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2007 MarsdenLR 1298

HIGH COURT MALAYA KUALA LUMPUR
JUPITERS LTD (TRADING AS CONRAD INTERNATIONAL TREASURY CASINO) – Appellant
Versus
GAN KOK BENG & ANOR – Respondent


Petitioner Advocates:Rishwant Singh ,Respondent Advocate: Mabel James

Judgement Key Points

What is the proper law to apply to a wagering/gaming debt arising from six cheques and whether such action is enforceable in Malaysia? What is the effect of gambling-related statutes (Civil Law Act 1956 s 26 and Contracts Act 1950 s 31) on enforcing wagering contracts or payments in the form of cheques? What is the appropriate conflict-of-laws approach (lex loci vs. lex fori) to determine the validity and enforceability of wagering-related claims and which jurisdiction’s public policy governs?

Key Points: - (!) The court held the plaintiff cannot found its action on the six cheques under Malaysian law due to s 26 Civil Law Act 1956 and s 31 Contracts Act 1950 prohibiting wagering contracts. - (!) - (!) Discussion of Bills of Exchange Act 1949, Contracts Act 1950, and Civil Law Act 1956 interplay to require lawful consideration; the onus on the plaintiff to prove valuable consideration, which was not shown given gambling context. - (!) - (!) Moulis v. Owens and related jurisprudence cited to support that gambling transactions are void; public policy considerations apply. - (!) - (!) The court finds the action cannot proceed in Malaysia; Queensland law was considered but Malaysian law prevails for the substantive issue. - (!) - (!) The court concludes Malaysian law applies; the six cheques cannot support a valid action; the second defendant (co-signer) lacks liability; the suit is dismissed with costs to the second defendant. - (!) - (!) Section 27, 30, 25, and 24 of related Acts analyzed to address value, consideration, and unlawful or immoral contracts. - (!) Final conclusion: first and second issues found in favor of the defendants; third issue: Malaysian law prevails; suit dismissed.

What is the proper law to apply to a wagering/gaming debt arising from six cheques and whether such action is enforceable in Malaysia?

What is the effect of gambling-related statutes (Civil Law Act 1956 s 26 and Contracts Act 1950 s 31) on enforcing wagering contracts or payments in the form of cheques?

What is the appropriate conflict-of-laws approach (lex loci vs. lex fori) to determine the validity and enforceability of wagering-related claims and which jurisdiction’s public policy governs?


JUDGEMENT

Vincent Ng J:

The Application

[1] By the application vide encl 51, the defendants have sought prior summary determination of questions of law pursuant to O 33 r 2 read with r 5 of the Rules of the High 1980 (RHC) and/or under O 92 r 4 of the RHC. This was agreed to by the plaintiff and the order for such determination was then made. The agreed facts and issues for determination was finally arrived at only on 13 March 2006, and the documents for study and consideration are as contained in the agreed bundle captioned 'Ikatan Dokumen-Dokumen'.

The Brief Facts

[2] The plaintiff runs a casino by the name of "Conrad International Treasury Casino" in the City of Brisbane, in the State of Queensland, Australia. The casino conducts lawful activities in accordance with the laws of the State of Queensland, Australia. The material Queensland statute which governed such activities is the Casino Control Act 1982 of Queensland, Australia. The first Defendant engaged in certain gaming activities in the plaintiff's casino on several occasions. He suffered gambling losses and to settle such gambling debts he issued the plaintiff with six house cheques (cheque forms printed by the Casino) being

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