Keene v. Harling

In Keene v. Harling (1964) 61 Cal.2d 318, the plaintiffs sold defendants a coin machine route and equipment for $ 50,000, payable in installments. Part of the equipment consisted of illegal pinball machines, the market value of which at the time of sale was found to be $ 4,600. In an action against the buyers on the promissory note, the trial judge deducted the $ 4,600 amount as severable illegal consideration and enforced the remainder. On appeal, the defendants argued that since there was a single consideration of $ 50,000 for the entire business, the court could not sever out the illegal consideration. The Court of Appeal however affirmed, concluding that since the amount of illegal consideration could be determined, it mattered not whether the parties themselves had put a value on that portion of the contract. ( Keene, supra, 61 Cal.2d at p. 323.)