METROPOLITAN CREDITORS SERVICE V. SADRI
19 Cal.Rptr. 2d 646 (1993)
NATURE OF THE CASE: Metropolitan (P), creditor service, challenged the decision of the
Municipal Court, which entered judgment declining to enforce gambling debts incurred by
Sadri (D), gambler.
FACTS: D incurred debts totaling $22,000 over a two-day period in 1991 while gambling at
Caesar's Tahoe casino in Nevada. D wrote the casino two personal checks for $2,000 and
$10,000. D also executed two memoranda of indebtedness for $5,000 each. In exchange for the
checks and memoranda, D received chips, which he lost playing the game of baccarat. D
subsequently stopped payment on the checks and memoranda, which were drawn on his account at
a Redwood City bank. Nevada law makes credit instruments evidencing gambling debts owed to
licensed persons, and the debts represented, valid and enforceable by legal process.
Gambling debts were previously unenforceable in the Nevada state courts. The casino assigned
its claims to P for collection, and P sued D in California, filing a complaint in municipal
court in San Mateo County. The court rendered judgment for D, ruling that under established
public policy his gambling debts were unenforceable in California. The Appellate Department
of the San Mateo County Superior Court affirmed. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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