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On appeal from: [2016] EWCA Civ 1093

This case considered whether an implied term not to cheat in a gambling contract is only breached where there is dishonesty.

The Supreme Court unanimously dismissed the appeal, rejecting the appellant’s contention that his edge-sorting was not dishonest and therefore not cheating. the Court considered that his actions were positive steps to fix the deck and therefore constituted cheating.

The Supreme Court considered the test for dishonesty and concluded that the second leg of the test propounded in R v Ghosh does not correctly represent the law and directions based upon it ought no longer to be given. The Court held that the test of dishonesty is that which is used in civil actions. Thus the fact-finding tribunal must ascertain (subjectively) the actual state of the individual’s knowledge or belief as to the facts and then determine whether his conduct was honest or dishonest by the (objective) standards of ordinary decent people. There is no requirement that the defendant must appreciate that what he has done is, by those standards, dishonest.

For judgment, please download: [2017] UKSC 67
For Court’s press summary, please download: Court’s Press Summary
For a non-PDF version of the judgment, please visit: BAILII

To watch the hearing, please visit: Supreme Court Website (13 Jul 2017 morning session) (13 Jul 2017 afternoon session)