Lottery Transactions Lead To Years-Long Litigation

Lottery Transactions Lead To Years-Long Litigation

This month, the Texas Court of Appeals, Eleventh District (Eastland), released an opinion involving litigation over lottery transactions.

The transactions occurred in 1996 and 2001, and were between, among other parties, the lottery winners, Alfredo and Idalia Galindo, and a purchaser of the lottery payments, Prosperity Partners, Inc.

The latter transaction was approved, pursuant to the Texas Lottery Act, by an order of a Texas court in 2001.

When the transactions went awry, the Galindos filed suit.  That litigation began in 2005, and resulted in discovery disputes, an award of sanctions, and the latest appeal, in which the Texas appeals court reversed the sanctions decision.

So the litigation continues.  And the gravamen of the claims?  Said the court: “Specifically, the Galindos contended that they were fraudulently induced to sign the 2001 agreement without the advice of independent legal counsel and an independent financial advisor, as required by the Texas Lottery Act.”  Additionally, the Galindos “also filed suit for usury, common-law fraud, violations of the Texas Deceptive Trade Practices Act, and negligence.”

A copy of the opinion, Galindo v. Prosperity Partners, Inc., No. 11-12-00034-CV, 2014 Tex. App. LEXIS 2036 (Tex. Ct. App. Feb. 21, 2014), is available here.

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