Brown v. Krause

23 N.E. 1012, 132 Ill. 177
CourtIllinois Supreme Court
DecidedMarch 29, 1890
StatusPublished
Cited by3 cases

This text of 23 N.E. 1012 (Brown v. Krause) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Krause, 23 N.E. 1012, 132 Ill. 177 (Ill. 1890).

Opinion

Mr. Justice Magruder

delivered the opinion of the Court:

The main witnesses in' behalf of- the complainants in the cross-bill as to the representations, which were made by Dodd, Brown & Co. to induce Krause and his wife to purchase the Texas plantation, were Krause himself and his oldest son. Their testimony is confirmed by so many circumstances, and is so consistent with the conduct of the parties afid with the character and outcome of all their proceedings, that it commends itself to our minds as worthy of belief. The main witnesses to show, that the representations in question were not made, were Dodd and Brown. We cannot accept their statements as presenting a true account of what occurred. Their memories are accurate as to everything, which makes for their own interest, and sadly at fault as to all matters tending in the opposite direction. That the plantation was not what it was represented to he is shown by abundance of testimony outside of any statements made by the parties in interest.

Frederick W. Krause was a practical machinist, carrying on his trade as such upon the property owned by his wife at the corner of Washington and Jefferson Streets in Chicago. His wife also owned two houses on Congress Street in that city, one of which they occupied as a homestead. He was a simple-minded, confiding man, practical enough when engaged in his own chosen business, but upon all other subjects inclined to be somewhat of a theorist. Dodd and Brown were merchants of large experience, who had carried on business for many years in St. Louis and New York City, and had engaged in extended business operations in different parts of the country. They were shrewd men of the world, accustomed to dealing with men and to .making sharp bargains.

• Krause’s family, besides his wife, consisted of eight children. He and his wife were both anxious to get out of the city and to live in a milder climate. He had no money, but wanted to exchange the Chicago property for a place in the South. The property at the corner of Washington and Jefferson Streets was worth $44,000.00. . It was subject to a mortgage of .$14,000.00, and Mrs. Krause’s equity was admitted to be worth $30,000.00 by express stipulation with Brown as embodied in the contracts and trust deeds. Krause considered the houses worth $8000.00.

He first heard of China Grove plantation and of Dodd, Brown & Co. as the owners of it, in the summer of 1883 from a speculator by the. name of Johnson. In June or July a member of the firm of Dodd, Brown & Co. named Daughaday called upon him in reference to the place and looked at the Chicago property. About the first of August, 1883, Krause, having •occasion to go to Texas to. look at some land that had been •offered him near Columbia, passed through St. Louis, obtained from some one in Dodd, Brown & Co.’s store a sealed letter of introduction to the manager of China Grove plantation, which lay on the line of his j ourney to Columbia, and stopped over at the plantation and looked at it. The extent of his examination will be commented upon hereafter. He made up his mind that the place was not what he wanted, and that he did not have the means to handle it. Accordingly he did not call upon Dodd, Brown & Co. when he passed through St. Louis on his way back, as they had requested him to do.

A few weeks after his return to Chicago and in September, 1883, Dodd came to see him. Two weeks after this Dodd, Brown & Co. sent their confidential agent, H. L. Page, to see him. Page persuaded him to go to St. Louis and he went there about the middle of October, 1883, and saw both Dodd and Brown. They there induced him to enter into an option contract for the purchase of the plantation at $60,000.00. This contract bore date October 17,1883, and was afterwards abandoned and destroyed. No copy of it appears in the record.

Mrs. Krause objected to the contract made by her husband, and Krause so wrote to Page on October 22, 1883. Dodd answered quieting Krause’s fears and regrets, and stated that Brown would be in Chicago in a few days. Brown came to Chicago once or twice after this and during the fall of 1883. In the latter part of November or early in December Brown went to Krause’s house, and spent an evening talking with Mrs. Krause and her children and praising the China Grove plantation. Early in December Dodd went to China Grove .and made a contract with Vincent, the manager of Dodd, Brown & Co., to remain in the charge and management of the place during the year 1884.

In December Dodd, Brown & Co., by letter or telegram, again induced Krause to come to St. Louis, offering to pay half the expenses of the trip. He went down between Christmas and New Tear’s day, and was then told, among other things, that an English Syndicate was intending to buy up the surrounding lands and settle them with parties from England, and that a new town was to be laid out on the railroad in the near neighborhood. The evidence and the correspondence show, that Dodd, Brown & Co. were pressing Krause during this time to sell the two houses on Congress Street. He sold them in January, 1884, for $6100.00, and so wrote to Dodd, Brown & Co. Page came up about March 14, 1884, and obtained from Krause a memorandum of agreement for the purchase of the place at $65,000.00, and returned at once with it to St. Louis. There Dodd, Brown & Co: prepared a new contract, the trust deeds upon the Chicago property and the Texas plantation, and the deed to Krause of the plantation, all dated March 14, 1884. With these papers Page returned to Chicago onMarch 23,1884. On the next day Krause alone signed the contract, he and his wife signed the trust, deeds, and he paid to Page $4000.00 of the $6100.00 realized from the sale of the houses. Page returned to St. Louis, having obtained the money and the executed papers.

All the contracts and deeds, which were executed by Krause, were drawn by the attorneys of Dodd, Brown & Co. under their direction in Saint Louis. Krause had no legal adviser. We. cannot resist the conclusion, that Krause was deceived and overreached in the execution of these papers'. They are entirely one-sided. Their terms and provisions favor Brown and are most unfavorable to the other party.

In the early part of April, 1884, Krause went to China. Grove. In the latter part of the same month his family followed him. He and the surviving members of the family remained there until May, 1885, and then returned to Chicago. To him the results of this transaction were disastrous in the extreme.

He executed notes to the amount of $65,000.00 and trust deeds upon the Chicago and Texas property to secure the samei Dodd, Brown & Co. took the notes and trust deeds. His wife’s-houses were sold for $6100.00: Dodd, Brown & Co. took $4000.00 of this amount as soon as the papers were executed,- and they have never returned any of it. ■ About $1700.00 of the balance was expended for houses and other improvements-upon the Texas plantation, which finally went back into the* hands of Dodd, Brown & Co. Krause and his son took machinery to the Texas place worth $10,000.00 and erected a-saw mill thereon: Dodd, Brown & Co. possessed themselves-of the saw-mill and machinery. Their superintendent, Vincent, remained in the management of the place until January 1, 1885, notwithstanding the presence there of Krause and his family and the nominal ownership of the latter.

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Bluebook (online)
23 N.E. 1012, 132 Ill. 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-krause-ill-1890.