Clark v. Missouri Lottery Commission

463 S.W.3d 843 (2015)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

State Lottery Law prohibits the assignment of lottery prizes. P won the Missouri Lottery 'Lifetime Riches' prize. P was to receive $50,000.00 per year for the rest of his life with a minimum payout of thirty years. P entered into a loan agreement with D where P granted D a security interest in the 'Assignment of all Missouri Lottery Payments' in exchange for a $100,000.00 loan. P executed a document titled 'Missouri Lottery Payments' in which he agreed 'to have all funds from the Missouri Lottery be deposited in an account' at D 'for the purpose of securing payment of each and every debt, liability, or obligation of every type or description which P may now, or at any time hereafter owe to' D. D was given full authority and withdrawal rights on the account and P 'may not revoke this agreement.' The Missouri Lottery acknowledged the agreement. P executed a second loan agreement with D in exchange for a $713,670.96 loan. P agreed to make twelve installment payments of $500.00 and one final balloon payment of $708,170.96 on July 15, 2011. P filed a petition for declaratory judgment against D and the Missouri Lottery Commission. P claimed the agreement constituted an unlawful assignment of lottery proceeds and was void. D alleged that the agreement was a lawful assignment under § 9-406. D filed a motion for summary judgment. P contends § 313.285 prohibits the assignment of lottery proceeds thereby making the assignment void. The court ruled for D and P appealed.