Ettlinger v. Weil

94 A.D. 291, 87 N.Y.S. 1049
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 15, 1904
StatusPublished
Cited by6 cases

This text of 94 A.D. 291 (Ettlinger v. Weil) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ettlinger v. Weil, 94 A.D. 291, 87 N.Y.S. 1049 (N.Y. Ct. App. 1904).

Opinion

McLaughlin, J.:

This action was brought to recover damages for alleged false representations as to rentals in the sale of real estate.

The complaint alleged in substance that the defendants induced the plaintiff to purchase a building in the city of New York by falsely and fraudulently representing that a store in it was leased to the firm of Carroll & Co. for a period of two years at a rental of $13,000 per year," when, in fact, it was only rented for $10,500 per year, and by reason of such false and fraudulent representations, upon which the plaintiff relied, he had sustained damage in the sum of $50,000, for which judgment was asked. The answer admitted the sale, but denied all the allegations of fraud.

At the trial it appeared that on the 4th of June, 1897, as the result of. previous negotiations, an agreement was entered into between the parties to this action, by which the defendants agreed to sell and the plaintiff to purchase certain real estate with a twelve^ gtory building thereon, situate in the city of New York, for the sum; [293]*293of $900,000, the purchase price to be paid by the transfer of certain property, the execution of a mortgage for a given amount, and the balance in cash ; that during the negotiations which finally culminated in the execution of the agreement, the plaintiff requested one Beringer, a real estate broker who represented the defendants, to furnish a statement of the rentals of the defendants’ building, in response to which he produced a letter signed by the defendants, in which appeared the statement that: The store is rented to Wm. Carroll & Co. at $13,000 per annum to Feb. 1, 1899, with privilege of renewal at $15,000,” and subsequently the defendant Mayer made substantially the same statement to the plaintiff; that when the parties met for the purpose of executing the agreement the plaintiff, through his attorney, requested the defendant then present (Mayer) to sign a written statement to the effect that the leases were genuine and correctly expressed the rent which the tenants had agreed to' pay; that Mayer refused to sign such statement, was seemingly indignant because his word in this respect was questioned, and then assured the plaintiff that the leases spoke for themselves, were correct and genuine, and no rebates or concessions in rents had been made. It also appeared that the agreement referred to the Carroll lease, as well as to two others, all of which were produced and initialed by the parties; that the agreement was thereupon executed and a few days later was consummated by the delivery of deeds, and the plaintiff, on or about July 1, 1897, went into possession of the property transferred to him, from which time until the expiration of its lease Carroll & Co. paid rent as provided therein at the rate of $13,000 per year; that while such payments were made to the plaintiff, Carroll & Co. did not, during the entire term, pay at that rate, inasmuch as when the lease was signed it was agreed between them and the defendants that the lease should provide for the payment of an annual rental of $13,000, but allowances would be made by way of deductions, which would make the rent in fact $10,500 ; that such allowances were made, and the same being insufficient by $1,666.66 at the time plaintiff went into possession to bring the rental down to $10,500, the defendants for that purpose, intermediate the signing of the agreement and the delivery of the deed, gave to Carroll & Co. cash to that amount.

The firm of Carroll & Co., at the expiration of its lease, refused [294]*294to renew at a rental in excess of $12,000, and the plaintiff then for the first time ascertained that the actual rent which that firm had paid during the term specified in the lease was $10,500, instead of $13,000, as represented by the defendants, and that the option providing for renewal at $15,000 per annum was not inserted at its request. He. thereupon brought this action to recover the damages alleged; to have been sustained by reason of defendants’ false representations as to the Carroll rent. He had a verdict for $6,000, «and from the judgment entered thereon, and an order denying a motion for a new trial, defendants have appealed.

I think the judgment appealed from should' be affirmed. It is true that the testimony on the part of the plaintiff tending to establish the foregoing facts was, in some respects, and especially the false representations as to the Carroll rent, contradicted by testimony offered upon the part of the defendants. The defendant Mayer denied explicitly that any representations were made as to the rent paid by Carroll & Co. or that any concessions had been made to that firm, and in this respect he was corroborated by several witnesses. Notwithstanding this fact,-at the conclusion of the trial, it was for the jury to say whether such representations were made, and if so, whether with the intent of deceiving the plaintiff, and whether he, believing them 'to be true, purchased the property and thereby sustained damage. The action was to recover damages for deceit, and the rule as to what the plaintiff was required to prove in order to maintain it is well settled. He was bound to prove “ representations, falsity, scienter, deception and injury.” (Arthur v. Griswold, 55 N. Y. 400; Brackett v. Griswold, 112 id. 454; Fairchild v. McMahon, 139 id. 290.) Evidence was given bearing upon each one of these questions and the jury by its verdict found the existence of all of them.

It is urged that even though it be conceded that the representation as to the Carroll rent was false, nevertheless the plaintiff is not entitled to the recovery had by him, inasmuch as he was put upon inquiry when the defendant Mayer refused to sign a statement to the effect'that no concessions or rebates had been made to the tenants of. the building, I do'not think what was said was sufficient to require the plaintiff to investigate the truth of Mayer’s statements ; on the contrary, he had a right to rely upon what he said [295]*295as being true. They met for the purpose of executing the agreement and Mayer was thereupon requested by plaintiff’s attorney to sign a statement to the effect that what he had theretofore said, as well as what was expressed in the leases he then produced as to the rents, was true. He seemingly was indignant that the plaintiff should question the truthfulness of his statements. This lulled the plaintiff into security, so that he trusted him and if he were damaged thereby defendants are responsible. As said by Judge Earl in Albany City Savings Institution v. Burdick (87 N. Y. 40): “ It is certainly not just that one who has perpetrated a fraud should be permitted to say to the party defrauded when he demands relief, that he ought not to have believed or trusted him. Where one sues -another for negligence, his own negligence contributing to the injury will constitute a defense to the action; but where one sues another for a positive, willful wrong or fraud, negligence by which the party injured exposed himself- to the wrong or fraud will not bar relief. If the rule were otherwise, the unwary and confiding, who need the protection of the law the most, would be left a prey to the fraudulent and artful practices of evil-doers.” • (See, also, Wilcox v. American Telephone & Telegraph Co., 176 N. Y. 115.)

It is also urged that the judgment is erroneous inasmuch as an improper measure of damages was adopted at the trial, but an examination of this question fails to disclose any error.

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Related

In re the Estate of Dale
159 Misc. 578 (New York Surrogate's Court, 1936)
In re Merrill
215 A.D. 516 (Appellate Division of the Supreme Court of New York, 1926)
Hallen v. Martin
167 N.W. 314 (South Dakota Supreme Court, 1918)
Ettlinger v. Weil
131 A.D. 784 (Appellate Division of the Supreme Court of New York, 1909)
Greene v. Mercantile Trust Co.
60 Misc. 189 (New York Supreme Court, 1908)
Mills v. Brill
105 A.D. 389 (Appellate Division of the Supreme Court of New York, 1905)

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Bluebook (online)
94 A.D. 291, 87 N.Y.S. 1049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ettlinger-v-weil-nyappdiv-1904.