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Reiser V Dayton

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Submitted By platouche
Words 340
Pages 2
Business Law I
3/31/2011
Reiser v. Dayton Country Club Company

I. Facts The Dayton Country Club offers many social activities to its members. However, the privilege to play golf at the club is reserved to a special membership category for which additional fees are charged. The club chooses golfing members from a waiting list of members according to detailed rules, regulations, and procedures. Magness and Redman were golfing members of the Dayton Country Club. Upon their filing for bankruptcy, their trustee sought to assign by sale their rights under these memberships to (1) other members on the waiting list, (2) other members not on the waiting list, or (3) the general public, provided the purchaser first acquired membership in the Club. The bankruptcy court found that the Club’s rules governing golf membership were essentially anti-assignment provisions and therefore the estate could not assign rights contained in the membership agreement. On appeal to the district court, the bankruptcy court’s ruling was affirmed. The district court added that this case was not a lease but rather a “non-commercial dispute over the possession of a valuable membership in a recreational and social club.”

II. Issue When the rights under a contract are personal, they may not be assigned. .

III. Decision Facts: Decision: Judgment affirmed. .

IV. Reasons The Court of Appeals found that the memberships of Magness and Redman were personal contracts which are not assignable. A personal contract is one in which “the personality of one of the parties is material.” The determination of whether a contract is personal is a question of intent as shown by the language used in the contract and the nature of the contract. In this case, “[t]he contracts creating the complex relationships among the parties and others are not in any way

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