Connelly Co. v. Schlueter Bros.

220 P. 103, 69 Mont. 65, 1923 Mont. LEXIS 221
CourtMontana Supreme Court
DecidedNovember 13, 1923
DocketNo. 5,232
StatusPublished
Cited by20 cases

This text of 220 P. 103 (Connelly Co. v. Schlueter Bros.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connelly Co. v. Schlueter Bros., 220 P. 103, 69 Mont. 65, 1923 Mont. LEXIS 221 (Mo. 1923).

Opinion

Mr. JUSTICE HOLLOWAY

delivered the opinion of the court.

About August 19, 1920, the plaintiff sold and delivered to the defendants a twenty-five ton portable screening plant, complete, for the agreed price of $2,199.53. This action was brought to recover the purchase price, and the complaint follows the form usually employed in such cases. The answer admits 'all the material allegations of the complaint, and then sets forth four affirmative defenses. Issues were joined by reply and the cause tried, resulting in a verdict for the defendants. From the judgment entered thereon, plaintiff appealed.

1. There is not any merit in the contention made that the court erred in permitting defendants to open and close the case. The defendants had the affirmative of every issue raised by the pleadings, and the burden rested upon them to produce their evidence first. (Secs. 9349 and 10616, Rev. Codes 1921.) Their general denial of the legal conclusion contained in the complaint “that the said purchase price of $2,199.53 is now long past due and owing from defendants to the plaintiff” did not raise an issue of fact.

2. The principal contention made is that the answer does not state facts sufficient to constitute a defense or counterclaim. Upon the trial the first and third defenses were abandoned, and we may disregard the fourth, since it is a mere repetition of the second defense, except that the second includes a counterclaim for the amount paid by defendants for freight from Aurora, Illinois, to Finch, Montana.

Stripped of the great mass of superfluous words, the following allegations, in substance, are to be found in the second [70]*70affirmative defense: That at the time the machine was purchased the defendants were contractors engaged in road construction work; that they were in need of a machine which would screen gravel and elevate it for loading; that the negotiations which resulted in the sale were conducted by D. ft. Petrie, the agent of the plaintiff, and by the defendant Henry Schlueter; that Petrie represented to defendants that he was skilled and experienced in furnishing road construction machinery of this character; that he knew the kind and character of machinery which defendants needed, the purpose for which it was to be employed and all the circumstances surrounding their work; that, for the sole purpose of inducing the' defendants to purchase the machine in question, Petrie willfully, falsely and fraudulently represented that the machine in question was adapted to the use for which the defendants desired to employ it, and that it would elevate, screen, and move 350 to 400 cubic yards of gravel per day for the work upon which defendants were engaged; that in fact the machine was wholly unfit for defendants’ purposes and worthless to them, and would not elevate, screen and move more than 100 cubic yards of gravel per day, which facts were known to Petrie when he made the representations above; that defendants relied upon the superior knowledge, skill and experience of Petrie, and upon representations made by him when they purchased the machine; that they did not have any opportunity to examine the machine until after the purchase was made and the machine was delivered, and that, as soon as they discovered that the machine was useless for the purpose for which they intended it, they rescinded the sale and returned the machine.

In stating the elements of actionable fraud predicated upon false representations, the authorities do not always employ the same terms. Local statutes are responsible for the variations to some extent, but, speaking generally, it will be found upon analysis that there is singular unanimity of views. In 26 C. J. 1062, it is said that the elements are (1) a representa[71]*71tion; (2) its falsity; (3) its materiality; (4) the speaker’s knowledge of its falsity or ignorance of its truth; (5) his intention that it should be acted upon -by the person and in the manner reasonably contemplated; (6) the hearer’s ignorance of its falsity (7) his reliance upon its truth; (8) his right to rely thereon; and (9) his consequent and proximate injury. All these elements, however, are said to be comprehended in the more general terms: Representation, its falsity, scienter, deception, and injury. (26 C. J. 1063.)

