R & P Capital Resources, Inc. v. California State Lottery

Prior to recent amendment, the State Lottery Act provided: “The right of any person to a prize shall not be assignable, except that payment of any prize may be paid . . . to a person designated pursuant to an appropriate judicial order. . . .” (Gov. Code, § 8880.32, subd. (g), as amended by Stats. 1992, ch. 500, § 3.) The sole issue presented in this appeal is whether that language permits the voluntary assignment of the right to lottery prize payments. In a declaratory action, the trial court held it did not. Plaintiff, R & P Capital Resources, Inc., the would-be assignee, appeals, urging a different statutory interpretation. We affirm.

Factual and Procedural Background

David Gintowt won $2,575,000 in the California State Lottery in 1987, payable in 20 annual installments of $128,750 each. In May 1993, Gintowt entered into a sale and assignment agreement to assign his right, title and interest in and to six annual payments to R & P Capital Resources in exchange for $400,000. The agreement provided that in order to comply with California law, the parties would obtain a court order approving the assignment. The parties obtained an order from the Butte County Superior…