Dubovy v. Woolf

143 A. 58, 127 Me. 269, 1928 Me. LEXIS 164
CourtSupreme Judicial Court of Maine
DecidedSeptember 4, 1928
StatusPublished
Cited by1 cases

This text of 143 A. 58 (Dubovy v. Woolf) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dubovy v. Woolf, 143 A. 58, 127 Me. 269, 1928 Me. LEXIS 164 (Me. 1928).

Opinion

Bassett, J.

This is a bill in equity brought by the vendee of real estate to set aside the conveyance because of fraudulent representations of the vendor. The sitting Justice sustained the bill and the case comes before this court on appeal from his decree setting aside the conveyance and ordering the parties to do certain things necessary to restore them to their original positions.

The defendant, Joseph B. Woolf, owning, subject to mortgages aggregating $6,100, a double tenement house and lot on Washington Avenue in Portland, placed it in the hands of real estate agents for sale. The plaintiff, Leo Dubovy, through the instrumentality of a real estate broker, with whom the property was listed, visited the premises with the broker and the defendants, Mr. and Mrs. Woolf. The upstairs tenement was closed and could not be seen on account of the absence of the tenant. Upon inquiry, made to Mrs. Woolf, who was acting as agent for her husband, she informed Mr. Dubovy that the tenement upstairs was similar to the tenement downstairs. The justice found that from her statements Mr. Dubovy was justified in understanding that the two tenements were similar in construction and condition.

Immediately following the visit to the house and the statements of Mrs. Woolf, Mr. Dubovy entered into a written contract with Mr. Woolf for the purchase of the property for $7,500, assuming the mortgages thereon, giving a third mortgage on it for, as finally determined, $400 and a second mortgage for $1,250 on another house and lot on Urant Avenue owned by Mr. Dubovy.

[271]*271Immediately after the execution of the sale and of the required deed and mortgages, the plaintiffs, Mr. and Mrs. Dubovy, visited the premises to take possession and then for the first time discovered and learned as alleged that the upstairs tenement was not similar to the downstairs tenement in construction and condition but was out of repair, the ceilings in certain rooms being broken and fallen down, the plaster on walls of certain rooms cracked and the floor of the front room being of soft wood and without hardwood border like the room beneath.

Thereupon the plaintiffs without delay notified the defendants that the property had been misrepresented to them and they would not abide by the sale and, expressing a willingness to reconvey to Mr. Woolf the property, demanded a return of the consideration paid.

The sitting justice found: “Considerable evidence was offered as to the actual condition of the upstairs rent, and while an employee of the defendant Woolf testified that he repaired ceilings and walls at an expense of $13, in the light of common knowledge I find that the defects which appear from the evidence to have existed could not have been properly remedied for a price any where near as small as $13. If $13 were the cost of the repairs made, it is fair to infer the repairs were most superficial and could not have restored the property to the condition in which Mrs. Woolf represented it was at the time she stated its condition to Mr. Dubovy. Furthermore, a hardwood border, under present cost of labor and material, would cost a somewhat substantial sum and its inclusion would be necessary to permit the upstairs rent to conform in construction with the one below. While these defects are not substantial in value compared to the purchase price of the house, they materially effect the value of the property. '

“It is clear that Mrs. Woolf made the representations either knowing them to be untrue, or without knowledge as to whether they were true or not. They were, in fact, untrue and in equity constitute a fraud upon the plaintiffs.

“As to the materiality of the defects, I think it follows the rule stated by Mr. Pomeroy in Section 898 of his work. ‘If any pecuniary loss is shown to have resulted the court will not inquire into the extent of the injury. It is sufficient if the party misled has [272]*272been very slightly prejudiced, if the amount is at all appreciable.’ ”

The justice found that the defendants made an affirmative statement to Mr. Dubovy, in effect that the two tenements were similar in construction and condition, that the statement was not true, that the defendants either knew it to be untrue or made it without knowing whether or not it was true, and that Mr. Dubovy acted in reliance upon it. These elements essential and sufficient in equity to establish fraudulent misrepresentation, Braley v. Powers, 92 Me., 203, 209; Richards v. Foss, 126 Me., 413, 415; Pomeroy’s Eq. Jur., 4th Ed., Sec. 876 et seq., were fully supported by the evidence and the defendants raise no point with reference to them.

But another element is essential, the statement or representation must be material; that is, it must be an inducement to action and as such relied upon, and it must also be so material to the interests of the party relying upon and acting upon it that its falsity causes him some pecuniary loss or injury. Pomeroy’s Eq. Jur., Sec. 898 and note a; Story’s Equity Jur., 14th Ed., Sec. 289.

The defendants base their appeal on a failure to establish this element, contending that there was only evidence that the injury was so trivial that equity will not take jurisdiction, that the conclusion of the sitting justice of larger injury was based not on evidence but on “common knowledge” beyond the proper limits of which it is apparent the justice went in his findings, that the rule relied upon by-the justice is not the rule under the decisions of this court, and consequently that the finding of fraudulent misrepresentation was incorrect as a matter of law.

First, as to the amount of the injury. The defendants claim that the injury was only the amount necessary to repair the plastering and that was $15. The evidence as to the actual condition of the ceilings and walls of the upstairs tenement was coñflicting. An employee of the defendant testified that he repaired all the plastering and that between thirteen and fifteen dollars would have paid for it. There was no evidence of the amount of time taken to do it or the price of such labor. But the court as a matter of common knowledge knows in a general way the price of labor, 23 Corp. Jr., 150; Bell v. Barnet, 2 J. J. Marsh, 516 (Ky.) ; Opinion of the Justices, 231 Mass., 603, 610. From such [273]*273knowledge and his conclusion as to the actual condition of the walls and ceilings, the justice drew the further conclusion that if only $15 were required, the work done was superficial and repairs to put the plastering of the upper tenement into the same condition as the lower could not have been made “for a price anywhere near as small as $13.” This conclusion was logically and legally justified.

But the defendants do not refer to the floor of the front or living room which the justice found would require a hardwood border to correspond with the living room below. No evidence was presented as to the size of the room or of the border or of its cost. But from the evidence as it was, the finding that such a border would cost “a substantial sum” was supported by it.

The conclusion as a matter of fact, that the defects would require some substantial pecuniary expense to repair, was supported by the evidence. The actual total or approximate total was not in evidence and was not found.

Second, the defendants contend that the injury was “trivial” and rely upon Woodbury v. Portland Marine Society,

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Bluebook (online)
143 A. 58, 127 Me. 269, 1928 Me. LEXIS 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dubovy-v-woolf-me-1928.