Clark v. Reeder

40 F. 513
CourtU.S. Circuit Court for the District of West Virginia
DecidedNovember 15, 1889
StatusPublished

This text of 40 F. 513 (Clark v. Reeder) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. Reeder, 40 F. 513 (circtdwv 1889).

Opinion

Harlan, Justice.

.1. The contract of February 29,1884, was for the sale by Reeder to Clark of a body of land in this state containing 50,096 [515]*515acres, more or less, and embraced by a patent from tlie commonwealth of Virginia to Edward Dillon, issued April 16, .1796; which land, the contract recites, is claimed and owned by Reeder by a regular chain of conveyances, the first being a tax-deed to Ward and Lawson, dated December 22, 1857, and the last a deed from C. C. Cox, dated August 27, 1870.

2. The sale was by the acre, and not in gross, — $1.70 per acre.

3. Reeder was to convey by special warranty, but he did not expect to be paid for any land a bettor right to which, by adverse title and possession, was shown to be in some one else. This is made plain by various clauses in the contract, namely: (a) The laud is described as “claimed and owned” by Reeder, (ft) The cash payment of $35,000 was to be made on the day on which Mr. Ferguson certified the title of Reeder “to bo good and valid.” (c) The balance of the purchase money was to be paid when the quantity of lands, within the exterior hounds of the Dillon patent, to which Reeder could make “good title” was ascertained by a survey. (<f) The surveying was to ascertain only whether any lands within the exterior boundaries, as established by the Barvor survey, were, “by reason of adverse title and possession,” held by “a better title” than that of Reeder.

4. If Mr. Ferguson did hot give the required certificate within the time specified, then the contract, by its terms, became void. If he gave it within the time prescribed, the balance of the purchase money, when such balance was ascertained, became payable, with interest, from the date of such certificate, until paid.

I am of opinion that the rights of the parties must be determined upon the theory that, at the date of the contract, Watts had authority, as agent for Reeder, to negotiate for the sale of the lands; though any sales or agreement to sell that he would make was to be subject to the approval of his principal. It is true that at the signing of the contract Watts did not, in fact, have authority, as agent for Reeder, to enter into an agreement for Hits sale of the lands. He had only an optional right for himself, for a limited period, and upon certain conditions, to buy the lands. But, in making the contract of February 29, 1884, he assumed to act, not only for himself, under his written agreement with Reeder, but as the agent of the latter. And it was so stated in the contract. When, therefore, Reeder approved the contract in question, without qualification, he must be held, as between himself and Clark, to have assented to Watts’ assumption of agency. It does not appear that he was informed of what; passed between Watts and Bell at or before-the contract was signed by them; but he was at liberty to inquire as to such matters, or, when approving the contract, to disclaim the agency of Watts, as well as responsibility for what the latter may have said to Bell or others in respect to the lands. TIis unqualified approval of the contract was equivalent, so far as the question of agency was concerned, to original authority to Watts to make a sale of the lands, subject to his approval as to terms. If, when the contract of February 29, 1884, was signed, Watts was guilty of any fraud, or made any false representations, that would en[516]*516title Clark to a rescission, if Watts had been, in fact, an agent to sell, then, Reeder, in taking the benefit of the contract, which, on its face, recites Watts’ agency, cannot escape responsibility for such fraud or representations upon the ground that Watts was not agent, or because he did not have personal knowledge of what passed between Watts and Bell.

The original bill seeks relief upon the ground of mutual mistake. The last amended and supplemental bill, it was said in argument, proceeds upon the ground of fraud or false representations by Watts, whereby-Reeder succeeded in obtaining a contract which Clark would not have made had he known at the outset, or before any money -was paid, what the record now discloses. But, upon careful examination of that supplemental bill, it is very doubtful whether it contains any direct, positive averment of fraud or false representations by Watts. The clauses in it that come nearest to an averment of that character are those alleging that, if the interference of the Rutter-Ettiug patent had been known or suspected by Clark, or his agent or attorney, the contract in question would not have been entered into; and—

“i/tlie existence of the said Rutter and Etting survey, and the fact that it interfered with and overlapped the said Dillon survey, had in any way come to the knowledge of the said Reeder and Watts, or either of them, before or at the date of the execution of said contract, or ¾/’they, or either of them, even suspected such interference, their said failure to make the same known to your orator, or to his said agent or counsel, before the execution of said contract, was a fraud upon your orator in law and in fact, no matter whether they, or either of them, so intended it or not.”

The supplemental bill seems to have been drawn with the view of finding out whether a fraud had been committed, and does not directly charge fraud, or such representations as would entitle the plaintiff to a rescission.

In the view, however, which I take of the case, it may be assumed that the plaintiff’s pleadings sufficiently charge fraud; and it may also be conceded, that, if it were satisfactorily proven that Watts made representations in respect to the interlock of the Kutter-Etting survey and the Dillon survey that were false, and of a material character, the plaintiff would be entitled to a rescission. I am, however, of opinion that the evidence upon that issue does not justify a decree rescinding the contract. The testimony of Mr. Ferguson and Gen. Watts is painfully conflicting, as is often the result where witnesses occupy the position, also, of lawyers in the same case. I have read and reread their depositions, and, while there are ugly conflicts between them as to material matters, I take pleasure in saying that I do not believe that either gentleman has made any statement that he did not at the time believe to be true. Looking at all the evidence, I am of opinion that the charge of fraud — assuming fraud to be sufficiently averred — is not sustained by such evidence as will justify the court in basing a decree upon that charge, or in determining the rights of the parties upon any basis except that furnished by the written documents, and such uncontradicted facts as are competent in connection with those documents.

[517]*517Undoubtedly the Rutter-Etting patent is older than the Dillon patent. It is equally clear that the former covers most of the Dillon survey, though the extent of the interlock is not made certain by the evidence. But the interlock, however serious, does not, of itself, or by itself, entitle the plaintiif to a decree setting aside the contract. Every foot of the Dillon survey might be covered by the Rutter-Etting patent, and yet .Reeder’s title, under the Dillon patent and survey, to the lands in question may be better in law than any other. The parties agreed to take the exterior boundaries of the Dillon survey, as established by Sarver, and Clark was given the right, by a survey at his own expense, io ascertain what lands within those boundaries were held by a better title than Reeder’s, “by reason of adverse title and possession.'1’

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Bluebook (online)
40 F. 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-reeder-circtdwv-1889.