Estell v. Myers

54 Miss. 174
CourtMississippi Supreme Court
DecidedOctober 15, 1876
StatusPublished
Cited by10 cases

This text of 54 Miss. 174 (Estell v. Myers) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estell v. Myers, 54 Miss. 174 (Mich. 1876).

Opinion

Simrall, C. J.,

delivered the opinion of the court, then composed of Simrall, C. J., Tarbell and Chalmers, JJ.

This appeal is prosecuted from the final decree of the Chancery Court, and presents two questions: first, whether Myers established a right to recoup damages; and, secondly, if so, upon what principles shall they be assessed or estimated.

The defence is made to the bill in chancery brought by Estell to enforce the security for $40,000, the unpaid debt for a plantation and personal property thereon, sold by him to Myers, .and is to the effect that at the time of the sale of the property, preceding and concurrent therewith, Estell, with the view and design to overreach, deceive and defraud Myers, falsely and fraudulently represented, that, with a certain break in the Vick front levee hooped and repaired, the land would be free from [184]*184overflow by the Mississippi River, except that in very high and long-continued floods some ten or fifteen acres of the lowest land, and not more, would be overflowed. The break was hooped and repaired early in 1866; but in 1867, while said levee was standing unbroken, more than three-fourths of all the land was overflowed, and the river rising rapidly when the levee broke, rose some two feet more thereafter, whereby the whole plantation was overflowed, and would have been inundated, if the levee had not broken. Estell knew that the plantation had been overflowed in former years, when said levee was up and unbroken, and that Myers was a stranger in the country, uninformed as to the liability of the land to (overflow; yet Estell falsely and fraudulently concealed that the lands had been overflowed as aforesaid whilst the Vick front levee was up. Relying on the truth of these statements and representations, Myers purchased, in 1865, a half-interest in the plantation and stock for $81,000, all of which has been paid; and, in 1866, purchased the remaining half of the property for $40,000, payable as follows: $5,000, Feb. 1, 1867; $17,500, Feb. 1, 1868; $17,500, Feb. 1, 1869.

Myers alleges, further, that the plantation was entirely overflowed in 1867; that he made, with sixty hands, less than one hundred bales of cotton, when he ought to have made five hundred ; that, by drowning, he lost one hundred and fifty head of cattle, sixty head of sheep, and two mules, worth $4,000 ; that his crop was greatly reduced in 1868 by the overflow, so that he only made one hundred and seventy-one bales of cotton. He estimates his damages as equal to the principal and interest of his debt. In an action at law upon the notes, between the same parties, reported in 47 Miss. 4, 15, it was held that the same defence set up in a special plea was good to the extent of the damages sustained.

We do not propose to review the testimony. The Chancellor was of opinion that the testimony proved the misrepresentations. We are not prepared to say that his conclusion is erroneous, but think that the preponderance of the evidence establishes that misrepresentations were made by Estell, which were inducements to Myers to make the purchase. These had reference to the comparative safety of the plantation from [185]*185overflow. Being false, it is plain that Estell has been damaged, and that he may recoup from the purchase-money to the extent of his injury, though the damages should equal in amount the debt claimed.

By what rules shall the damages be estimated ? The aggrieved party must be compensated for those consequences that, according to the ordinary course of things, or as sometimes said, “ naturally,” flow from the injury. This is the primary rule, and of universal application ; for a man must be held to intend, and must be accountable for, the ordinary results of his acts. But, secondly, we may advance a step further, and include those effects so intimately connected with the nature and subject-matter of a contract as fairly to be deemed to have been in the contemplation of the parties. And, thirdly, damages which may not naturally and necessarily ensue from the breach, or fraudulent act, but which, by the terms of the agreement or direct notice, were brought within the expectation of the parties. Vicksburg Railroad v. Ragsdale, 46 Miss. 458, 483, and cases there cited.

Myers, in making his purchase, was willing to assume a certain amount of risk. He seemed to be aware that none of the alluvial lands of the Mississippi River delta were absolutely free from overflow, but that the liability of some to be submerged was greater than others. He directed his inquiries, therefore, in reference to the property about which he was negotiating, to its relative and compaiative danger from the water; the points of exposure and peril; the direction the water would take; and the securities that must be chiefly looked to. If in these matters he relied upon the declarations and assurances of Estell, made from long residence and observation on the plantation, and did not trust to his own observation and inexperienced judgment, then the declarations and assurances may be accepted as truths, become inducements to the contract, and of force as warranties. Nor does it matter whether such declarations were knowingly false, or were made with a fraudulent intent or not: if they were material and did actually mislead, the injury is the same. Oswald v. McGehee, 28 Miss. 340, 351. If a party innocently misrepresents a material fact by mistake, it is equally as con-[186]*186elusive as if knowingly false ; for it operates as a surprise and imposition on the other party. Story Eq. Jur. § 193.

In such case|, the vendee has his election to rescind or affirm the contract. If he takes' the former course, he must proceed presently, within a reasonable time after he discovers that the representations are false.. If, however, he abides by the contract, he may sue for the deceit; or he may allege his damages in recoupment of the purchase-money. Nor are his rights prejudiced by delay. So long as the remedy is preserved to the vendor on his security for the purchase-money, the right remains to the vendee to recoup his damages.

It would hardly be disputed that the immediate and proximate injury sustained by Myers would -be compensated by allowing him the difference in the value of the land as it actually is, compared with its value if it had been what it was represented to be. Myers bargained for it on the predicate that it would be safe from overflow, except a few acres, — ten or fifteen, — if the Vick front levee did not break. It was disclosed that not only the front proprietor, but also several others, on Lake Bolivar, were interested in that levee ; for, if that should give way, all of them would be submerged. These proprietors would make common cause to keep that levee staunch and safe. It turned out, however, that the Vick levee did not protect the plantation to the degree represented; for the flood of 1867 submerged three fourths of the plantation from openings in the levee above that point, and Avas rapidly encroaching on the other fourth when the Vick levee gavervay, and overflowed the whole of it. It was shown, too, in evidence, that in former years, with the Vick levee standing, the plantation had been overflowed.

It is a much more difficult problem to ascertain the difference in the value of a plantation, because of its increased exposure to overflows, than in most other instances of false representations. In the sale of goods by sample or warranty as to quality, the measure of damages is the difference in the value of the goods, as represented to be, and their actual value.. In Gibson v. Marquis, 29 Ala.

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Bluebook (online)
54 Miss. 174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estell-v-myers-miss-1876.