Supreme Court of Virginia
Herbert S. Glassman v. Federal Deposit Insurance Corporation
April 27, 1970210 Va. 650
Summary
The court held that the three notes were void under Virginia's gambling-consideration statute if they were given for gambling losses, even if held by a holder in due course. It further held that Glassman proved by a preponderance of the evidence that the notes represented such losses, reversed the judgments on the notes, and entered final judgment for Glassman. The court left undisturbed the judgment against Glassman on his cross-claim for repayment of $5,000.
Holding
- Whether notes given for gambling losses are void and unenforceable against the maker even when held by a holder in due course.. A note given for gambling losses is void under the applicable Virginia statute and is unenforceable against the maker even in the hands of a holder in due course.
- Whether the evidence established by a preponderance that Glassman gave the three notes for gambling losses.. Glassman established as a matter of law by a preponderance of the evidence that the notes were given for his gambling losses.
Docket Record 7082