Braley v. Powers

42 A. 362, 92 Me. 203, 1898 Me. LEXIS 107
CourtSupreme Judicial Court of Maine
DecidedDecember 1, 1898
StatusPublished
Cited by10 cases

This text of 42 A. 362 (Braley v. Powers) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braley v. Powers, 42 A. 362, 92 Me. 203, 1898 Me. LEXIS 107 (Me. 1898).

Opinion

Whitehouse, J.

This was an action to recover damages for fraudulent representations in the sale of an interest in letters patent for the manufacture of harness buckles. The false representation set out in the plaintiff’s writ and relied upon at the trial, was that the defendant “had a quantity of said buckles on hand, consisting [205]*205of two sizes, which cost him thirty and thirty-five cents per dozen respectively, samples of which said buckles he then and there exhibited to the plaintiff, and then and there affirmed that he could get all the buckles which they desired to sell at said prices, respectively, and then and there affirmed that said buckles could then and there be sold at sixty-five and seventy-five cents per dozen respectively, and then and there double the cost.”

The plaintiff paid the defendant $800 for one third interest in the patent and recovered a verdict for $500. The case comes to this court on exceptions to the rulings of the presiding justice and and also on a motion to set aside the verdict as against evidence.

I. Evidence was admitted under objection, to prove the allegation above set forth, but the court was requested to instruct the jury that this representation by the defendant concerning the cost of the buckles, was not a statement of a material fact, and if false, was not actionable. The defendant excepted to the refusal of the presiding judge to give this instruction.

It is undoubtedly a reasonable rule of the common law, uniformly recognized in this state, that representations of the value of real or personal property which is itself the subject matter of bargain and sale, or of the price paid or offered for it in a particular instance, are so manifestly statements of opinion on the part of the seller, or mere evidence of the opinion of others respecting its value, that they cannot be. deemed statements of material facts which will lay the foundation of an action for deceit, even if the statements are false and intended to deceive. Bishop v. Small, 63 Maine, 12; Rhoda v. Annis, 75 Maine, 17 ; Bourn v. Davis, 76 Maine, 223; Palmer v. Bell, 85 Maine, 352.

But even in this class of cases when the statements relate directly to the subject matter of the sale, it was held in Manning v. Albee, 11 Allen, 520, that false representations that certain railroad bonds were selling in the market at a given price entitled the plaintiff to maintain an- action, there being no evidence that the plaintiff had equal means of knowing the truth or untruth of the statements, or that he might not rely upon them without the [206]*206imputation of negligence. See also Com. v. Wood, 142 Mass. 460.

In Coolidge v. Goddard, 77 Maine, 578, it was held, that a false representation by the defendant in effecting the sale of shares in an electric light company, that he and all other stockholders had paid to the company the par value of the stock, constituted a legal fraud, as it affected directly the value of the stock.

In Hoxie v. Small, 86 Maine, 28, the seller of shares in a contract for the purchase of real estate, made false" representations in regard to the amount paid for them to the owner of the land and the court held them actionable, saying: ' “ They affected directly the value of the interest which the defendant was selling. The defendant was not selling tangible property. He was selling a fractional interest in a contract. And the value of that contract depended largely if not wholly upon the amount of payments that had been made upon it.”

So in the principal case the defendant was not selling “tangible property,” but an interest in a .patent right for the manufacture of buckles. The value of the invention obviously depended upon the margin of profit between the cost of manufacturing the buckles and their selling price. Statements in regard to .their cost were therefore material as directly affecting the value of the right to manufacture them. The representations immediately following, that he could furnish all the buckles they wanted at the price named by him at the cost of those exhibited and that they could be sold so as to double the cost, were not in themselYes statements of existent facts, but were mere predictions and expressions of opinion. They served, however, to give significance and force to his positive statement of the cost of those exhibited. Considered in connection with these accompanying expressions of opinion, the representation, that the buckles shown to the plaintiff were manufactured for thirty and thirty-five cents per dozen respectively, were well calculated to convey to the mind of the plaintiff the idea that those buckles were manufactured at that cost under ordinary conditions, and not under exceptionally favorable circumstances.

The defendant also excepted to the refusal of the presiding justice to give the jury the following instruction, viz: “If a party is [207]*207imposed upon by the fraud of another, when the former had full means of detecting the fraud and ascertaining the truth of the matter and neglected to inform himself of it, when he might easily have done so, the law will not interfere to give relief.”

With the exception of the last clause, the language of this request was taken from the opinion in Pratt v. Philbrook, 33 Maine, 23. It was there employed by the court in giving reasons for sustaining a demurrer to the declaration, in which it appeared that the written contract with respect to which the false representations were made, was readily accessible to the plaintiffs before tbe trade was completed, and one of the transactions involved was ratified by them after full knowledge of the facts. The language was appropriate for that purpose, but as an instruction to the jury, it would fail to explain with sufficient fullness and clearness the duty that might rest upon the plaintiffs to exercise reasonable and ordinary care, diligence and prudence to ascertain the truth or untruth of the defendant’s representations. But a careful examination of the evidence in the principal .case leads to the conclusion that the jury would not have been authorized to- find that the plaintiff had equal means of knowing the truth or was chargeable with a want of ordinary care and vigilance in relying upo.n the defendant’s statement of the cost of the buckles. If correct as a general principle, the requested instruction was not called for as applicable to the facts in evidence. The buckle was a novel mechanical contrivance or device, and had no established market price.. The plaintiff was not an expert in such matters, and had no personal knowledge of its cost. The defendant had. already caused a quantity to be manufactured and had definite knowledge of the cost. The defendant’s statement to the plaintiff was deliberate and positive and made as of his own knowledge, derived from actual investigation and experience. There was nothing in it so improbable or unreasonable as to put the plaintiff upon further inquiry. He had no reason to suspect that the statement was false and made for the purpose of cheating and defrauding him. He. testified that he relied upon it as an inducement to the purchase, and it is the opinion of the court that he was justified in so doing. The request was properly refused.

[208]*208The defendant further excepted to the admission of the testimony of Frank M. Braley, that buckle makers in Portland and Boston informed him that they could not make these buckles of the larger size, less than one dollar per dozen.

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Bluebook (online)
42 A. 362, 92 Me. 203, 1898 Me. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braley-v-powers-me-1898.