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STATE v. PEERLESS INS. CO.

135 A.D.2d 143 (1988)

State of New York, Respondent, v. Peerless Insurance Company, Appellant. (Action No. 1.) (And a Third-Party Action.) State of New York, Respondent-Appellant, v. Peerless Insurance Company, Appellant, and Insurance Company of North America, Respondent. (Action No. 2.) (And Three Other Related Actions.)

Appellate Division of the Supreme Court of the State of New York, Third Department.

February 18, 1988

Attorney(s) appearing for the Case

Rivkin, Radler, Dunne & Bayh (David P. Franks of counsel), for appellant.

Robert Abrams, Attorney-General (Denise A. Hartman of counsel), for State of New York, respondent.

Bigham, Englar, Jones & Houston (Kevin T. Colby of counsel), for Insurance Company of North America, respondent.

KANE, CASEY, WEISS and LEVINE, JJ., concur.

MAHONEY, P. J.

The State Division of the Lottery (hereinafter the Lottery) sells lottery tickets to the public through retail ticket agents. Until 1978, banks distributed lottery tickets to the various retail agents. In 1978, however, the Lottery decided to experiment with an alternate distribution system. With respect to one particular game, the Lottery decided to utilize the services

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