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During the summer of , the Gottliebs, who are Pennsylvania residents, were vacationing at a rented apartment in Atlantic City, New Jersey.
On July 24, , after dinner with friends, the Gottliebs visited the Tropicana casino. Tropicana, a New Jersey corporation that operates a gambling casino in Atlantic City, offers people membership in its "Diamond Club.
There is no charge. Each member receives a Diamond Club card bearing a unique identification number. Upon entering the casino on July 24, , she immediately went to the Fun House Million Dollar Wheel Promotion "Million Dollar Wheel" and waited in line for approximately five minutes before it was her turn to play.
Diamond Club members were entitled to one free spin of the Million Dollar Wheel each day. Gottlieb had played the game several times before. In both New Jersey and Pennsylvania, Tropicana had advertised the Million Dollar Wheel in newspapers, magazines, and with direct mailings, although there is no evidence that the Gottliebs saw any of the advertisements.
Not surprisingly, the parties do not agree as to everything that happened once Ms. However, they do agree that she presented her Diamond Club card, a casino operator swiped it through the card reader, she pressed a button to activate the wheel, and the Million Dollar Wheel began spinning.
Tropicana avers that the wheel simply landed on the lesser prize. Tropicana has moved for summary judgment on Count I of the complaint, a claim for breach of contract.
According to Tropicana, it is well established under New Jersey law that participation in a promotion such as the Million Dollar Wheel cannot constitute consideration that would support the formation of an enforceable contract.
On the other hand, plaintiff argues that the law of Pennsylvania applies where participation in a promotion such as the instant one is sufficient consideration to form a binding contract.
Under Pennsylvania law, we must determine whether any conflict between the laws of the relevant states is a false conflict. If the conflict is real, we proceed to determine which forum has the greater interest, considering the qualitative contacts of the states, the parties and the controversy.
See LeJeune, 85 F. Pennsylvania law requires us to apply the law of the state having the most significant relationship with the parties and the incident.
United Air Lines, Inc. Before beginning any conflicts of law analyses, however, we must first determine whether there is any conflict between the laws of the two jurisdictions.
Under both Pennsylvania and New Jersey law, adequate consideration is necessary in order to form an enforceable contract. See Continental Bank of Pennsylvania v.
Barclay Riding Academy, Inc. Glen Alden Coal Co. Consideration is a bargained for exchange, and it may take the form of either a detriment to the promisee or a benefit to the promisor.
See Continental Bank, A. In support of its contention that New Jersey law holds that no valid consideration exists when a person participates in a promotion, Tropicana cites only one case, a unpublished transcript of a ruling of the Superior Court of New Jersey.
There, the Resorts International Hotel, Inc. The question before the court was whether "something of value" passed from the player to the casino, making the promotions illegal gambling in violation of New Jersey law.
It did observe, however, that in the past the presence of only "minute consideration" made a promotion illegal gambling under New Jersey law.
Over time, though, the scope of "something of value" had been restricted and "strictly defined. In other words, "something of value" requires more than the minimum consideration that would support the formation of a contract.
The court concluded that nothing "of value" had passed from player to casino in the course of the three promotions. It did not decide, as Tropicana contends, that participation in a promotion cannot constitute adequate consideration for a contract.
See Lucky Calendar, A. The calendar contained an explanation of the "Lucky Calendar Prize Contest. All they had to do to enter was tear the entry form off of the calendar, enter a name, address, and phone number, and have the form deposited in a box at any Acme store.
There was no charge, and they were not required to be present for the drawing. The question in Lucky Calendar was whether there had been consideration for participation in the drawings.
The Supreme Court of New Jersey noted that, assuming consideration was required in order for something to qualify as an illegal lottery under the Lottery Act, it need only be the minimum consideration that is necessary to form a contract.
The court determined that consideration was present "both in the form of a detriment or inconvenience to the promisee at the request of the promisor and of a benefit to the promisor.
As the court pointed out, "The motives of the plaintiff and its customer [in offering the Lucky Calendar Prize Contest] See Cobaugh, A.
The court noted that the promisor benefitted from the publicity of the promotional advertising, and the golfer performed an act that he was under no legal obligation to perform.
The laws of New Jersey and Pennsylvania similarly hold that the minimal detriment to a participant in a promotional contest is sufficient consideration for a valid contract.
As there is no conflict between the laws of the two states, we need not engage in any conflict of laws analysis. It simply does not matter which law we apply.
Gottlieb had to go to the casino to participate in the promotion. She had to wait in line to spin the wheel. Participants sign up by providing basic personal information.
No fee is required. Diamond Club members receive unique identification cards that they swipe before playing casino games.
Through such swipes, Tropicana collects data that it uses for marketing purposes. Gottlieb plaintiff was a member of the Diamond Club.
Diamond Club members were allowed one free spin of the Wheel per day. Gottlieb waited in line for approximately five minutes before her turn. The Wheel then landed on a different prize, two show tickets.
Gottlieb brought suit in Pennsylvania, to which Tropicana has moved for summary judgment on the grounds that it bore no contractual obligation to Gottlieb.
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