Addington v. Allen

11 N.Y. 374
CourtNew York Supreme Court
DecidedDecember 15, 1833
StatusPublished

This text of 11 N.Y. 374 (Addington v. Allen) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Addington v. Allen, 11 N.Y. 374 (N.Y. Super. Ct. 1833).

Opinion

*The following opinions were delivered:

By the Chancellor.

I can see nothing in the charge of the judge, at the circuit, which was calculated to mislead the jury. He certainly was right in saying that it was not material whether the recommendation through Wilson constituted, the only recommendation; that it was sufficient if the plaintiff was moved by that recommendation in giving the credit. It appears in this case that the letter of Hickcox, the merchant at Buffalo, was written in good faith, although it does not distinctly appear what the precise contents of that letter were; and there is no doubt that letter, as well as the false and fraudulent representation of Baker that he had beef coming to Wilson, had more or less influence on the mind of the person giving the credit; yet if the recommendation through Wilson was necessary to be superadded to enable Baker to obtain the credit, the defendant is as much liable for the damage sustained, as if that had been the only inducement to the credit. If the mind of the vendor as to giving the credit was nearly balanced, and the jury were satisfied that this fraudulent act of the defendant turned the scale, and induced him to part with the goods, he who was guilty of the fraud was properly holden to be answerable for the consequences thereof. Even where two persons, without preconcert, are guilty of fraudulent misrepresentations as to the credit of a purchaser, if the representations of both were necessary to induce the vendor to part with his goods, either might be made liable for the whole loss, as there is no contribution as between wrong doers. The fact that the clerk went to Wilson to obtain information as to the credit of Baker, although he had before seen the letter of Hickcox, and after inquiries had been made of one of the members of the firm to whom that letter was addressed, was of itself sufficient to authorize the jury to conclude he was not satisfied with the recommendation, whatever it might have been, which was contained in that letter; and in the language of the judge, that the mind of the vendor was moved in giving the credit, by the recommendation of the plaintiff through Wilson.

*What was said as to the right of the plaintiff to pursue the property, after the delivery thereof to Baker, on board the vessel, while on its transition from New York, could not have meant a technical right of stoppage in transitu, which can only be exercised before the delivery of the goods to the purchaser. But as the goods in this case were obtained by actual fraud, the vendor had an unquestionable right to pursue and reclaim them, not only on their transition from New-York, but at any time afterwards, until they got into [383]*383the hands of a bona fide purchaser without notice of the fraud. In this case, as the defendant had notice of the fraud when he purchased the goods at the sheriff’s sale, the plaintiff might have followed them, or the proceeds thereof into his hands. And if there had been a count in trover in this declaration, there could have been no difficulty in recovering under that count for the value of that portion of the goods which actually came to the hands of the defendant and was converted to his own use. See The Earl of Bristol v. Wilsmore, 2 Dow. & Ry. R. 760. Tamplin v. Addy, 8 Cowen, 239, note.

The facts in this case as detailed in the bill of exceptions, were unquestionably sufficient, if the declaration is properly framed for this purpose, to entitle the plaintiff to recover against the defendant, as a party to the fraud. The law, I consider, as settled in this state, that a fraudulent misrepresentation or an intentional deception of the vendor, by a third person, for the purpose of enabling the purchaser to defraud such vendor of his property, forms a good ground of action against the party who is guilty of making such misrepresentation, or practicing such deceit. It is a principle of natural law, which is constantly acted upon in courts of justice, to hold the accessaries, as well as the principal party, answerable to make restitution for the damages sustained by an unlawful or fraudulent act; and those are considered accessaries who, knowingly and intentionally, assist the principal party in doing the unlawful act, or in perpetrating the fraud. In this case the defendant was not satisfied with advising his nephew to do an act which, if prosecuted in due time, would probably have sent him to the state prison for obtaining goods by false pretences ; but he actually undertook to aid him in *this fraudulent and illegal act. The letter written by the defendant, although artfully drawn was undoubtedly intended to convey an impression to the mind of Wilson that Baker was a merchant of fair standing and worthy of credit, who was going to New-York to buy goods in the ordinary way of business. By this means he intended to induce Wilson to hold him out as such, to those who were intended to be defrauded of their goods, when the writer in fact knew that he was in failing circumstances, and that he intended to obtain the goods of the New-York merchants for the fraudulent purpose of subjecting them to executions which might be issued on the defendant’s judgments; and also to enable himself to compromise with his creditors, generally, by paying them a certain portion of their debts. The jury have found that this deceptive and fraudulent letter did accomplish the object for which it was intended by the defendant; and both reason and natural justice require that he should be held liable for the damage the plaintiff has sustained by that fraud.

It is not necessary that the defendant should have had any particular individual in view as the person who was to be defrauded. Although, if it had appeared that he wrote the letter with the intention of defrauding one person, and Baker had, without his consent, used it to defraud another, it is doubtful whether he could be made liable as an accessory to that fraud ; but when it appears he intended it should be used for the purpose of deceiving the persons from whom Baker might think proper to purchase goods, the defendant is answerable for the use which was made of the letter, although he might never have heard of the plaintiff until after the fraud was perpetrated. The observation of Lord Kenyon, in Scott v. Lara, 1 Peake’s N. P. R. 226, was proper, perhaps, when applied to that case. The declaration there alleged that the false allegation, as to credit, was made to Lindo, with intent to defraud the plaintiffs and to induce them to trust Valentine. But it appeared that Lindo made the inquiry as to the credit of Valentine, without informing the defendant that any person other than himself had any interest in the question, or that Valentine [385]*385was about to deal with the plaintiff or any one else. Neither did Lindo communicate to the #plaintiffs the information obtained. His Lordship said the two circumstances must concur to sustain the action; for it must appear that the lie was told for the purpose of imposing on the plaintiffs, and that they, relying on that information, were deceived. For aught that appeared in that case, the defendant might have supposed the question was asked from mere idle curiosity; or his object might have been to defraud Lindo only, without knowing that any other person was likely to be injured by the false affirmation.

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Bluebook (online)
11 N.Y. 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/addington-v-allen-nysupct-1833.