disputed ticket with an unplayed ticket (or tickets of equivalent sales price

from another current Lottery game).

This shall be the sole and exclusive

remedy of the bearer of the ticket in the event of such disputes.

GOVERNING LAW

In purchasing a ticket, the purchaser agrees to comply with, and abide by,

Illinois State law, all rules and regulations of the Lottery and all Directives,

procedures and final decisions rendered by the Acting Superintendent or the

Director for the conduct of the game. Illinois Lottery Office of the Superintendent Instant Game Rules: “Winter Bingo”, pg. 3.

Analysis

In its Class Action Complaint, Claimant specifically states that it has not previously presented this claim to a State department or officer thereof.

Thus, as Respondent alleged, Claimant has failed to present this claim to the Illinois Lottery Claims Department and seek the remedy available under the “Winter Bingo” Game Rules.

Section 25 of the Court of Claims Act states, “Any person who files a claim in the court shall, before seeking final determination of his or her claim, exhaust all other remedies and sources of recovery whether administrative or judicial. ILCS 505/25.

Claimant argues he has pursued the Court of Claims exhaustion of administrative remedies requirement because he was already denied a reimbursement for the “Winter Bingo” lottery tickets.

However, Claimant

misinterprets a denied reimbursement with the sole remedy available pursuant to the “Winter Bingo” Game Rules.

As previously stated, under the “Winter Bingo” Game Rules, the Acting Superintendent or Director of the Illinois Lottery has the sole discretion to replace the disputed ticket with an unplayed ticket or a ticket of equivalent sales value. This Court addressed a similar fact pattern in a 2006 case, Loane v. Illinois, 59 Ill. Ct. Cl. 325, 2006 WL 6499135.

In Loane v. Illinois, Claimant sought forty-five thousand dollars ($45,000.00) in winnings from what he claimed was a winning lottery ticket.

The Lottery Claims Department denied his claim and awarded Claimant a three-dollar ($3.00) ticket, equivalent to the sale price of his original ticket.

The Leone Court held that Claimant had agreed to the terms of the Game Rules governing dispute resolutions through the purchase of his lottery ticket.

Thus, the Court held there was no other remedy that Claimant could request from the Court of Claims for the disputed ticket.

Id. at 326.

In this case, although Claimant allegedly has been denied reimbursement, the “Winter Bingo” Game Rules [*229] require that he present his dispute to the Illinois Lottery Claims Department where the Acting Superintendent of the Illinois Lottery may, solely at his/her option, replace Claimant’s “Winter Bingo” ticket with an unplayed ticket of similar sale value.

This Court finds that the terms of the Game Rules for the “Winter Bingo” Scratch-off game #754 are clear and unambiguous.

By purchasing the “Winter Bingo” lottery ticket, Claimant agreed to the contractual terms of the “Winter Bingo” Game Rules, including the established rules governing dispute resolution.

Accordingly, as Claimant agreed to the terms of the Game Rules, the terms of the Game Rules control and there is no other remedy that Claimant may pursue from this Court for the disputed ticket.

IT IS HEREBY ORDERED that Respondent’s Motion to Dismiss is GRANTED.

Official volume 65 (Official Reports of the Illinois Court of Claims For: Fiscal Year 2013 – July 1, 2012–June 30, 2013)  ·  All opinions in this volume

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