In the case of Butte Hardware Co. v. Knox, 28 Mont. 111, 72 Pac. 301, where the defendant relied upon false representations of the seller to defeat the plaintiff’s right to recover the purchase price of a machine, this court announced the rule that the answer must disclose with reasonable certainty the following facts: (a) That certain representations were made by the seller; (b) which the purchaser had a right to rely upon; (c) that the representations were false; (d) that the purchaser believed them to be true; (e) that he relied upon them; (f) was induced by them to make the purchase; and (g) in consequence thereof was injured. The doctrine of that case has 'been approved repeatedly, and has never been departed from in this jurisdiction, though the rule has not been stated in precisely the same terms on every occasion.

Measuring the pleading before us by that standard, we observe (a) that it is alleged directly that Petrie made the representations set forth above. It is contended by plaintiff, however, that assuming the representations were made as alleged, they do not furnish a foundation upon which actionable fraud may be predicated. It is the general rule that to constitute actionable fraud the misrepresentation must relate to an existing fact or a fact which has existed, thereby excluding mere expressions of opinion. (Buhler v. Loftus, 53 Mont. 546, 165 Pac. 601.) An exception to the rule is illusated in Como Orchard Land Co. v. Markham, 54 Mont. 438, 1 Pac. 274.

[72]*72The representation that the machine in question was fit and proper for the work for which defendants desired it was, under the circumstances pleaded, a representation of fact. In 1 Black on Rescission and Cancellation, section 86, it is said: “But, where an article is sold with knowledge that it is intended to be used for a particular purpose, a representation that it is fit and suitable for that special purpose is not an expression of opinion as to the future, but a representation of an existing fact.”

The representation that the machine had capacity to screen and elevate from 350 to 400 cubic yards of gravel per day was likewise a representation of fact. In principle there cannot be any distinction between that statement and a statement that an engine will develop eight horse-power, that a car has a carrying capacity of 40,000 pounds, or a tank a capacity of 1,000 gallons. One is just as susceptible to demonstration as any of the others.

But assuming that the capacity of the machine was not actually known to Petrie, and might have been a proper subject upon which he could have expressed an opinion with immunity to his principal within the rule above, it does not follow that defendants have not stated as case of actionable fraud in view of the relative situations o? the parties as disclosed by the answer. In 2 Pomeroy’s Equity Jurisprudence, section 878, it is said: “Whenever a party states a matter which might otherwise be only an opinion, and does not state it as the mere expression of his own opinion, but affirms it as an existing fact material to the transaction, so that the other party may reasonably treat it as a fact, and rely and act upon it as such, then the statement clearly becomes an affirmation of fact within the.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Beierle v. Taylor
524 P.2d 783 (Montana Supreme Court, 1974)
Ballenger v. Tillman
324 P.2d 1045 (Montana Supreme Court, 1958)
Walker v. Hustad
154 P.2d 483 (Montana Supreme Court, 1944)
Hodgkiss v. Northland Petroleum Consolidated
57 P.2d 811 (Montana Supreme Court, 1937)
Gordon v. Rose
33 P.2d 351 (Idaho Supreme Court, 1934)
Griffiths v. Thrasher
26 P.2d 995 (Montana Supreme Court, 1933)
Friedrichsen v. Cobb
275 P. 267 (Montana Supreme Court, 1929)
Cook v. Galen
272 P. 250 (Montana Supreme Court, 1928)
Advance-Rumely T. Co., Inc. v. Wenholz
258 P. 1085 (Montana Supreme Court, 1927)
Cramer v. Deschler Broom Factory
255 P. 346 (Montana Supreme Court, 1927)
Oregon Mortgage Co., Ltd. v. Kunneke
245 P. 539 (Montana Supreme Court, 1926)
Courtney v. Gordon
241 P. 233 (Montana Supreme Court, 1925)
Mutual Oil Co. v. Hamilton
236 P. 545 (Montana Supreme Court, 1925)
Ray v. Divers
234 P. 246 (Montana Supreme Court, 1925)
Bump v. Geddes
226 P. 512 (Montana Supreme Court, 1924)
Campana v. Dobry
221 P. 540 (Montana Supreme Court, 1923)
Healy v. Ginoff
220 P. 539 (Montana Supreme Court, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
220 P. 103, 69 Mont. 65, 1923 Mont. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connelly-co-v-schlueter-bros-mont-1923.