Case Name: B. Mordecai vs. James B. Dawkins
Court: South Carolina Court of Appeals
Jurisdiction: South Carolina
Decision Date: 1856-01
Citations: 9 Rich. 262
Docket Number: 
Parties: B. Mordecai vs. James B. Dawkins.
Judges: Wardlaw, Withers, Whitner, Glover and Mukro, JJ., concurred.
Reporter: South Carolina Law Reports
Volume: 43
Pages: 262–268

Head Matter:
B. Mordecai vs. James B. Dawkins.
A promissory note given 'for money lent to game with is void, as well in the hands of the payee as of an innocent holder.
If the consideration, to wit, money lent, for which the note was given, was valid, still it is a mere chose in action which does not pass to the indorsee, so as to enable him to recover thereon in an action in his own name.
A subsequent parol promise to pay the note to the indorsee, is void for want of consideration.
Money lent to game with cannot be recovered back, and Carson vs. Rambert, 2 Bay, 561, overruled. Semble.
BEFORE GLOVER, J., AT CHARLESTON, FALL TERM, 1855.
The report of his Honor, the presiding Judge, is as follows:
“ The plaintiff declared in assumpsit, as holder of a promissory note, drawn by defendant, for seven hundred dollars, dated the 5th May, 1853, and payable the 15th October after to the order of Lewis C. Levin, and endorsed in blank by Levin. The defendant pleaded non-assumpsit, and gave notice that he would rely on the Statutes making void securities given for a gaming consideration.
“ L. C. Levin, -who was examined by commission, states, that on his way from Philadelphia to Cuba, he stopped at Charleston, where he met the defendant at a gaming table, who appeared to be in distress, and failing to borrow money from a friend, Levin loaned him seven hundred dollars, defendant stating that he had funds at his hotel, and would return it the next morning, which he neglected to do. Afterwards he gave the note sued upon in this case, on which Levin raised the money. Levin did not play with the defendant, nor did he see him play after he borrowed the money.
“I instructed the jury, that if the money was lent or advanced by Levin, knowingly, at the time and place of playing, to the defendant for gaming or betting, the note was void in the hands of any one, and that their verdict, in that event, should be for the defendant.
“ I held that so much of the Statute of Ann as authorises the loser to commence an action within three months to recover the money or goods lost at play, did not apply to’ an action against the party who lost. I also held, that any promise subsequently made by the defendant to pay the note, if the consideration was for money lent or advanced for gaming or betting, would not sustain the plaintiff’s action.
“ The verdict was for the defendant.”
The plaintiff appealed, and now moved this Court for a new trial, upon the following grounds:
1. Because the defendant promised to pay the note in November after it had fallen due; and his Honor declined to instruct the jury that this promisé was obligatory on the defendant, but held that it was without consideration, and not binding.
2. Because, although the security, to wit, the note, may have been void under the Statute of 9 Ann, and our- Act of 1791, the contract was nevertheless good; and the plaintiff was entitled to recover on the money counts.
3. Because the defendant, not having brought this action to recover back the note within three months, was barred by limitation of the defence that it was given for a gaming consideration.
4.' Because there was no evidence that the money was lent for the purpose of gaming; and in the absence of all evidence, the jury had no right to infer that it was.
5. Because the verdict was in the other respects contrary to law and evidence.
Davega, for the motion.
If the note was given' for money lent to game with, the subsequent promise was-good. 4 Wend. 654; 2 Bur. 1082; 2 Stat. 565. But there is no evidence that the money was lent to game with.
W. Gr. Be Saussure, contra,
cited Chit, on Bills, 67; Parsons on Con. 381; Story on Prom. Notes, sec. 189; 4 M‘C. 211; Hussey vs. Jacobs, 5 Mod. 175; Cannon vs. Brice, 3 B. & Aid. 179; 2 B. & P. 371; 3 Mees. & W. 434; 4 B. & Aid. 212; Chit, on Bills, 83; Chit1, on Con. 283; 1 Pars. 361; 1 Man. & Gr. 999; 5 Man. & Gr. 338.
