Posted: February 16th, 2024

Advise Bill providing reasons and giving legal authority for your advice

Part A

 

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Coronet Casino operates on a recently redeveloped area of Sydney Harbour.

Coronet provides a luxury experience for its high rollers (gamblers who bring a minimum $50,000 to the table). Coronet flies interstate gamblers into Sydney on a private corporate jet and accommodates them in a 5 star hotel next to the casino.

 

Bill, a Victorian, who had been in receipt of this corporate hospitality, placed himself on a self-exclusion order. He told the casino that he had a gambling addiction for which he was receiving treatment at a private hospital. He did not want to be admitted to the casino. Some months went by and Bill sought to attend the casino again. The casino asked about his earlier self-exclusion order and he said he was revoking it. Over the next 3 months Bill was flown weekly by Coronet private jet from Melbourne to Sydney and transferred by limousine to a 5 star hotel at Coronet’s expense. During that time Bill gambled and lost $2 million in Coronet Casino. He is now bankrupt and homeless and his wife has left him.

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You are working as a lawyer at a community legal centre. You are approached by Bill who asks you to advise whether there is any legal action he could take against Coronet in relation to his gambling losses and, if so, since he is a gambler, his chances of success. Advise Bill providing reasons and giving legal authority for your advice. (10 marks)

Part B

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Coronet engaged the services of Tang Ltd, a Sydney based tour company, to bring eight high rollers to Coronet Casino from China. Coronet paid a deposit of $5,000 to Tang. Tang agreed to attract gamblers and sign them up to an all-inclusive trip with flights, accommodation and meals. Coronet was going to subsidise each high roller to the amount of $3,000 per person on a trip price of $10,000. The high rollers would therefore be charged $7,000 per person. Under the agreement Tang would be entitled to be paid a commission of $2,000 per person for finding the participants and arranging the trip.

 

Tang signed up one person. One of Tang’s employees in Shanghai was trying to recruit another prospective participant when the employee was arrested. The employee has been charged with breaching new Chinese laws preventing direct marketing of casinos in China. As a consequence the tour does not go ahead.

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You are employed in Coronet’s legal department and are approached by Don in the company’s corporate office for advice. Coronet wants to recover its deposit from Tang. It also wants to recover an amount to compensate it for the expected profits it would have made from the gambling of the eight high rollers it had contracted Tang to supply. Advise Don giving reasons and citing legal authority for your advice.

 (10 marks)

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