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Amusement Sales, Inc.v.State Of Georgia

CourtCourt of Appeals of Georgia
Docket No.A12A0200
DecidedJuly 11, 2012
JudgesCourt of Appeals of Georgia
Tags
CivilCivil ProcedureGovernment LawProperty LawStatutory InterpretationJury InstructionsProsecutorial MisconductReversalRemand
Case Summary

Amusement Sales leased eight electronic game machines to a Georgia convenience store. The State alleged that the store paid customers cash winnings, making the machines gambling devices and the store a gambling place under Georgia’s RICO Act, and sought in rem forfeiture of the machines and money. A jury ruled for the State. The Georgia Court of Appeals held that the evidence supported the forfeiture claim: the machines operated by chance, generated substantial cash profits, and were used in a business where cash payouts occurred daily. The owner also failed to establish the innocent-party defense because the profit and recordkeeping evidence permitted a finding of constructive knowledge. The court nevertheless reversed and remanded for a new trial because the private special assistant district attorneys prosecuting the forfeiture action were paid a percentage of forfeited proceeds. That contingency arrangement gave them a personal financial stake in the outcome and violated Georgia public policy; because forfeiture is quasi-criminal and permanently extinguishes property rights, the owner did not need to show prejudice from the conflict. The court further directed that the retrial jury receive the RICO-specific innocent-party and burden-shifting instruction rather than language borrowed from the drug-forfeiture statute.

Opinion

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