United States Court of Appeals for the Third Circuit
916 F.2d 110 (1990)
David Zarin (plaintiff) applied for and received a credit line from Resorts International Hotel (Resorts), which ran a gambling establishment in New Jersey. Under the terms of the line of credit, Resorts advanced chips to Zarin, which he used to gamble at the hotel. Zarin soon became an excessive gambler and received regular increases on his credit limit. By November 1979, his line of credit had a limit of $200,000. That year, the Casino Control Commissioner issued an Emergency Order that effectively prohibited casinos from making extensions of credit to Zarin. Despite this, Resorts continued to increase Zarin’s credit line. In 1980, Zarin had amassed a debt of $3,435,000. He wrote personal checks to Resorts to pay the debt, but the checks bounced. As a result, Resorts sued Zarin to recover the $3,435,000. Zarin argued Resorts could not recover the amount owed because New Jersey regulations prohibited it. The parties eventually settled, agreeing that Zarin owed only $500,000. The Commissioner argued that the reduction in Zarin’s debt amounting to $2,935,000 was a discharge of indebtedness, and was therefore income to Zarin. The Tax Court agreed.
Rule of Law
Holding and Reasoning (Cowen, J.)
Dissent (Stapleton, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 241,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.