TouchPlay lawsuits await their fate
August 29, 2006
DES MOINES – A Polk County judge is considering whether to consolidate the lawsuits filed by TouchPlay businesses against the state.
One lawsuit includes more than 60 businesses and claims the Legislature’s abrupt decision to end the TouchPlay game earlier this year cost the industry about $900 million.
West Des Moines businessman William Krause has filed a separate lawsuit in Polk County.
He is seeking a judgment against the lottery and its CEO Ed Stanek for breach of contract and unjust enrichment.
Krause, whose family owns the Kum & Go convenience store chain, created a company called Royal Financial for the purpose of buying and distributing 1,000 TouchPlay machines, which resemble slot machines.
Attorneys for the state want the cases consolidated with another one in Linn County, which was filed by another TouchPlay operator, Camden Inc. of Cedar Rapids.
A judge in that case ruled that the Linn County case will not be joined with those in Polk County, said Michael Dee, an attorney that is representing Royal Financial.
He used the ruling by Judge Denver Dillard to illustrate that a case could be compromised by consolidating them.
“We think there is tremendous prejudice to Royal by consolidating these cases,” Dee said.
He said a highly complicated trial involving numerous witnesses from the lottery and more than 60 business owners who claim they were made promises by the officials will be difficult for a jury to follow.
Polk County District Court Judge Glen Pille said he would review the arguments and the Linn County case before issuing a ruling.