Bareham & McFarland, Inc. v. Kane

228 A.D. 396, 240 N.Y.S. 123, 1930 N.Y. App. Div. LEXIS 12181
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 5, 1930
StatusPublished
Cited by33 cases

This text of 228 A.D. 396 (Bareham & McFarland, Inc. v. Kane) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bareham & McFarland, Inc. v. Kane, 228 A.D. 396, 240 N.Y.S. 123, 1930 N.Y. App. Div. LEXIS 12181 (N.Y. Ct. App. 1930).

Opinion

Edgcomb, J.

This action was brought in the City Court of Rochester, Civil Branch, to recover the unpaid balance of the purchase price of a heating plant, which the plaintiff installed in the residence of defendant. The answer consists of three affirmative defenses by way of counterclaims: (1) That defendant has rescinded the contract, because it was induced by fraud, and is entitled to recover the purchase price paid; (2) that defendant has a cause of action against the plaintiff for breach of an express warranty; (3) that defendant is entitled to recover from the plaintiff the damages which he has sustained by reason of the latter’s breach of an implied warranty.

The City Court struck out the second and third counterclaims, upon the ground that they failed to state facts sufficient to constitute a cause of action, but refused to make a similar disposition of the first. The Monroe County Court, on appeal, held that all three counterclaims should be stricken out, and directed judgment for the plaintiff for the amount demanded in its complaint. We are called upon to pass upon the correctness of such ruling.

The' first defense alleges that, in order to induce the defendant to purchase the heating plant, the plaintiff falsely and fraudulently represented to the defendant that said heating plant would adequately and satisfactorily heat the premises owned by defendant * * *, and would give much better heat than coal; that it would heat said building to 70 degrees Fahrenheit in zero weather; that the fuel oil required to produce adequate heat in said building would not cost more than eight per cent to ten per cent in excess of the coal required in the heater then in use upon said premises, and would, in no event, exceed $350 for the season; that the gas for the pilot light would not cost to exceed $1 a month, and that the electricity would not run over $5 to $6 a month, and that the heater would run smoothly and give entire satisfaction." There is an allegation that the plaintiff knew that said representations were false, and that defendant relied thereon in making the purchase.

If, as plaintiff urges, and as the learned County Court has- held, these representations are to be construed as nothing more than the opinion of the speaker as to what the heater will do in the future, then, concededly, the first counterclaim cannot be upheld. To constitute actionable fraud, the false representation relied upon [398]*398must relate to a past or existing fact, or something equivalent thereto, as distinguished from a mere estimate or expression of opinion. (People v. Peckens, 153 N. Y. 576, 591; Sparman v. Keim, 83 id. 245; Hatton v. Cook, 166 App. Div. 257; Barbrick v. Carrero, 184 id. 160.)

Neither can the statements complained of be made the basis of an action in fraud, if they are nothing more than a recommendation of the plaintiff’s wares. It is common knowledge that dealers are wont to put the best side out, and extol their goods. The public is so familiar with dealer’s talk ” that it is generally regarded as a mere expression of opinion, and, where the parties deal on equal terms, is not relied upon to any great extent. (Arnold v. Norfolk Hosiery Co., 76 Hun, 15; affd., 148 N. Y. 392.)

No hard and fast rule can be laid down as to what constitutes a fraudulent representation in any particular case. This result, of necessity, depends upon the peculiar circumstances and conditions involved. In cases of doubt, where the statements relied upon are capable of two interpretations, one of which would indicate that they were intended as a positive assertion of some past or present fact, which is susceptible of knowledge, and the other which would signify that they were nothing more than an estimate, opinion, expression of belief, or prophecy of what would occur in the future, the question is one which should be passed upon by a jury.

While the alleged misrepresentations in the case at bar relate to what the heating plant will do when it is installed in defendant’s home, it must be remembered that the heater was either in existence at the time the statements were made, or, if it had not actually been assembled and set up, was one of a specified, definite and certain type, which had previously been manufactured and sold, and was not an article which was to be constructed in the future, the characteristics of which were largely conjectural. What was said could easily be understood to relate to the inherent capacity, character and quality of the heater, and what it was actually capable of doing. Giving to it such interpretation, the representations were more than mere dealer’s talk,” or a prophecy of what would occur in the future; they were positive statements of existing facts, concerning which the plaintiff had superior and peculiar knowledge. That being so, they could be made the basis of an action in fraud.

pi- The decisions of the courts indicate a disinclination to extend the rule which permits a dealer, in order to sell his wares, to indulge with impunity in statements of opinion, which turn out to be untrue.

[399]*399In Case Threshing Machine Co. v. Feezer (152 N. C. 516) the defendant made certain statements as to the quality of the work which a machine would do, and the amount of power required to run it. Whether the representations were fraudulent or not was held to be a question of fact which should be passed upon by a jury.

In Jones v. Brandt (173 Wis. 539) defendant sought to avoid the payment of a note, given for the purchase price of a dredge, because of certain misrepresentations made by the plaintiff that the machine would properly do the work desired, and was supplied with a kerosene engine of ample capacity to operate all motions, either independently or simultaneously; that it was equipped with traction mechanism sufficient to propel it by means of the power of the engine; that the machine could be set up or taken down in three days. Held, that the mere fact that the statement took the form of an expression of opinion was not conclusive, and thac the question of whether it constituted fraud was one for the jury.

In Maxwell Ice Co. v. Brackett, Shaw & Lunt Co. (80 N. H. 236) it was held that representations by an expert on power, made to one not having equal knowledge as to the amount of energy which standard makes of motors and engines will develop, differ materially from seller's talk or mere expressions of opinion.

In Schmitt v. Ornes Esswein & Co. (149 Minn. 370) defendant represented that a machine was as good as new, and would afford a sufficient degree of refrigeration to keep meat from spoiling. Held, that the statement related to the natural capacity or power of the machine, and was more than a prediction or expression of opinion, and, if made with knowledge of its falsity, and with intent to deceive, would form the basis of an action for fraud.

In Fox v. Duffy (95 App. Div. 202) the complaint alleged that, in order to bring about the sale of certain real property, the defendant falsely and fraudulently stated to the plaintiff that one John Scully, who was then the owner and holder of a certain mortgage on the .said premises, would foreclose the same, and that this plaintiff would lose all her interest in the premises, and get nothing for it.” This was held to be a statement of fact, rather than an expression of opinion, or a representation concerning some future event.

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228 A.D. 396, 240 N.Y.S. 123, 1930 N.Y. App. Div. LEXIS 12181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bareham-mcfarland-inc-v-kane-nyappdiv-1930.