Bales v. Evans

148 N.W. 790, 182 Mich. 383, 1914 Mich. LEXIS 819
Michigan Supreme Court·Decided October 2, 1914·No. Docket No. 150·Published·Cited by 5 cases

Opinion

Steere, J.

This action on the case was brought in the circuit court of Allegan county to recover damages claimed to have been sustained by plaintiff through misrepresentations of defendants whereby she was fraudulently induced to enter into a contract for the purchase of their hotel.

Defendants, who are husband and wife, owned and conducted a small hotel called the Junction House, located near the Lake Shore Railroad Station, in the city of Allegan. On February 5, 1913, plaintiff and her husband arrived in said city on the evening train from the West and went to the Junction House for the night. They were strangers in the city and had come from their former home in Iowa with the intention of renting a farm in the vicinity of Allegan, led to make the move through correspondence with a man named Littlejohn. In casual conversation between the parties, defendants learned the mission of their guests, and the talk which followed resulted in the latter contracting to buy the hotel for $3',500 and plaintiff making a first payment of $300 on the purchase price. The negotiations took definite form the following day, which was Saturday, and on Monday, February 8, 1913, the contract was signed, followed by the payment of $300 by plaintiff. Plaintiff’s claim, briefly stated, was that defendants, having learned the circumstances and purpose which brought her and her husband to Allegan, and that they were unac[385] quainted there, began systematically to discourage them from their project, telling them there were no advantageous opportunities to rent or buy land in that vicinity, and that Littlejohn was dishonest, relating cases of his having defrauded people in land matters, etc., thus frightening them from consulting him; that defendants then made it known they were contemplating selling their hotel, owing to their health and other plausible reasons, and Mrs. Evans finally proposed that plaintiff buy it; that during the negotiations which followed defendants represented and falsely stated, in such manner as to then convince plaintiff, that their house was the best hotel in Allegan, bore a good reputation, was patronized by commercial travelers and the best class of the traveling public, had been run in a respectable and moral manner, and enjoyed a steady and profitable patronage, yielding a regular income of from $5 to $10 per day; that by such representations, which they believed and upon which they relied, plaintiff and her husband were induced to enter into said contract, and she to make the first payment as stated, without consulting others, Mr. Evans requesting her not to tell any one they had sold out; that she shortly thereafter took possession, and soon discovered that the representations, which induced her and her husband, were false and fraudulently made; that the house in fact bore an unsavory reputation, had been conducted rather as a rooming and assignation house than a reputable hotel, had no regular patronage by the respectable traveling public; that the income was inadequate, and the business even as previously conducted had been unprofitable, and the people who had resorted to and patronized the place were not, as a rule, respectable or of good repute; that upon learning such facts plaintiff took an assignment of his interest in the contract from her husband, who had paid noth[386] .ing upon the same, tendered an assignment of said contract and possession of the property to defendants, repudiated the agreement, and demanded back the money she paid, which was refused, whereupon she removed from the premises and began this action.

Defendants pleaded the general issue, denied any and all charges of misrepresentation, and claimed that the hotel had been conducted properly and profitably and bore a good reputation. The issue of misrepresentation and fraud thus raised was tried upon its merits before a jury, with abundance of bitterly conflicting testimony, and resulted in a verdict and judgment in plaintiff’s favor for $300 and interest.

Defendants’ 29 assignments of error relate to rulings of the court in admission and rejection of testimony, the charge of the court, refusal to charge as requested, the opening statement and argument to the jury by plaintiff’s counsel.

In the investigation of fraud it is said a' broad latitude may be permitted in the introduction of evidence upon matters which may throw light upon the question at issue, and an elastic discretion must necessarily be left to the trial court within such range in guiding the course of the proceedings and ruling upon the many varying questions which exigencies of the case present, but clearly incompetent and prejudicial testimony or argument are no more permissible in this class of cases than any other. Wessels v. Beeman, 87 Mich. 481 (49 N. W. 483).

A careful reading of this record forces the conviction that numerous unseemly and intemperate things were permitted in the course of the trial, which should have been suppressed, though most of them are, under the conditions shown, such as to be regarded of that incidental class within the discretionary power of the' court, with which appellate courts are loath to interfere except in distinct cases of abuse. [387] Certain of defendants’ assignments of error are directed to such incidents, by which it is urged plaintiff’s counsel continually brought before the jury prejudicial matter foreign to the issue, and thereby deprived defendants of a fair and impartial trial. We are impressed that such an atmosphere surrounded the case, and that both sides contributed to it.

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Bales v. Evans, 148 N.W. 790, 182 Mich. 383, 1914 Mich. LEXIS 819 (Mich. 1914).

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