Bloom v. Heines

27 Ohio N.P. (n.s.) 381, 1929 Ohio Misc. LEXIS 1359
CourtCourt of Common Pleas of Ohio, Hamilton County
DecidedAugust 3, 1929
StatusPublished

This text of 27 Ohio N.P. (n.s.) 381 (Bloom v. Heines) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Hamilton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bloom v. Heines, 27 Ohio N.P. (n.s.) 381, 1929 Ohio Misc. LEXIS 1359 (Ohio Super. Ct. 1929).

Opinion

Shook, J.

By order of the Court this cause is consolidated with that of No. A-9456, and is to proceed under the above title.

• Harry Savin, by order of this court, on motion of defendant Meyer Heines, has been made a party defendant.

Distinguished counsel on both sides has filed capable and forceful briefs. We have considered the several arguments and all of the authorities cited, as well as the [382]*382record developed in this case," including the pleadings and various exhibits. At the outset it is necessary to state that the feeling exhibited among the various parties was of such a character as to make it necessary for the Court to scrutinize all of the evidence with extraordinary care in determining the credit to be given the testimony and to give credit accordingly. .

Substantially, the facts are that plaintiff, Phillip Bloom, •the defendant Harry Savin, and Max Greenwald, entered into a contract to purchase certain Florida land described in the pleadings' for the sum of thirty thousand dollars, on certain terms and conditions which are not material to our conclusions. Later Greenwald, by and with the consent of Bloom and Savin, withdrew from the contract, and on or-about June 30, 1925, the contract of purchase was completed by Bloom and Savin.- Harry Savin is the uncle of Meyer Heines. The defendant Heines went to Florida in the latter part of May or early part of June, and on June 2, 1925, purchased the property owned by Savin and Bloom for the sum of forty-five thousand dollars, through George Miller, who was a real estate agent, and who had negotiated the sale of the property to Greenwald, Bloom and Savin for thirty thousand dollars. One thousand dollars cash was paid by Meyer Heines on June 2, 1925, and fourteen thousand dollars more was paid on July 2, 1925, and three notes were given for twenty-five hundred dollars each, due in one, two and three years after July 2, 1925, together with the assumption of mortgages amounting to $22,500.00 -covering the entire transaction of $45,000.00. On July 28, 1925, defendant Heines obtained a thirty day option from Albert Mánowitz and others to purchase this same tract of land for $60,000.00, $3,000.00 being paid as a deposit, which was to be forfeited if the purchasers failed to exercise their option. George Miller, the real estate broker above referred to, handled this transaction also. However, the option was hot exercised, and the $3,000.00 was forfeited. The interest on the notes in this litigation becoming due on January 2, 1926, was paid by the defendant Heines. During August, or the early part of [383]*383September, 1926, a disastrous storm occurred in this section of Florida, and real estate values collapsed. Thereupon, on September 29, 1926, the defendant Heines addressed a letter to plaintiff rescinding the purchase of these forty acres of land in Dade County, Florida, tendering a deed and demanding the return of the purchase money paid, and the return of the notes sued upon herein, and for the cancellation of any assumption of mortgages existing upon this land, which he assumed when he purchased the same.

In passing, it is necessary to note that Max J. Greén-wald filed a suit in September, 1925, against Harry Savin and Phillip Bloom, known as cause No. 196,735, asking for an account of the purchase price obtained by the defendants and for judgment against them for any balance found due him. Thereupon, in January, 1926, defendants filed an answer in which, among other admissions, they alleged that they entered into a written contract with defendant Meyer Heines for this particular real estate setting out in some detail the consideration and other facts pertinent to the case. Plaintiff subsequently dismissed this suit at his costs.

Shortly after, according to this record, Meyer Heines’ brother learned of the connection of Harry Savin with the transaction and defendant Heines had knowledge of the same in May or June, 1926. The property in this transaction appeared in the name of Phillip Bloom. .Nowhere does it appear that Harry Savin had any connection with the same. The uncle, Harry Savin, was 56 years old, and his nephew was 28 years old, at the time of this transaction.

It is contended by plaintiff that there was no fiduciary relationship by and between the uncle and nephew; that the young man went to Florida to seek a fortune and took his chances speculating in real estate. It is conceded that prices were fluctuating tremendously. It is contended on the one hand that the uncle is an uneducated man of little schooling and that the nephew is a bright, energetic, educated young man, that no transaction of a business [384]*384nature had ever transpired between them and that the young man had never relied upon the older one in a single transaction. It is further claimed by Harry Savin, the uncle, that his nephew went to Florida of his own volition, that he did not expect to see him, that he refused to advise him, and that he, the nephew, employed Miller as agent, that the nephew speculated with the property and had an option, which, if it had been exercised, would have given the nephew a profit of $15,000.00 within thirty days thereafter. That no complaint was ever made, either directly or indirectly, of fraud or improper practice in the transaction until after this disastrous storm, which wiped out the profits, and that but for such disaster, no claim of fraud would ever have been made.

On the other hand, it is claimed that the record shows that the relationship was close between the nephew and his uncle, that Meyer Heines’ father was not successful in business, but that Harry Savin, his uncle, had been prosperous and was a man of keen business insight, that the defendant’s mother and her brother, Harry Savin, frequently came into contact, that they lived near each other in Cincinnati, and that the defendant Meyer Heines was a traveling salesman, but when he returned to his home at intervals he would often talk to the uncle and receive advice, or at least, had great admiration for his judgment ; that he wired his uncle in Florida that he was coming there, although this wire was never produced, the uncle denying that he received the same. It is conceded that Harry Savin at no time informed Meyer Heines that he was connected in any way with this property, nor that he had any interest in it whatsoever, it being the claim of Harry Savin that he did not know that his nephew had decided upon this particular tract involved herein, until after the sale had been concluded.

We feel that we should apply as the proper rule in deciding whether or not fraud was exercised by the defendant Harry Savin, the principles set forth in the cases of Christmas v. Spink, 15 Ohio, 600, and Merrick v. Ditzler, 91 Ohio St., 256. The syllabus in the case of Christmas v. Spink reads:

[385]*385“A court of chancery will not set aside a conveyance upon allegations of fraud unless the charges are clearly and satisfactorily sustained by the proof.”

We further follow the rule in the Merrick v. Ditzler case, that where the charge of fraud is involved, the proof must be clear and convincing.

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27 Ohio N.P. (n.s.) 381, 1929 Ohio Misc. LEXIS 1359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bloom-v-heines-ohctcomplhamilt-1929.