United States v. Wallace

15 C.M.A. 650, 15 USCMA 650, 36 C.M.R. 148, 1966 CMA LEXIS 325, 1966 WL 4432
CourtUnited States Court of Military Appeals
DecidedJanuary 28, 1966
DocketNo. 18,811
StatusPublished
Cited by24 cases

This text of 15 C.M.A. 650 (United States v. Wallace) is published on Counsel Stack Legal Research, covering United States Court of Military Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Wallace, 15 C.M.A. 650, 15 USCMA 650, 36 C.M.R. 148, 1966 CMA LEXIS 325, 1966 WL 4432 (cma 1966).

Opinions

Opinion of the Court

FERGUSON, Judge:

Arraigned and tried before a general court-martial convened at Munich, Germany, the accused was found guilty of four specifications of wrongfully and dishonorably failing to place and maintain sufficient funds on deposit in his bank account to meet the payment of specified checks upon their presentment, in violation of Uniform Code of Military Justice, Article 134, 10 USC § 934, and a single specification of wrongfully, deceitfully, and dishonorably making and uttering thirty-three cheeks to the Officers Open Mess, Murnau, Germany, and thereafter dishonorably failing to maintain sufficient funds on deposit to pay such instruments on presentment, in violation of Code, supra, Article 133, 10 USC § 933. He was sentenced to be dismissed from the service. The convening authority approved the penalty, but the board of review commuted it to a forfeiture of $100.00 per month for nine months, otherwise affirming. We granted accused’s petition for review upon issues dealing with the sufficiency of the evidence and the denial of certain instructions requested by the defense counsel. We need, however, deal only with the question of sufficiency.

[651]*651I

The record discloses a truly astonishing situation. Major Wallace, an officer whose previous service had been outstanding in every respect, was assigned to a responsible position in an organization located at Murnau, Germany. A bachelor, he resided in the Bachelor Officers’ Quarters and frequented the Officers’ Club. As permitted by a U. S. Army, Europe, directive, the Club possessed and placed in its bar several slot machines. Previously unfamiliar with such devices, the accused became fascinated by them and indulged himself as one of the heaviest, if not the heaviest, player in the organization. In fact, the Club custodian described his participation in the following manner:

“Q. Did he ever give money to the Club — donate money to the Club ?
“A. The way he played the slot machines, sir, I would say yes.”

As the machines were set to return only thirty cents of every dollar deposited in them, there is justification for the observation. Indeed, it appears that, as a result of the accused’s penchant, the Club enjoyed its most prosperous year.

Between April 1, 1963, and January 1964, the accused wrote approximately $7,000.00 in checks to the Club. Some $5,000.00 of these were honored by his bank, located in the United States. The balance were returned unpaid to the Club and form the basis of the charges against him. The proceeds of the unpaid checks and the bulk of those duly honored on presentment were placed in the Club’s slot machines.1

According to the transcript, the normal procedure followed by the accused and the Club was as follows. Accused would purchase rolls of quarters kept for that purpose at the Club bar. He would either pay for them by cash, check, or I.O.U. The quarters would be played in one of the machines. If accused won, he returned his winnings to the device. If he lost, he procured more quarters and continued to play.

Accused normally redeemed his I.O.U. at the end of the evening or later from the Club manager by giving a check in its place. When checks were returned unpaid by his bank, they were billed to him on his monthly account. Upon such occasions, he replaced the dishonored checks with one for their total face value. When this, along with others, was dishonored, he would replace it with a larger check, and so on, until the end of the period involved. Though accused had no agreement as such with the Club, the Board of Governors, of which he was a member, was aware of the procedure which he used, as were other Club personnel. All were confident, in light of accused’s character, that the Club would eventually be paid. In fact, when an audit of the Club books disclosed to the local Commander the extent of the accused’s obligation, and he brought such to accused’s attention, the debt was immediately satisfied.

II

Based on the foregoing, the Government argues that, as use of slot machines in United States Army, Europe, Clubs is legal, the fact accused’s checks were written to facilitate a gambling game is immaterial. Hence, it urges the failure to maintain funds on deposit to pay such obligations upon presentment was dishonorable conduct and suffices to support the findings of guilty. We disagree.

Whether the use of slot machines in American military establishments abroad is legal, we need not and do not decide. Cf. United States v Whitson, 14 USCMA 324, 34 CMR 104. Whether gaming is legal or illegal, transactions involving the same or designed to facilitate it are against public policy, and the courts will not lend their offices to enforcement of obligations arising therefrom.

Thus, in Berman v Riverside Casino [652]*652Corporation, 323 F2d 977 (CA 9th Cir) (1963), it was pointed out that, although gambling is legal in Nevada, the courts of that State deny any right of recovery on gaming transactions. The same is noted in Scott v Courtney, 7 Nev 419 (1872); West Indies v First Nat. Bank of Nevada, 67 Nev 13, 214 P2d 144 (1950) ; and Weisbrod v Fremont Hotel, Inc., 74 Nev 227, 326 P2d 1104 (1958).

In the West Indies case, as here, dishonored checks were involved in payment of gambling debts. The Supreme Court of Nevada refused to permit suit for their collection, although conceding state statutes permitted licensed gambling and imposed a tax thereon. In Weisbrod, supra, the court declared action by a winner against the defaulting proprietor of a keno game would not lie, saying, “The dispute here involved is not one of which judicial cognizance can be taken.” Weisbrod, supra, at page 1105.

So also in Hamilton v Blankenship, 190 A2d 904 (DC CA) (1963), recovery was denied for money loaned by a licensed Maryland proprietor of slot machines, such, as here, being advanced “in the form of coins to enable appellee to play the slot machines maintained there.” The Court of Appeals found that a gambling transaction could not form the basis of suit in Maryland, although this form of gaming was legal there. It also pertinently noted the applicable general rule, at page 904, to be as follows:

“Ordinarily a contract valid where made will be enforced in the courts of another jurisdiction without regard to whether it would have been valid under the law of the forum. Exception is made to the general rule when enforcement of the contract would contravene the public policy of the forum.” [Emphasis supplied.]

See also the cases collected in Annotation, 53 ALR2d 345; 24 Am Jur, Gaming and Prize Contests, § 61; and 38 CJS, Gaming, §§ 4, 29.

In like manner, this Court has, on the basis of public policy, consistently refused to sustain criminal proceedings based upon the issuance of worthless or subsequently dishonored checks in connection with gambling games. Thus, in United States v Walter, 8 USCMA 50, 23 CMR 274, we declared, at page 53:

“It is clear from what we have said above that gambling is against public policy and that the subjects of the alleged larceny were engaging in this illegal activity with the accused. . . . We will not act as the ‘strong arm’ of a collection scheme for gamblers within the service in order to intimidate payment by ‘debtors’ of void gambling debts.

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Bluebook (online)
15 C.M.A. 650, 15 USCMA 650, 36 C.M.R. 148, 1966 CMA LEXIS 325, 1966 WL 4432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-wallace-cma-1966.