Assignment Task:
QUESTION 1
Henry Chequer lived in the country and had, for the past thirty years, run a small dairy farm. He worked from dusk to dawn on the farm. In the evenings he liked to drink alcohol (perhaps too much). Henry had counselling for an alcohol dependency in 2005 and eventually found ways to keep his drinking under control. In 2015 Henry inherited a large sum of money from his aunt. He was shocked by the size of the windfall: $10 million. After investing five million dollars, Henry decided he needed a change. In 2016 he sold the farm and purchased an apartment in the city.
Henry’s apartment was 100 metres from Star Gazers Casino (Star Gazers). Henry began frequenting Star Gazers to play baccarat. At times Henry visited Star Gazers on a daily basis, at others he might not go to Star Gazers for two or three weeks. The staff members at Star Gazers were very friendly to Henry. He felt a little like a celebrity and was occasionally offered complimentary dinners and hotel-style accommodation. Occasionally, when Henry had a friend visiting from the country, he took up these offers.
When sober, Henry constrained himself on the baccarat table. However, with little to keep him occupied, Henry began to develop an alcohol dependency. With frequent bouts of drinking, Henry’s gambling became increasingly capricious. Sometimes Henry would lose $20 000 at a one sitting. Henry felt that, when he was in the throes of it, his gambling habit was an addiction. He had mentioned his problem to Star Gazers’ manager, Conrad. Conrad’s response was that while Star Gazers’ encouraged responsible drinking, what Henry did at Star Gazers was completely his choice. Between June 2016 and June 2018 Henry lost 1 million dollars playing baccarat at Star Gazers. Henry feels that he has been exploited. In December 2018 he comes to you for advice.
a) Please advise Henry in regard to any rights or action In equity he could take against Star Gazers. Your answer must address the elements of the cause of action, likely remedies, and any defences that may apply .
b) Would the answer be different if Henry had stopped gambling at Star Gazers five years before he came to you and Conrad, Star Gazers’ manager, had died during that period?
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