Spies v. Rosenstock

39 A. 268, 87 Md. 14, 1898 Md. LEXIS 102
Court of Appeals of Maryland·Decided January 4, 1898·Published·Cited by 19 cases

Opinion

Fowler, J.,

delivered the opinion of the Court.

The plaintiff sued the defendant to recover on a promissory note' for the sum of seven hundred and fifty dollars. The defendant pleaded non-assumpsit.

It appears from the testimony of the plaintiff that he and the defendant “ were copartners as book-makers for the races to be run at the two tracks in Virginia in the year 1895, and that the defendant not having the money to put into the business, the plaintiff agreed to furnish the capital of the same to .the amount of fifteen hundred dollars, and the defendant gave him the note sued on for his one-half of the capital of said business; that the said business had been unsuccessful and said sum of $1,500 was lost therein."

The defendant was asked to state the circumstances under which the note sued on was given, but the plaintiff objected. This objection was overruled, and the defendant was allowed to answer the question. He testified that the note was his genuine note, and that the endorsement “ S. J. Stargardtner” was also genuine; that the plaintiff and defendant had entered into an agreement in Baltimore City to engage in the business of book-making on certain races to be run in 1895 on courses in Virginia, and that at the time the said partnership was formed it was agreed that the sum of $1,500 was to be furnished by the plaintiff, and that the note sued on was to be and was given by the defendant for his share of the capital.” It .further appears from the testimony that “ the business of book-making on horse races is a business in which the book-makers offer bets at certain odds on particular horses in the races, and take all such bets as persons may choose to make with them at the odds offered, and upon the receipt of the money from the persons willing to bet with them, the book-makers issue tickets to them showing the terms of the bet, and if the [16] horses backed by the book-makers lose, they pay the winners, and if the horses win they keep the money received from the customer and pay out nothing ” * * * “that the business of book-making is betting on horse races, and is called book-making, because the bets are booked or a record kept of them in a book.”

The plaintiff also offered testimony tending to prove that the races in question were authorized by the laws of Virginia, and at the close of the case asked the Court to instruct the jury that if they believed from the evidence that the defendant executed the note sued on and had not paid any part thereof, the plaintiff was entitled to recover the amount of the note with interest. But the learned Judge below refused this prayer, and instructed the jury that upon the uncontradicted testimony the note was given in part execution of a contract which was contrary to public policy and therefore void, and that the plaintiff was not entitled to recover. The verdict and judgment being against him, the plaintiff has appealed.

The defendant was permitted to state. the circumstances under which the note was given. This constitutes the first exception. It is clear, however, that there was no error in this ruling, for it is settled that as between two immediate parties, as here between the maker and the payee, “while the note itself is prima facie evidence of the consideration, the question of consideration is always open.” Ingersoll v. Martin, 58 Md. 73.

Nor do we think there was any error in the instruction given the jury upon which is based the second exception. As we have seen the jury were instructed by the learned Judge below that the note sued on was by the uncontradicted evidence in the case given in part execution of a contract which was void, because contrary to public policy. Both the plaintiff and defendant testified that the note was given for the defendant’s contribution to the capital of the partnership „ formed between them to carry on the so-called business of betting on horse races in Virginia. It requires neither argu[17] ment nor authority to show that if the thing to be done is illegal, the contract of co-partnership for the purpose of doing that thing is equally illegal, for otherwise it would only be necessary to form a copartnership or a corporation in order, with impunity, either to violate the law, or prosecute a business contrary to the public policy of the State. The only question we need consider then is whether the business of betting on horse races is contraiy to the public policy of this State.

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Spies v. Rosenstock, 39 A. 268, 87 Md. 14, 1898 Md. LEXIS 102 (Md. 1898).

39 A. 268 (Spies v. Rosenstock) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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