Cook v. Gill

34 A. 248, 83 Md. 177, 1896 Md. LEXIS 33
CourtCourt of Appeals of Maryland
DecidedMarch 25, 1896
StatusPublished
Cited by12 cases

This text of 34 A. 248 (Cook v. Gill) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cook v. Gill, 34 A. 248, 83 Md. 177, 1896 Md. LEXIS 33 (Md. 1896).

Opinion

Boyd, J.,

delivered the opinion of the Court.

The appellee sued the appellant to recover damages for alleged false, fraudulent and deceitful representations made by the latter to him which induced him to purchase fifty [186]*186shares of stock of the Campbell Barrel Company at $75 per share, whereby he was cheated and defrauded. The case was tried before the Court without a jury and judgment was rendered in favor of the plaintiff. At the close of the plaintiff’s testimony the defendant offered a prayer that, “ the plaintiff having offered no evidence legally sufficient to sustain the material averments of the declaration, the verdict should be for the defendant.” It was rejected, and the defendant proceeded with his evidence. At the conclusion of the testimony the plaintiff offered one prayer which was granted, and the defendant twelve, the first, second, fourth; fifth, eighth, ninth and twelfth of which were rejected as offered,- but the fifth, eighth and ninth were granted with some modifications.'

The only questions before us are presented by two bills of exception which contain the rulings of the Court on those prayers. The first asked the Court to say that “ the plaintiff has offered no evidence legally sufficient to entitle him to recover under the pleadings in this case and the verdict should be for the defendant.” The' second was similar to the one previously offered, and we will consider the three together. The appellant contends they should have been granted because the plaintiff ’s proof failed to establish either the alleged false representations or that he had relied altogether and exclusively on them, or that the stock was at the time -of the purchase worth less than he had paid for it.

The plaintiff testified that in February, 1893, desiring to purchase some stock in the Crown Cork and Seal Company, he called on a Mr. Morton for that purpose, who directed him to the defendant. He inquired of the latter if he knew of any of that stock for sale. He said he did not, and asked him why he did not buy some of the Barrel Company stock, to which the plaintiff replied he did not want that. Afterwards Mr. Cook called on him, urged him to buy some of the Barrel Company stock, and said, “ I will try to buy it for you as low as I can.” ‘ He called [187]*187on him several times at his place of business trying to induce him to buy that stock, and afterwards called at his house, and, to use the language of the witness, “ insisted on me buying some of this Barrel Machine Company’s stock ; that it was a dead sure thing, and that he would let me in on the ground floor ; that there was a gentleman who had some of that stock who had a mortgage on his house and he could buy it from him for $80 a share. I told him I didn’t want it. The third time he came to the house 1 said, ‘ I will give you $70 for that if it is so good.’ ” He also testified that Mr. Cook said eighty dollars was the price eveiybody paid for it, and he would see if he could buy it for seventy dollars, but that he did not think he could ; that Mr. Cook told him he would not sell his stock at any price. Afterwards the defendant said he could not buy it at seventy dollars and that he, plaintiff, had better take it at eighty dollars. Finally he told him “all right, tell him I will give him $75 for it.” He said, “ I will go and see him.” The next evening Cook said, “ 1 have thaL stock for you, 50 shares, for $3,750.00.” He further testified that he gave Cook his check for the amount upon the statement made by him that the man required that sum for his stock, that he never heard of the stock until Cook spoke of it, that he had great confidence in Cook, and he had no knowledge of the value of the stock himself except what he got from Cook, who was secretary of the Barrel Company, and induced him to pay seventy-five dollars a share for it. He admitted that he had, at Cook’s request, looked at the machine, and after his inspection of it said, “ I told him that if what Mr. Cook told me was true, it might be a good investment—I did not know—provided I was on the ground floor.” His evidence tended to show that he bought the stock and paid seventy-five dollars a share for it because the defendant, in whom he trusted, represented it as worth eighty dollars, and that he could procure it by reason of the fact that the owner had a mortgage on his house and needed the money to pay it offj [188]*188•while the fact was the defendant already owned and held twenty-five of the fifty shares of stock sold the plaintiff, for which he had paid Mr. Hoopes thirty dollars per share, and had an option on twenty-five more shares at fifty dollars per share, which he got, and delivered the fifty shares to the plaintiff. Just what he paid for the twenty-five shares on which he had the option is not clearly shown. Mr. Cook said he got “ a slight reduction ” from the price named in the option, but did not remember just what he did pay for it, although Mr. Hoopes testified it was fifty dollars per share. The defendant did not procure the stock from a third person to enable the latter to take up a mortgage on his house, but it belonged to the defendant himself and he made a profit of forty-five dollars per share on twenty-five shares and twenty-five dollars or more per share on the balance. It is true that some shares had been sold as high as eighty dollars, but that was not the price everybody paid for it, as the defendant knew from his dealings with Hoopes, and in point of fact he held one hundred and sixty shares which he had received in “ promoting the company.” Mr. Cam'pbell testified that the defendant, in February, 1893, came into the office of the company and said, “ That is the way to do, or something to that effect. He said, I have just made a couple of thousand dollars and I will call the day off and go home. * * * I said, what was it, and he said he had got stock from Mr. Hoopes for thirty dollars and sold it for seventy or seventy-five dollars, and thought that was doing pretty well, and thought he would shut up and go home. I said, ‘ Who did you sell it to,’ and he said, Mr. Gill, and that Mr. Hoopes had some other stock that he would probably get hold of yet.” The testimony of the plaintiff, which we must assume to be true in considering these prayers, is thus to the effect that the defendant did knowingly make false representations to the plaintiff, with the intent to induce him to buy the stock, and did thereby make the sale which would not have been consummated but for the false representations.

[189]*189As to whether or not the stock was at the time of sale worth less than he paid for it, the plaintiff testified in answer to the question “ Did you try to dispose of the stock?” “ Of course, I was trying to sell it all the time, but I couldn’t sell it at any price. A few months after that I ■would have been glad to have taken twenty-five dollars a share for it.” Sometime afterwards Mr. Rosenthal sold his stock to the plaintiff, the defendant and’ others at seventeen dollars per share. But at the very time the sale was made by the defendant to the plaintiff the former bought of Hoopes twenty-five shares at "a slight reduction” from fifty dollars per share, and had previously bought the other twenty-five shares at thirty dollars. Hoopes was superintendent and manager, and the defendant was secretary of the company, and both were familiar with its affairs. That was certainly some evidence that the stock was not worth seventy-five dollars per share. It is true that the plaintiff did in July, 1893, sell twenty-five shares to Mr. Morton, who was president of the company.

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Cite This Page — Counsel Stack

Bluebook (online)
34 A. 248, 83 Md. 177, 1896 Md. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cook-v-gill-md-1896.