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Commercial Law Keyed to Whaley
Sea Air Support, Inc. v. Herrmann
Citation:
613 P.2d 413 (1980)Facts
Hermann wrote a check for $10,000 payable to Ormsby House, a casino located in Nevada, and used the money to cover three checks he had previously written to acquire casino chips. The casino was unable to collect on the check as Hermann’s account was overdrawn. The check was assigned to Sea Air, a collection agency, which was unsuccessful in its attempt to collect from Hermann. Sea Air subsequently sued Hermann but lost in trial court due to a long line of Nevada cases that refuse to enforce gambling debts under its state law. Sea Air appealed to the Nevada Supreme Court. Herrmann argued that Sea Air was not a holder in due course as it had notice that the check was void and unenforceable under Nevada state law.
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