Duguid v. Coldsnow

132 N.E. 659, 76 Ind. App. 545, 1921 Ind. App. LEXIS 92
Indiana Court of Appeals·Decided November 2, 1921·No. No. 11,019·Published·Cited by 4 cases

Opinion

Nichols, P. J.

1.substantial averments of the complaint in this action, so far as here involved, are that on February 1, 1919, and for a long time prior thereto, appellees were the owners, by entireties, of a 100-acre farm situated in Lenawee county, Michigan, upon which there was a mortgage of $1,200. Upon the same date appellants Duguid and McCleery were the. owners of a certain brick building, situated in the town of Ashley, Dekalb county, Indiana, upon which there was a $3,600 mortgage, the record title to said building being in said McCleery. Said Duguid and McCleery conspired with appellant Gundrum, a real estate agent, for the purpose of cheating and defrauding appellees out of their 100-acre farm, and for the purpose of gaining the confidence of appellees, and in furtherance of said conspiracy said Gundrum held out to them the splendid opportunities offered for making money if they would but trust and allow him to handle their farm for them, whereupon a contract was entered into on December 27, 1918, between appellees and said Gundrum whereby he was to make some disposition of the farm. Sometime in January, 1919, said Gundrum approached appellees with a proposition that he had found the building owned by said Duguid located in Ashley, Indiana, that he could exchange for their farm, and by fraudulent representations as to the value of such building, and as to business conditions in said town of Ashley, induced appellees to exchange their farm for the Ashley building, receiving a deed for the building from McCleery and making a deed to McCleery for their farm on February 1, 1919. [547] It is upon the fraudulent representation made by appellant Gundrum, while acting as the agent of his co-appellants, Duguid and McCleery, that appellees base their action for damages.

There was a trial by jury, and a verdict in favor of appellees for $2,750, upon which judgment was rendered, after appellants’ motion for a new trial was overruled. This ruling of the court is the only error discussed. The reasons for the motion are hereinafter considered.

1. 2. 1. [548]*5483. 1. [547] In presenting the question of the insufficiency of the evidence, and the error of the court in overruling appellants’ respective motions to direct the verdict, appellants say that because of the written contract of agency between appellees and appellant Gundrum, whatever was done by Gundrum in getting appellees to exchange their farm for Duguid’s property bind them, and if Gundrum deceived or misled them, or failed to carry out his promise to exchange the property for another farm, it is a wrong for which Gundrum must answer, and if Duguid profited by the trade he cannot be held for damage, unless he participated in the misconduct of Gundrum. This contention may be conceded, but it must be kept in mind that it was Gundrum’s duty as such agent to act in the utmost good faith and to give appellees all the information which he possessed which might in any way influence them in the deal. Firebaugh v. Trough (1914), 57 Ind. App. 421, 107 N. E. 301; Vandalia Coal Co. v. Alsopp (1915), 61 Ind. App. 649, 109 N. E. 421; Smith v. Fiscus (1916), 62 Ind. App. 156, 111 N. E. 203. This he did not do. The evidence shows that he misrepresented the value of the property to appellees, and that he misrepresented, as to the commercial conditions of the town of Ashley, telling appellees falsely, among other things, that the railroad [548] shops of the Wabash railroad were located there, which representations appellees believed, relying on Gun-drum’s statements. At this time, Gundrum was acting as Duguid’s agent unknown to appellees, and he received $300 for his services from Duguid. There is controversy as to this fact, as well as to many other facts in evidence, but it is not the province of this court to weigh the evidence. If there is any evidence as to a disputed fact, though it be circumstantial, such evidence must prevail. Tucker v. Hyatt (1898), 151 Ind. 332, 51 N. E. 469, 44 L. R. A. 129; Firebaugh v. Trough, supra. Under such conditions, appellees were not bound by Gundrum’s statements. Mignault v. Goldman (1919), 234 Mass. 205, 125 N. E. 189; Kluge v. Ries (1917), 66 Ind. App. 610, 117 N. E. 262. But as Gundrum was agent for Duguid and McCleery, in consummating the deal, they were responsible for his false statements, whether they authorized them, or knew of them or not. Romine v. Thayer (1921), 74 Ind. App. 536, 128 N. E. 456; Mignault v. Goldman, supra; Quinlan v. Limbert & Co. (1921), 75 Ind. App. 429, 130 N. E. 821.

Appellants contend that there was no evidence of fraud for the reason that appellees made their own investigation, but we are impressed that the investigation in this case was directed much as the investigation in Romine v. Thayer, supra, and that appellees relied upon Gundrum’s statements rather than upon their meager investigation.

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Duguid v. Coldsnow, 132 N.E. 659, 76 Ind. App. 545, 1921 Ind. App. LEXIS 92 (Ind. Ct. App. 1921).

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