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Friday, June 23, 2006

Ind. Gov't. - "Huge lottery payout - for lawyers"

The Indianapolis Star reports today, in a story by Diana Penner:

A dispute over a winning scratch-off ticket that would have cost the Hoosier Lottery $5 to resolve in 1997 instead will cost the agency more than $1 million.

The lottery has agreed to a proposed settlement to end the nearly decade-long fight, which evolved into a class-action lawsuit.

Here's what happened: Tom H. Smith, Indianapolis, bought a $2 "instant win" ticket in 1996, which yielded a $5 prize. He didn't instantly redeem it, though. And when he tried to collect months later, he was told he was too late.

Smith appealed to lottery headquarters, saying he had no way of knowing the game had ended. That didn't work, so he sued.

The lottery already has ponied up more than $450,000 to pay lawyers to fight the suit and now is agreeing to set up a $600,000 pot to resolve the entire matter, once and for all. * * *

Under the terms of the proposed settlement, which still must be formally approved by a judge, Smith will get $15,000 from the $600,000 fund.

There is much more to the story, including this Court of Appeals decision: George Frankl and Tom H. Smith v. State Lottery Commission of Indiana (8/5/04 IndCtApp).

Posted by Marcia Oddi on June 23, 2006 08:43 AM
Posted to Indiana Government