Porter, in reply.
There is nothing to show that it is a gaming transaction, but simply a loan in a gambling room, which is not a void transaction. The Statute merely renders the security void, it does not vitiate the contract. 2 Wils. 36, 399; Robinson vs. Bland, 1 W. Bl.' 260; 1 Esp. 16; 2 Sfcra. 1249; Carson vs. Rambert, 2 Bay, 560; 1 Sp. 382; 8 B. & O. 395; 16 East, 274;. 4 Taunt. 683.

Opinion:
The opinion of the Court was delivered by
O'Neall, J.
In this case we think the facts well warranted the jury in finding, that the consideration of the note was for money lent to game with, within the knowledge of the payee. This brings the case within 9 Anne, C. 14, 2 Stat. 505, and the 5th sec. of the Act of 1791, both of which declare, "all notes," &e., " for the reimbursing or repaying of any money knowingly lent or advanced to' game, with, to be utterly void, frustrate, and of none .effect, to all intents and purposes whatsoever." There can, therefore, be no doubt that the note is not only void between the parties, but also that it is so even in the hands of an innocent holder. This is necessarily the case from the fact, that the note is declared by law to be void; no subsequent matter can make it valid. The case of Tidmore vs. Boyce, 2 Mill, 200, is an analogous case, and if authority be necessary, is decisive of the point.
The note here given for money lent to game with, in the knowledge of the lender, being void, the verdict for the defendant is right, unless the plaintiff, the endorsee, can fall back on something else, which can sustain his case. He alleges that although the note is void, yet that the contract for the money lent remains unaffected by the law, and on that he can recover. Let it be conceded to be law for the present, that the money lent may be recovered by the lender, still that will not help the plaintiff; for he is the mere endorsee of the security, the note, which is void, and can have therefore no rights. For the endorsement of a void security does not convey any thing — it may operate to charge the endorser absolutely — but it can convey no right to any cause of action which the payee may have outside of or behind the bill. The case of Fairlie vs. Denton & Barker, cited by the learned counsel from 8 Barn. & Cres. 395, (15 Eng. C. L. Rep. 247,) plainly supports the position. For Lord Tenterden, C. J., begins his opinion by saying, " It is a general rule of Mw that a chose in action cannot be assigned." What is the "verbal contract" here relied on to pay the money lent? Beyond all doubt it is a chose in action, and not being assignable so as to give a right of action to the assignee in his own name, it follows he cannot sustain his action as endorsee under it. But it is said'there is a count on a subsequent promise by the defendant to the endorsee to pay the note, and this is supposed may' be considered as a promise to pay the consideration. But surely that cannot be so. If it was, it would be giving effect beyond the words. I have no doubt, as is stated in Fairlie vs. Denton & Barker, that where A. is indebted to B., and C. is indebted to A., and it is agreed that C. should pay A.'s debt to B. in discharge'of C.'s debt to A., and thereupon B. accepts him and discharges A., that B. can maintain an action against C. So too, I have no doubt, if a parol contract, not assignable at common law, is by writing or delivery transferred to a third person, and the debtor promise to pay it, that an action can be maintained. For the consideration in both cases is sufficient and the promise is express. The case of Hockaday ads. Willis, 1 Speer, 379, goes very far to show that there could be .no consideration for the subsequent promise relied on in this case. For in that case it was ruled, that a conveyance for property lost at play was void under the Statute of Anne, and that its assignment (unaccompanied by actual delivery of the goods) could be no consideration for a note or other promise.
The case of George vs. Stanley, cited from 4 Taunt. 683, cannot help the plaintiff, for although that case purports to decide that the renewal of bills given for a gaming debt to an innocent holder would be valid, yet 'it is to be remarked, the Court did not decide on that naked proposition. For the defendant had also confessed a judgment, and that certainly makes a very marked difference. The Court was not asked to enforce the contract, but to set aside the judgment.
