Wynn v. Monterey Club

111 Cal. App. 3d 789, 168 Cal. Rptr. 878 (Ct. App. 1980)

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Nature of the Case

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Facts

Ds are card clubs at which patrons are permitted to play certain described card games for money. The management does not participate in the games but collects from each player a rental per half hour based upon the limit and maximum bet for the game in progress. Hence the higher the wagering, the higher the income to the management. Ds afford to certain of its patrons the privilege of cashing checks. There is no question but that the prime purpose of the check cashing activity is to obtain funds for gambling. P's wife is a compulsive gambler. Her addiction was well known to Ds. She was afforded check cashing privileges at the club. In 1973, P's wife suffered heavy losses while gambling at the two clubs. She cashed $1,750 worth of checks which were dishonored because of insufficient funds. Gambling debts are not chargeable to P's and the wife's community property. The wife's gambling problem placed a severe strain on their marriage. P contacted D by telephone and discussed the problem. An agreement was reached whereby P would undertake to satisfy his wife's debts to the two clubs in exchange for Ds' promise to deny his wife access to the clubs and deny her any further check-cashing privileges. D sent P a letter confirming the agreement and ban. P paid the obligation in full. In May of 1977, the wife was again gambling and cashing checks at the Ds' clubs. She had suffered losses of approximately $30,000 and had begun to borrow money from friends to cover those losses. P's marriage was destroyed and he commenced an action for dissolution. P sued Ds for breach seeking damages for the disruption of the marriage, which resulted in P suffering physical and emotional distress compensable by way of general and punitive damages. Ds moved for summary judgment which was granted on condition that Ds refund to plaintiff the $1,750 plus interest from December of 1974. P appealed.