Dickerson v. Deno - 770 So. 2d 63

Rule:

Ala. Code § 8-1-150 (1975) specifically provides that all contracts founded in whole or in part on a gambling consideration are void.

Facts:

Plaintiff co-workers filed a declaratory judgment action seeking to determine their rights to a percentage of defendant ticketholder's winning Florida lottery ticket. The plaintiffs alleged that the parties orally contracted with each other that if any one of them should win, then the winner should share any lottery winnings with the other ticket recipients. Defendant filed a motion to dismiss the complaint, alleging that the enforcement of any oral agreement would be barred by the Statute of Frauds. She also averred that any oral agreement made by the parties was a gambling contract and could not be enforced under Alabama law. The trial court refused to dismiss the complaint and ruled for the plaintiffs. According to the trial court, there was an oral contract between the parties and that each party was entitled to 20% of the proceeds of defendant's ticket. Defendant appealed, contending that the alleged oral agreement testified to by the plaintiffs was unenforceable because it lacked the necessary elements of a valid and enforceable contract. She further argued that, assuming, arguendo, that the alleged oral agreement did have all the elements ordinarily necessary for a contract, it was void as a gambling contract under Ala. Code § 8-1-150 (1975).

Issue:

Should the holder of a winning Florida lottery ticket share part of his winnings on the basis of a prior oral agreement?

Answer:

No.

Conclusion:

The Court reversed the trial court’s decision, holding that although there was an oral agreement between the parties, that agreement was unenforceable and void because it was founded on a gambling consideration under Ala. Code § 8-1-150 (1975). The Court noted that under Ala. Code § 8-1-150 (1975), all contracts founded in whole or in part on a gambling consideration were void.