So far I have assumed what at one stage of the argument I was willing to concede, to wit., that the verbal contract to pay the money lent might be enforced, notwithstanding the security was void. The case of Carson vs. Rambert, 2 Bay, 561, on the authority of the case of Robinson vs. Bland, 2 Burr. 1082, so ruled; and although it always was a decision for which I could not give a satisfactory reason, yet until the argument here, I never could see my way clear to overrule it. In the argument Cannon vs. Brice, 3 Barn. & Al. 179, and M'Kinnell vs. Robinson, 3 Mees. & Wels. 434, were cited, and they having substantially overruled Robinson vs. Bland, as it was understood in Carson vs. Rambert, I have been enabled to see my way clear to the overruling of the. doctrine, that notwithstanding the security is void, the consideration or contract as it is called remains. In Cannon vs. Brice, 3 Barn. & Ald. 179, it was ruled, that money received by the defendant under assignments executed by a partner, of three cargoes, two belonging to the firm, and the other to himself, to be applied to a bond of the partners, given to make good money loaned to compound a stock jobbing transaction, might be recovered by their assignees as bankrupts. It appeared in that case, that by the Stat. 7 G. 2, c. 8, stock jobbing is unlawful, and by the 5th section it is declared to be unlawful to pay or receive money under a composition for not transferring any public stock. Abbott, C. J., said, " The Court is bound in the administration of the law to consider every act to be unlawful which the law has prohibited to be done;" and in another part of his opinion, after holding the payment by the party to the composition to be unlawful, he says, speaking of the law, "How can it be lawful for another to furnish, him with the means of payment ?" This authority, and this reasoning touch, as will be seen hereafter, the ground on which I place my opinion. The case of M'Kinnell vs. Robinson, 4 Meeson & Wellsby, 434; is, however, more directly to the point. In that it was held, that money lent for the purpose of gaming and of playing with an illegal game, such as hazard, cannot be recovered back. Lord Abinger, C. B., who delivered the judgment, said, that the "principle is, that the repayment of money lent for the express purpose of accomplishing an illegal object cannot be enforced;" and he held, that as the game played, for the purpose of playing which the money was loaned, was declared to be illegal by the Stats. 12 Geo. 2, c. 28, secs. 2 and 3, and 18 Geo. 2, c. 34, sec. 2, the money loaned could not be recovered; and this, with the Stat. of 9 Anne, C. 14, and the cases decided under it, before him. The same result must here follow, notwithstanding the case of Carson vs. Rambert. For although the judges did then advert to the Act of 1802, 5 Stat. 432, which declares gaming unlawful, yet they did not consider the effect which that would have on a loan to enable a party to game. The Act of 1816, 6 Stat. 27, has declared all gaming of the kind in which the defendant was unfortunately engaged, to be unlawful, and has subjected the parties to heavy punishment by fine not exceed ing five hundred dollars, and imprisonment not exceeding twelve months. Such gaming the Court, as is said by Abbott, C. J., in Cannon vs. Brice, is bound to " consider unlawful," and if it be unlawful for the defendant to play, " how can it be lawful for 'another to furnish him with the means." So, too, as is said in M'Kinnell vs. Robinson, " the money lent cannot be recovered, for it is lent for the express purpose of a violation of the law, and enabling the borrower to do a prohibited act." The principles thus educed from our statute law, and the analogies of English cases, has the support of the case of Rice vs. Gist, 1 Strob. 82, in which we declared all wagers to be .unlawful. We have therefore concluded, on a full review, that it is better at once to say, that not only the security for the reimbursement of money lent to play with is void, but also that the money itself cannot be recovered back.
The motion is dismissed.
Wardlaw, Withers, Whitner, Glover and Mukro, JJ., concurred.
Motion dismissed.