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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN
LESLIE C. ROBINS, et al., Plaintiffs, v. PSF HOLDINGS LLC, et al., Defendants. Case No. 09-CV-00930

DECISION AND ORDER Plaintiffs Leslie Robins and Colleen Devries-Caliendo bring this action to determine whether they or defendant PSF Holdings LLC ("PSF") are entitled to the interest on funds withheld for state taxes by the Wisconsin Lottery Division ("the lottery division"). I previously allowed plaintiffs to proceed on their breach of contract claim. Before me now are the parties' cross-motions for summary judgment. I. FACTS In 1993, plaintiffs won over $111 million in the Wisconsin Powerball Lottery. The lottery division was to pay plaintiffs in twenty annual installments of which each plaintiff would receive half. After collecting eight payments, plaintiffs entered into two identical agreements (hereinafter "the agreement") selling, for tax reasons, the rights to the remaining twelve-year stream of payments to PSF. Before signing the agreement, the parties contemplated that PSF would elect to forego the remaining twelve payments from the lottery division and instead receive an immediate lump sum payment. PSF also agreed to challenge any taxes withheld by the lottery division from the lump sum payment.

The agreement stated that the "Purchase Price to be Paid Lottery Winner" was "the approximate amount of $22,324,550.00" with an "exact Purchase Price . . . equal to the lump sum amount offered by the Lottery Division . . . less three percent (3%) for Purchaser's fee in connection with this transaction." (Decl. of Gregory W. Lyons Ex. H (see the "Terms Rider to Sale Agreement").) The agreement also required PSF to create a trust to receive the funds from the lottery division and to pay such funds to plaintiffs over time. The trust was to pay out the funds by issuing two promissory notes to each plaintiff. The trust was to issue the first note within ten days of its receipt of the initial cash payment from the lottery division and the second note within ten days of its receipt of the tax refund. The agreement states that the trust must issue each promissory note in the form specified in Exhibit A to the agreement. (Id. Ex. H

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