Court of Appeals of Missouri, Western District, Fourth Division
APPEAL FROM THE CIRCUIT COURT OF COLE COUNTY, MISSOURI. The Honorable Jon E. Beetem, Judge.
Kendall R. Vickers, for Appellant.
Matthew J. Laudan, for Respondent Missouri State Lottery Commission.
John S. Pletz, for Resondent Community Bank of El Dorado Springs.
Before Division Four: Alok Ahuja, Chief Judge, Joseph M. Ellis, Judge and Janet Sutton, Special Judge. All concur.
Joseph M. Ellis, Judge.
Appellant Gary Clark appeals from the Circuit Court of Cole County's grant of summary judgment in favor of Respondent Community Bank of El Dorado Springs (" Community Bank" ). Appellant contends that the circuit court erroneously granted summary judgment because § 313.285.1 of the State Lottery Law prohibits the assignment of lottery prizes, thereby making the assignment of his lottery payments, which he used to secure two loans from Community Bank, invalid. For the following reasons, the judgment is affirmed.
The following facts are undisputed. In 2006, Appellant won the Missouri Lottery " Lifetime Riches" prize. The prize entails Appellant receiving $50,000.00 per year for the rest of his life with a minimum payout of thirty years. On October 3, 2007, Appellant entered into a loan agreement with Community Bank in which Appellant granted Community Bank a security interest in the " Assignment of all Missouri Lottery Payments" in exchange for a $100,000.00 loan.
On October 16, 2007, Appellant executed a document titled " Missouri Lottery Payments" in which he agreed " to have all funds from the Missouri Lottery payable to [him] to be deposited in an account" at Community Bank. The document further states that the payments would be deposited into that account " for the purpose of securing payment of each and every debt, liability or obligation of every type or description which [he] may now, or at any time hereafter owe to" Community Bank. The document then states that Appellant understands Community Bank " has full authority and withdrawal rights on this account" and that Appellant " may not revoke this agreement." Attached to the bottom of the document is an acknowledgement of the agreement by the Missouri Lottery.
On July 13, 2010, Appellant executed a consolidated loan agreement with Community Bank in which he granted a security interest in the " Missouri Lottery Payment Assignment" in exchange for a $713,670.96 loan. Under the 2010 loan agreement, Appellant agreed to make twelve installment payments of $500.00 and one final balloon payment of $708,170.96 on July 15, 2011.
On September 3, 2013, Appellant filed a petition for declaratory judgment against Community Bank and the Missouri Lottery Commission. In his petition, Appellant alleged that the " Missouri Lottery
Payments" agreement constituted an unlawful assignment of lottery proceeds and, therefore, was void. Appellant requested that the circuit court declare the " Missouri Lottery Payments" agreement void and unenforceable and that the Missouri Lottery Commission ...