Brown v. Rice's adm'r

26 Va. 467, 26 Gratt. 467
CourtSupreme Court of Virginia
DecidedSeptember 16, 1875
StatusPublished
Cited by16 cases

This text of 26 Va. 467 (Brown v. Rice's adm'r) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Rice's adm'r, 26 Va. 467, 26 Gratt. 467 (Va. 1875).

Opinion

Anderson, J.

delivered the opinion of the court.

This is an action of debt by the defendant in error against the plaintiff in error upon tvro bonds—one for $1,900, payable one day after date, and the other for $491.55, payable on or before the 1st of July 1869, both bearing the same date, the 24th of February 1869. They are executed to Milly Rice, the intestate of plaintiff below, and signed “ Mary B. Brown, adm’x of A. B. Brown,” with a (seal) annexed.

The defendant tendered two special pleas under the statute in bar of the action, both of which were rejected by the court. The second plea is substantially a plea to this effect. That the said Milly Rice, plaintiff’s intestate, in her lifetime “fraudulently procured the execution of the said writings obligatory in the declaration mentioned by the defendant, as administratrix of A. W. Brown, for and in consideration of the one-half of two notes not under seal, which had been executed to her in her lifetime by defendant’s intestate, and J. G. Brown as partners,'in their firm name of A. W. & J. G. Brown, by falsely and fraudulently representing to her, the said defendant, that the said notes were still “unpaid, valid, and in full force in law against the estate of A. W. & J. G. Brown, when, in truth and in fact, both of the said notes were then barred by the statute of limitations; which fact was well known to the said Milly Rice, but was fraudulently concealed from the defendant.

The averments by the first plea are more in detail. It sets out the dates of the notes of A. W. & J. G. Brown, and when payable; the death of J. G. Brown, [469]*469and the subsequent death of A. W. Brown, from which it appears that the latter, as surviving partner, was entitled to the possession of the social effects, and was bound for the debts of the firm; and from which it also appears that the said notes were barred by the statute of limitations in the lifetime of A. W. Brown, the defendant’s intestate. It also appears from the said plea, that the defendant never saw the said notes; but that representations were made to her by the plaintiff, then acting as the agent of Milly Bice, through defendants brother, that the said notes were lawful debts, outstanding against the estate of A. W. & J. G. Brown; and a proposition, that if she, as administratrix of A. W. Brown, would give her bonds for one-half of said notes, she, Milly Bice, would arrange the other half with the widow of said J. G. Brown, who was her daughter, and that the estate of A. W. Brown would be benefited, as it would thereby be released from one-half of the debt for which it was then bound. And that she, the defendant, was induced by these representations to assent to the proposition. That afterwards the plaintiff, as agent of the said Milly Bice, had the bonds, which are the writings obligatory in the declaration mentioned, drawn and sent to her by her brother, and she executed them as administratrix, and not in her own right, not knowing until after-wards the fraud which had been practiced on her in procuring the execution of her bonds for notes which were barred by the statute of Imitations, and which she had never seen. Such are in effect the averments of the first plea, stripping it of much that is immaterial and surplusage.

Both pleas are, that the bonds were executed by her in her character as administratrix, and not in her individual right, or as her personal obligations, as she had [470]*470no assets. Though the legal effect of the obligations-be different, and she is bound personally, the averment to the contrary cannot vitiate the pleas, if they consti-(;Ute a good equitable defence against the bonds, considering them as her personal obligations. And it cannot be doubted that the facts averred in the pleas present as good a defence against the bonds, regarding them as personal, as if they only bound the assets; because, whether personal or not, it was an obligation to pay the debt of the intestate; and if personal and binding upon her, it constitutes a stronger defence for her, because the debt being extinguished as a debt of the intestate by the statutory bar, she could have no recourse upon the estate if she paid it. The question remains, are these pleas a bar to the plaintiff’s action?

It is contended for the defendant in error, that the misrepresentation alleged by the pleas is a misrepresentation as to matters of law, and that such misrepresentation does not constitute fraud, because the law is presumed to be equally within the knowledge of all the parties. But whilst the legal proposition is in general true, it is also true that, “if a man dealing with another misleads him, and takes advantage of his ignorance respecting his legal position and rights, though there be no legal fraud, the case may come within the jurisdiction exercised by courts of equity.” Kerr on Fraud and Mistake, p. 90-1.

Mistake also, as well as fraud, is a ground for relief in equity. And whilst mistake, in matter of law, cannot in general be admitted as ground of relief, the maxim juris ignorantia non exousat is not universally applicable in equity. “ Mistake in law, to be a ground of relief in equity, must be of a material nature, and the determining ground of the transaction.” It was precisely so in this case. It may be a misapprehension [471]*471of the law, or of their rights, by both parties, “ or it may be a misapprehension of the law, or of his private right, by one of the parties alone.” Kerr on Fraud and Mistake 399.

If the mistake of law, or as to his private right, be that of one party only to the transaction, though the other party was not aware of it, a court of equity may, under the peculiar circumstances of the case, grant relief. “ But if ii appear that the mistake was induced or encouraged by the other party to the transaction, or was perceived by him and taken advantage of, the court will be more disposed to grant relief than in cases where it does not appear that he was aware of the mistake.” Kerr on Fraud and Mistake, p. 400. In support of this position the author cites vai’ious adjudged cases. He cites Broughton v. Hutt, where the heir at law of a shareholder in a company, the shares in which were personal estate, supposing himself, through ignorance of law, to be liable in respect of the shares, had executed a deed, taking the liability on himself, it was held that he was entitled to have the deed cancelled. Also, when a man having a legal security, gave it up in exchange for another security, upon the faith that the right which he gave up would be secured to him by the substituted security, but the substituted security proved a mere nullity, relief was given; also, where a woman renewed a note, believing that she was liable on the original note, relief was given. Ibid, p. 401. And other cases are cited. This last case is strikingly analagous to the case in hand if the defendant below executed her bonds under a mistake of law, that her intestate’s estate was liable upon the notes, for the one-half of which her bonds were given. But it is unnecessary now to decide how far courts of equity may go to relieve against a mistake of [472]*472law, as we regard the misrepresentations alleged were with regard to a matter of fact.

It was represented (2nd plea) that the notes in the possession of Milly Rice, or her agent, the plaintiff below, were subsisting debts, “ unpaid”—that they were “valid” debts, being “in full foi’ee in law against the estate.” By the first plea, that they were “lawful debts,” outstanding against the estate. “Lawful,” “outstanding,” still in force.

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Cite This Page — Counsel Stack

Bluebook (online)
26 Va. 467, 26 Gratt. 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-rices-admr-va-1875.