Berns v. Shaw

64 S.E. 930, 65 W. Va. 667, 1909 W. Va. LEXIS 101
CourtWest Virginia Supreme Court
DecidedMay 11, 1909
StatusPublished
Cited by1 cases

This text of 64 S.E. 930 (Berns v. Shaw) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berns v. Shaw, 64 S.E. 930, 65 W. Va. 667, 1909 W. Va. LEXIS 101 (W. Va. 1909).

Opinion

Mlller, President:

This is a suit in equity under sections 3435 and 3437, Code 1906, to recover $335.00 alleged to have been lost by plaintiff to defendant in March, 1904, in playing the game-called roulette. The suit was cominenced in the intermediate court of Marion county, where on bill, answer and proof the plaintiff’s bill was dismissed on thé ground, as recited in the decree appealed from, that the suit could not be maintained against defendant alone, the evidence showing that D. E. Thomas was a partner with Shaw in the transaction and a necessary party to the suit, and upon his petition presented to the circuit court the plaintiff was denied an appeal and supersedeas to said decree, and- he has brought the case here.

■ The appellee claims that regardless of the reason given by the intermediate court therefor, the decree dismissing the bill was clearly right for want of equity and should have been dismissed on demurrer. This presents the question argued here on both sides, whether the remedy in equity given by section 3437, is cumulative of the remedy at law given by the preceding section 3436, or is available only where some discovery is necessary and the remedy at law inadequate. Said section 3437, provides: “Such loser may file a bill in equity against such winner, who shall answer the same, and upon discovery and repayment of the money or property so’won, or its value, such winner shall be dis- [669]*669. charged from any forfeiture or punishment which he may have incurred for winning the same'.” The appellee insists that as the bill shows no necessity for discover, but on the contrary, that plaintiff has an adequate' remedy at law, given by section 3436, a court of equity is without jurisdiction. The allegations of the bill in effect simply charge that plaintiff lost to defendant the said sum of money, and prays for a- discovery by defendant of the money so won by him from plaintiff and for a decree for the money.

These statutes have come down to us through Virginia, practically unchanged, from 9 Anne, chapter 14; 2 Kelley’s Anno. Stat. W. Va. p. 646; White v. Washington’s Ex’or., 5 Grat. 615. Story says, 1 Story Eq. Jur., section 303, p. 307, referring to jurisdiction in equity to suppress gaming contracts: “No one has doubted that under such circumstances a bill in equity might be maintained to have any gaming security delivered up and cancelled. But it was at one time held that if the money were actually paid in a case of gaming, Courts of Equity ought not to assist the loser to recover it back upon the ground that he is pariiceps criminis”. And in section 304, he says: “But it is difficult to perceive why upon principle the money should not be recoverable back in furtherance of a great public policy, independently of any statutable provision. It has been decided that if money is paid upon a gaming security it may be recovered back, for the security is utterly void. Why is not the original gaming contract equally void? And if it be, why is it not equally within the rule, and the policy on which the rule is' founded?” To the same effect is 2 Pom. Eq. Jur. (3rd Ed.) § 941. It would thus seem that independently of statute such cases were within the domain of original equity jurisdiction, and that the statute was unnecessary to confer jurisdiction. But in states like ours, which have adopted the provision of the Statute of Anne, the question of equity jurisdiction it seems is no longer a subject of doubt or controversy. White v. Washington, supra; Boner v. Montgomery, 9 B. Mon. 123; 20 Cyc. 955, and other cases cited in notes. As before the statute jurisdiction to recover back money paid in execution of a gaming contract was in equity alone, it is by virtue of the statute that courts of law now have concurrent jurisdiction. In the well considered case of McKinney v. Pope’s Adm’r., 3 B. Mon. 93, the policy and purposes [670]*670of these statutes is considered, and the previous ease of Downs v. Quarles is referred to, in which latter case the hill alleged the necessity of a discovery which the courts say possibly might have been deemed a ground for taking ’jurisdiction if there had been a legal remedy under the statute, “But”, says the Court, at page 96, “the question formally stated by the Court, after showing that there was no remedy under the statutes, seems to relate to the general power and jurisdiction of a Court of Equity to decree the restitution of money paid on a gaming contract, which question is unaffected by the mere fact that a discovery might or might not be necessary in the particular ^case; the solution of the question is made to turn, not upon the want of jurisdiction in the Court to decree the money to the loser, if he had been equitabfy entitled to it, but upon the absence of a right to recover, arising from the equality of his guilt, and upon the doubtful propriety, with a view to the policy of suppressing the vice of gaming, of restoring to the loser the money which he has paid.” The case of Downs v. Quarles was decided before the statute of Kentucky of 1833. In considering the effect of the statute the Kentucky court in this case further says: “Then the question whether the objects of the statute will be promoted by restoring to the loser his losses is closed, and the courts, both of law and equity, are bound to advance the object by using their appropriate powers in advancement of the means adopted by the Legislature.” And the court in that case in deciding the exact question we have here in favor of the concurrent jurisdiction in equity to recover back money lost in gaining says: “The Court then has jurisdiction to grant this relief in the case of gaming, by analogy, and because it has jurisdiction in like cases. And it is not too liberal a construction of the statute, which gives the right to sue ‘in any court having jurisdiction in like cases’, without intimating any preference for the remedy at law, to say that as the Court of Equity had jurisdiction in like cases, the right of suing in that forum as well as in the court of law, is expressly given by the statute. It may be added that it has been maintained by eminent jurists, that independently of any statutory provision for the recovery of money lost at gaming, it should be recoverable back, because it is in furtherance of a great public policy: 1 Story’s Equity, 303, and consequently that the Court [671]*671of Equity should have granted such relief.” We think this case states the law correctly.

But has the plaintiff made out a case entitling him to relief ? The intermediate court evidently thought Thomas a partner and therefore a necessary party to the suit and denied relief on that ground. As a general rule there can he no partnership in an illegal business. This includes gambling. Parsons on Partnership, section 8 and note; George on Partnership, 25. Illegality of a partnership, however, affords no reason why it should not be sued on a transaction with it that is legal in itself. 1 Lindley on Partnership (4th Ed.), star page 200. There was no plea in abatement, however, nor is there any defense in the answer on account of the non-joinder of Thomas. The answer of defendant is not that the claim sued for is a partnership obligation, and that the action should abate because of non-joinder of Thomas, but that the money alleged to have been lost by plaintiff was lost to Thomas and not to him. Shaw denies the partnership and claims that Thomas and not himself was engaged in the gambling business. So we need not consider the question of partnership or partnership liability. The question does not fairly arise.

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Cite This Page — Counsel Stack

Bluebook (online)
64 S.E. 930, 65 W. Va. 667, 1909 W. Va. LEXIS 101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berns-v-shaw-wva-1909.