Ivey v Genting Casinos

Ivey v Genting Casinos (UK) Ltd t/a Crockfords [2017] UKSC 67 is a UK Supreme Court case that reconsidered the test used for determining dishonesty.[1]

Ivey v Genting Casinos
CourtSupreme Court
Citation(s)[2017] UKSC 67
Cases citedR v Ghosh
Court membership
Judge(s) sittingLord Neuberger, Lady Hale, Lord Kerr, Lord Hughes, Lord Thomas
Keywords
dishonesty

Facts

Phil Ivey, an American professional poker player, played and won a series of games of Punto Banco—a variant of baccarat—at Crockfords Casino in London, owned by Genting Casinos (UK) Ltd. The casino did not pay out the £7.7m he had won, as they believed Ivey had cheated by using edge sorting. Ivey sued the casino to recover his winnings.

Both Ivey and the casino agreed that the contract contained an implied term forbidding cheating. Ivey's lawyers argued that the appropriate test for whether cheating occurred was the same for contract as it was in section 42 of the Gambling Act 2005, and that cheating necessitated dishonesty, which had not been shown.

At trial, Mitting J held that cheating had occurred and the contract was thus invalid. The Court of Appeal upheld the trial judge's ruling 2–1.

Decision

The Supreme Court held that Mr Ivey had cheated, and was thus not entitled to the payment sought from Genting Casinos.

Lord Hughes considers at length whether the existing test for dishonesty is acceptable, noting that dishonesty in civil contexts is judged objectively. The court noted, albeit obiter, that the second component of the two-stage test developed by the Court of Appeal in R v Ghosh was inadequate and replaced it with a purely objective test: would the act conducted be considered dishonest by an ordinary, reasonable person?

Reception

In the High Court case of DPP v Patterson, Sir Brian Leveson observed that:

Given the terms of the unanimous observations of the Supreme Court expressed by Lord Hughes, who does not shy from asserting that Ghosh does not correctly represent the law, it is difficult to imagine the Court of Appeal preferring Ghosh to Ivey in the future.[2]

David Ormerod and Karl Laird criticised the direction of the law following Ivey, arguing that the lack of a subjective element will lead to uncertainty and a possible human rights challenge under Article 7, citing a prior challenge to Ghosh.[3][4]

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gollark: Curse you lack of slots!

References
  1. "Ivey (Appellant) v Genting Casinos (UK) Ltd t/a Crockfords (Respondent)". The Supreme Court. Retrieved 2019-06-06.
  2. [2018] EWHC 2820, at [16].
  3. R v Pattni [2001] Crim LR 570
  4. Ormerod, David; Laird, Karl (2018). Smith, Hogan, and Ormerod's Criminal Law (15th ed.). Oxford. p. 881. ISBN 9780198807094. OCLC 1014163712.
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