Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Texas Lottery Commission v. FirstStateBank of Dequeen, Stone Street Capital, Inc.

A Texas Lottery prize winner assigned his final two annual installment prize payments as part of a financial arrangement by which he was to pay a bank debt. The Lottery Commission refused to recognize the assignment because the Lottery Act, in direct conflict with the Texas Uniform Commercial Code (UCC), prohibits assignments of installment payments due within the final two years of the prize payment schedule. Sections 466.406 and 466.410 of the Texas Lottery Act are ineffective to the extent they restrict or prohibit the prize winner's assignment. Therefore, the trial court and court of appeals were correct in holding that the UCC prevailed and the assignments were permitted. Texas Supreme Court, No. 09-11026, 10-04-2010

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Argued December 16, 2009

This case arises because provisions of the Texas Uniform Commercial Code (UCC) and the Texas Lottery Act conflict as to whether installment payments of a lottery prize are assignable. The primary issues are whether the Commission has sovereign immunity from suit and whether the Lottery Act’s prohibition against transferring the last two installments of a prize are negated by the UCC.

Cletius Irvan, a Texas Lottery prizewinner, assigned his final two annual installment prize payments as part of a financial arrangement by which he was to pay a bank debt. The Lottery Commission refused to recognize the assignment because the Lottery Act prohibits assignments of installment payments due within the final two years of the prize payment schedule. Irvan and other parties to the assignment sought a declaratory judgment that the UCC permits such assignments and specifically renders conflicting provisions of the Lottery Act ineffective. The trial court and court of appeals held that the UCC prevailed and the assignments were permitted. We agree and affirm the court of appeals’ judgment.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
Complex Claims & Litigation Forum 2025
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More
Legalweek Leaders in Tech Law Awards 2025
March 24, 2025
New York, NY

Recognizing innovation in the legal technology sector for working on precedent-setting, game-changing projects and initiatives.


Learn More
Legalweek New York 2025
March 24, 2025 - March 27, 2025
New York, NY

Legalweek New York explores Business and Regulatory Trends, Technology and Talent drivers impacting law firms.


Learn More
Go to Events Go to Webcasts
Legal Administrative Assistant

Legal Administrative AssistantRivkind, Margulies & Rivkind, P.A.Miami, FL, USAEmployment Type: Full-TimeBenefits Offered: Medical, Retir...


Apply Now ›
Risk Management and Litigation Associate Counsel - 23849

Position Type:Administrative and Central Office Office Title/Functional Title:Risk Management and Litigation Associate Counsel - 23849Civil ...


Apply Now ›
Agency Attorney, Enhanced Rate Equitable Services Unit, OGC

Process enhanced rate equitable services requests, response to filers and NYSED Inquiries. Receive, file, coordinate, and review ...


Apply Now ›
Go to Lawjobs