Quek Chiau Beng v Phua Swee Pah Jimmy: Recovery of Gambling Debt & Illegality of Gaming Contracts
In Quek Chiau Beng v Phua Swee Pah Jimmy, the High Court of Singapore heard an appeal regarding a claim by Quek Chiau Beng against Phua Swee Pah Jimmy for S$160,000, allegedly a gambling debt incurred at Crown Casino in Melbourne. The court, presided over by Justice G P Selvam, considered whether the action to recover the gambling debt was prohibited under Section 5(2) of the Civil Law Act. The court allowed the appeal, setting aside the order for summary judgment and ruling that the action was indeed prohibited by law.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court addressed whether an action to recover a gambling debt was prohibited by law, ultimately allowing the appeal and setting aside the order for summary judgment.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Quek Chiau Beng | Plaintiff, Appellant | Individual | Appeal Dismissed | Lost | |
| Phua Swee Pah Jimmy | Defendant, Respondent | Individual | Appeal Allowed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| G P Selvam | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lee Mun Hooi | Lee Mun Hooi & Co |
| Ng Chong Hsing | Lee Mun Hooi & Co |
| G Raman | G Raman & Partners |
4. Facts
- The plaintiff claimed S$160,000 from the defendant based on a baccarat score card from Crown Casino in Melbourne.
- The defendant allegedly rolled A$586,000 of uncashable rolling chips and owed the claimed amount after accounting for commission and payment.
- The plaintiff asserted he was a licensed junket operator of Crown Casino.
- The defendant admitted to gambling at Crown Casino but denied dealing with the plaintiff regarding the gambling sessions.
- The defendant claimed he had dealings with the plaintiff's father, Quek Keng Siong, who promised credit for gambling.
- The defendant disagreed with the amount claimed by Quek Keng Siong on the baccarat score card.
- The baccarat card stated 'Jening owed Singapore dollars S$160,000 - 3/10/98', but did not specify who 'Jening' was or who the money was owed to.
5. Formal Citations
- Quek Chiau Beng v Phua Swee Pah Jimmy, DC 50072/1999, [2000] SGHC 247
6. Timeline
| Date | Event |
|---|---|
| Defendant rolled uncashable rolling chips at Crown Casino | |
| Defendant went to Melbourne | |
| Statement of claim filed | |
| Orders made on summons for directions | |
| Case ordered to be set down for trial | |
| Order to set down the case within two weeks | |
| Plaintiff filed an application for summary judgment | |
| Defendant granted unconditional leave to defend | |
| Decision Date |
7. Legal Issues
- Recovery of Gambling Debt
- Outcome: The court held that the action to recover the gambling debt was prohibited by Section 5(2) of the Civil Law Act.
- Category: Substantive
- Sub-Issues:
- Enforceability of gaming contracts
- Validity of debt arising from gambling losses
- Illegality of Gaming Contracts
- Outcome: The court held that the use of chips does not validate a claim and that a gambling debt cannot be disguised as a loan to circumvent the gaming section of the Civil Law Act.
- Category: Substantive
- Sub-Issues:
- Whether the use of gaming chips affects the validity of a gaming contract
- Whether a gambling debt can be disguised as a loan
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Debt Recovery
10. Practice Areas
- Commercial Litigation
11. Industries
- Gambling
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Sun Cruises Ltd v Overseas Union Bank | High Court | Yes | [1999] 3 SLR 404 | Singapore | Cited to explain the civil law of gaming and the principle that courts will not collect gambling debts. |
| Star Cruise Services Ltd v Overseas Union Bank Ltd | High Court | Yes | [1999] 3 SLR 412 | Singapore | Cited to explain the civil law of gaming and the principle that courts will not collect gambling debts. |
| R v Weisz, ex p Hector Macdonald | Not Available | Yes | [1951] 2 KB 611 | England and Wales | Cited to support the principle that courts must take a robust stand against actions brought in defiance of the gaming section of the Civil Law Act. |
| Hill v William Hill (Park Lane) Ltd | House of Lords | Yes | [1949] AC 530 | England and Wales | Cited for the principle that courts will look beyond artificial devices to determine the true nature of an agreement. |
| Las Vegas Hilton Corp v Khoo Teng Hock Sunny | Not Available | Yes | [1997] 1 SLR 341 | Singapore | Distinguished from the present case because the defendant in that case admitted to a loan, which was not the case here. |
| Loh Chee Song v Liew Yong Chian | Not Available | Yes | [1998] 2 SLR 641 | Singapore | Distinguished from the present case because the defendant in that case admitted that money passed hands, which was not the case here. |
| The Aspinall Curzon Ltd v Khoo Teng Hock | Not Available | Yes | [1991] 2 MLJ 484 | Malaysia | Cited to highlight the distinction between the legality of gambling and the actionability of gambling debts. |
| Lipkin Gorman v Karpnale Ltd | Court of Appeal | Yes | [1989] 1 WLR 1340 | England and Wales | Cited for its dissenting judgment regarding the legal aspects of gambling with chips in a modern licensed casino. |
| Lipkin Gorman v Karpnale Ltd | House of Lords | Yes | [1991] 2 AC 548 | England and Wales | Cited for its judgment regarding the legal aspects of gambling with chips in a modern licensed casino. |
| CHT v Ward | Queen's Bench | Yes | [1965] 2 QB 63 | England and Wales | Cited for the principle that the use of chips does not affect the invalidity of a gaming contract. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Civil Law Act (Cap 43) s 5(2) | Singapore |
| Civil Law Act (Cap 43) s 5(1) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Baccarat
- Junket operator
- Uncashable rolling chips
- Gaming debt
- Baccarat score card
- Gaming contract
- Civil Law Act
- Summary judgment
- Crown Casino
- Illegality
- Wager
15.2 Keywords
- Gambling debt
- Gaming contract
- Illegality
- Civil Law Act
- Summary judgment
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Gambling Debt | 95 |
| Casinos and Gambling | 90 |
| Gaming contract | 85 |
| Illegality and public policy | 80 |
| Contract Law | 75 |
| Summary Judgement | 60 |
| Civil Procedure | 50 |
16. Subjects
- Contract Law
- Gaming Law
- Civil Procedure