Burkheimer v. Blake

76 S.E. 170, 71 W. Va. 155, 1912 W. Va. LEXIS 127
CourtWest Virginia Supreme Court
DecidedOctober 22, 1912
StatusPublished

This text of 76 S.E. 170 (Burkheimer v. Blake) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burkheimer v. Blake, 76 S.E. 170, 71 W. Va. 155, 1912 W. Va. LEXIS 127 (W. Va. 1912).

Opinion

Millee, Judge:

In an action for .damages against Blake and Bromley for alleged fraud and deceit plaintiff recovered a verdict and judgment for three thousand dollars, and defendant Blake complains of that judgment.

[156]*156The declaration, in substance, charges that plaintiff being the owner of a stock of merchandise in the City of Huntington, of the value of thirteen thousand dollars, defendants fraudulently combined and confederated to cheat and defraud him, and pursuant thereto solicited plaintiff to sell them his stock of goods upon the terms that an inventory thereof should be taken, the value ascertained, a discount of twenty per cent, deducted therefrom, and that Bromley should purchase and take three thousand dollars worth of the goods, and pay therefor by his individual notes, one for one thousand dollars at four months, and one for two thousand dollars at six months from date, and should pledge to plaintiff as collateral security therefor two twenty year guaranty gold trust bonds of the Realty Banking •& Trust Company, of the face value of one thousand dollars ■each, and that the defendant Blake should take the remainder of the goods, and pay therefor in cash and notes. That in furtherance oE their fraudulent purposes, defendants falsely and fraudulently represented to plaintiff that they intended to form a co-partnership, of which Bromley was to be general manager, that Bromley was financially responsible; and that the bonds ■of the Realty Banking & Trust Company were genuine and valuable and would furnish ample security for the payment of his notes; that James W. Hughes of Huntington, who was financially responsible, was indebted to Bromley fifteen hundred dollars, which woiild fall due at or about the time of the maturity of the first note and out of which Bromley would pay the same.

It is further alleged that these representations were wholly false, and known by defendants to be false when made, and that they were made for the purpose of obtaining three thousand dollars worth of goods from plaintiff upon the worthless notes and securities of Bromley, and when acquired to turn them over to'Blake for a small or no consideration, and without just compensation to plaintiff; that plaintiff being ignorant of the falsity of said representations, believed them to be true and relied thereon, and was thereby induced to accept said proposition, and that between the 2nd and 12th days of February, 1909, sold and delivered said goods to defendants, and accepted the notes and collateral securities of Bromley for his [157]*157share of the goods, and from Blake the notes and cash agreed to be paid by him for the goods he agreed to take, and that in consummation of the fraud and conspiracy Bromley immediately turned over to his confederate Blake his interest in the goods,, the latter paying him for his services three hundred dollars.

It is also alleged that Bromley, at the time of his purchase,, was and still is insolvent, and that his notes, past due at the-time of the suit, and the bonds given as collateral security, are without value, and that plaintiff had been defrauded and cheated out of three thousand dollars worth of his goods as aforesaid, and for which he asks damages.

Briefly stated, the alleged fraudulent representations were,, that defendants proposed to form a co-partnership, of which Bromley was to be general manager; second, that Bromley was1 financially responsible, and that the bonds of the Bealty Banking & Trust Company were genuine and valuable and ample ■security for the payment of Bromley’s notes; third, that Hughes-was indebted to Bromley fifteen hundred dollars, maturing when the first note of Bromley would mature and out of which that note would be paid.

On the trial below the contract between the parties was-proven to have been in writing, substantially as alleged in the declaration, but this contract contains no reference to any co-partnership to be formed, except what may be inferred from the character of the purchase, and contains no representations, as to the value or genuineness of-the bonds of the Bealty Banking & Trust Company, nor any reference to the alleged indebtedness of Hughes to Bromley, or that Bromley expected' or would out of that indebtedness make payment of the first note, and the last paragraph of said contract is: “It is further' understood and agreed that these are two separate and distinct sales, and that said Blake shall be in no way responsible for the purchase made by Bromley, and said Bromley in no way responsible for the goods purchased by said A. G-. Blake.”

The trial was had in the court below on the issue joined cm the plea of not guilty by both defendants, but Blake alone has assigned error in this Court.

It is contended here on Blake’s behalf that there is no proof of the fraud and conspiracy alleged, and that the evidence wholly [158]*158fails to establish that the several alleged false representations were in fact made, or if made, that they were in fact false, or made to induce plaintiff to part with his goods, or that plaintiff relied thereon, or that any fraud was committed.

We will consider these alleged false representations in the order named, with the evidence bearing thereon, keeping in mind the charge that the ultimate objects of defendants were to procure the goods purchased in the name of Bromley for the benefit of Blake, without just compensation, and to defraud plaintiff.

First, as to the proposed partnership. Burkheimer alone swears that such representation was made. Bromley, whom plaintiff made 'his witness, was not asked and did not testify, either on direct or cross examination, that either he or Blake represented-to plaintiff that a partnership was to be formed by the purchasers. Blake did not testify in the case. Besides Burkheimer’s evidence, the character of the purchase was such as to imply a proposed partnership; at least there was nothing in the singleness of the purchases described in the contract to negative the positive testimony of Burkheimer, and as neither Bromley nor Blake denied the positive evidence of Burkheimer, the jury had the right to believe Burkheimer and find accordingly.

But if false, was the representation material? We think it was material in this, that as Burkheimer was to part with three thousand dollars worth of goods to Bromley, with only two thousand dollars of bonds as collateral, he would naturally rely on the interest Bromley was to acquire in the partnership as additional security for the payment of his notes. If Burkheimer had known, as Bromley admits in his testimony, that he was acting for Blake and intended immediately on obtaining possession of the goods to turn over his interest therein to Blake for one hundred and fifty, not three hundred dollars, as he swears he did, and that Blake was to get the goods, for which Bromley had obligated himself to pay three thousand dollars, for this nominal consideration, he evidently would not have made the sale to Bromley. We think the jury had the right to conclude from all the evidence that there was fraud and collusion in this repre[159]*159sentation and that the plaintiff relied thereon, and was damaged thereby.

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76 S.E. 170, 71 W. Va. 155, 1912 W. Va. LEXIS 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burkheimer-v-blake-wva-1912.