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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsState of Illinois committing FRAUD!
This is a clear case of fraud. The lottery is a contract. If you win, the state must pay you in a timely manner. As it is not doing so, the winners not being paid have a civil case for fraudulent claims by the state of Illinois. Moreover, should there be a failure to pay on any multi-state lotteries, there will be a breach of contract with the multi-state lottery foundations. I see a clear cut case for punitive damages as well as interest for late payments here:
CHICAGO (CBS) — The Illinois Lottery says big winners since July 1st aren’t getting any money yet because there’s no state budget, meaning the state has no legal authority to pay out lottery winnings.
The good news is: You won the lottery.
“It was a happy day. My husband was really excited. I thought he was going to have a heart attack,” said 73-year-old Helen Whitfield of Bourbonnais.
The bad news is: It may be awhile before you’re paid.
“I don’t think it’s fair. They should have that money in there if somebody hits it,” she said.
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PoliticAverse
(26,366 posts)According to the article "the state has no legal authority to pay out lottery winnings.".
I can see them paying interest on amount payed eventually though.
MohRokTah
(15,429 posts)If the state has no legal authority to pay off lottery winners at this time, then continuing the sale of lottery tickets while it has no legal authority to pay winners is fraud.
The only way to avoid the fraudulent activity would have been to cease the sale of all lottery tickets statewide from midnight July 31, 2015 until a budget is passed.
branford
(4,462 posts)The state will eventually pay, and the lottery winners will be due interest on the late payments.
MohRokTah
(15,429 posts)The first ticket sold after midnight on July 31 was an at of fraud.
The Comptroller should have directed all lottery ticket outlets to cease the sale of all lottery tickets the moment the state no longer had legal authority to pay winners.
branford
(4,462 posts)as inability to pay or not having the good faith intention to pay which would likely be required for a claim of fraudulent inducement under the laws of most states (I'm a commercial litigator in NYC). Additionally, apart from any disclaimers likely contained on the lottery ticket itself or statutory protections provided by and for the state, it would be difficult to argue that any potential defendant didn't know or should know that a lack of a state budget, a not uncommon occurrence, could delay payment.
In any event, the lottery winners since July will be paid with interest, and this matter will never see the inside of a courtroom.
MohRokTah
(15,429 posts)If my bank account is overdrawn, I have no legal authority to pay on a check. If a write a check and it bounces, within four weeks I'll be picked up and charged with check fraud.
branford
(4,462 posts)you lack the capacity to pay your debts. To the extent relevant, you still have legal authority to pay.
The pertinent issue with regard to fraud (or more properly in this instance, fraudulent inducement), is whether you intended to bounce the check and did the payee know or should know that the check might bounce.
"Fraud" and "fraudulent inducement" are legal terms and causes of action that have very specific requirements to successfully prosecute, both civilly and criminally. As a practical matter, attorneys bring such claims over more simple actions (although both are usually pleaded concurrently) in order to seek punitive and related damages, which would almost certainly not be available to a hypothetical plaintiff against the state under these circumstances in the event of a lawsuit.
