Farwell v. Hanchett

19 Ill. App. 620, 1886 Ill. App. LEXIS 464
CourtAppellate Court of Illinois
DecidedJune 16, 1886
StatusPublished

This text of 19 Ill. App. 620 (Farwell v. Hanchett) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farwell v. Hanchett, 19 Ill. App. 620, 1886 Ill. App. LEXIS 464 (Ill. Ct. App. 1886).

Opinion

Moran, J.

This was an action of replevin brought by appellants against appellees to recover possession of certain dry goods, which it was claimed by appellants were purchased by Simon Heller from John V. Farwell & Co., by means of false representations as to his financial standing and ability, and xvhen he was insolvent and knew it, and that he made the purchases intending not to pay for the goods. To the declaration, which is in the usual form in replevin, defendants jointly pleaded non cepit, non detinet, property in Simon Heller, property in Abraham Heller, and as to Hanchett, the sheriff, a separate plea of justification under a certain execution against Simon Heller, in favor of Abraham Heller. On these pleas issue was properly joined, and the case was tried before a jury.

There was introduced in evidence a writing signed by Simon Heller as follows:

“ Chicago, Ill., April 1, 1882.
I, Simon Heller, of 167 Blue I. Ave., County of-, State ---, for the purpose of obtaining credit with John Y. Farxvell & Co., of Chicago, Ills., for goods which I may noxv or hereafter purchase of them, do make the following statement and representations of my present true financial circumstances, wealth and mercantile respectability, which said representations shall be the basis of my credit with John V. Farwell & Oo. during the period of five years from this date, agreeing to immediately notify them of any material change in or of my business matters during the period above mentioned.”

There follows a statement of assets and liabilities, showing Heller to be worth about ten thousand dollars above his liabilities.

Heller continued to buy goods from Farwell & Co. from the date of this statement until his failure in December, 1884, at which time he owed the firm something over four thousand ■ dollars.

December 1, 1884, Heller gave Farwell & Co. his note for $550, to apply on what was due from him to them. The goods sought to be replevied were purchased at different times during the year 1884, and there was much controversy .on the trial as to whether the goods taken on the writ were goods purchased from the Farwells. There was also a conflict in the evidence as to whether Heller made to the firm any statements or representations as to his financial condition subsequent to that made April 4, 1882, and evidence was in troduced by defendants tending to show that Farwell & Co. had knowledge from other sources, from which the change in

Heller’s condition during the two years could well be inferred. There was also a conflict as to whether the original statement when made, was true or false. Before commencing the action, plaintiffs made a demand for the goods, which were then in the possession of the sheriff, upon the chief deputy in the sheriff’s office, but no offer was made to surrender Heller’s note for $550, held by Farwell & Co., till upon the trial of the case. The court gave all plaintiffs’ instructions as asked, and gave on behalf of defendants the two following, of which appellants complain.

1. “ The jury are instructed that the fraud which will vitiate a contract which is made by false representations must be a representation of a past or present state of facts, and not of an intention for the future. The party making the representations must know it to be false and he must use it as a means to deceive. The complaining party must be ignorant of the facts, and believe the representations to be true. The party making the representation must intend it to .be acted on and the party complaining must have acted upon it.”

2. “ The jury are instructed that before the plaintiffs can recover in this case they must prove that they demanded the goods in controversy of Simon Heller, or of some one Avho, at the time, had them in his possession; and unless such .proof is made the plaintiff can not recover in this case.”

As to the first of the above instructions, it is insisted that it is in conflict Avitli one given on behalf of plaintiffs. We are inclined to the opinion that there is, in fact, no conflict between the instructions, but if a conflict can be found, in view of the written statement and the evidence in this case, Ave think defendants’ instruction states the law with sufficient accuracy, and if either is subject to adverse criticism, it is the instruction given at plaintiffs’ request. Defendants’ instruction is probably obnoxious to the objections pointed out in McBean v. Fox, 1 Bradwell, 177, but in this case the error is harmless.

The instruction on demand was not, in our opinion, warranted. If the plaintiffs had properly rescinded the sale of the goods by tendering to Heller, before commencing their action, his note, a technical demand for the goods would not be necessary.

Where goods are obtained by fraud practiced on the vend- or and the fraudulent contract is rescinded, the fraudulent vendee is not considered as a purchaser of the goods, but as a person avIio has tortiously gotten possession of them. Kellogg v. Turpie, 93 Ill. 266. That is, the original taking is treated as tortions, and in such case, where the goods are sold on credit and the vendor has not obtained the vendee’s note or money or other property in payment or exchange for the goods, so that there is nothing to be returned by the vendor to the Arendee, in order to place the vendee in statu quo, replevin for the goods may be maintained without a previous demand, where the goods remain in the possession of the fraudulent vendee, or are taken by an officer under an execution against him, or are in the hands of a purchaser from such fraudulent vendee, who was privy to the fraud. Acker v. Campbell, 23 Wend. 372; Bussing v. Rice, 2 Cushing, 48; Butters v. Haughwout et al., 42 Ill. 18; Hardy v. Keeler, 56 Ill. 152; Bruner v. Dyball, 42 Ill. 34; Goldschmidt et al. v. Berry, for use, etc., 18 Bradwell, 276.

In case, however, the vendor has received the notes of the fraudulent vendee, then, before he can rescind the contract of sale and reinvest himself with the title to and right of possession of the goods, the vendor must return or offer to return the consideration, whatever it may be, received from the fraudulent purchaser. In such case a formal demand for the goods will not rescind the contract, and if there is a proper rescission before replevin brought, no demand is necessary in order to entitle the plaintiff to maintain his action. An offer to return the consideration and a request for rescission, however informal, is sufficient, and no demand for the goods need be made. Parish v. Thurston, 87 Ind. 437. Some misapprehension as to this rule has arisen from the language used in the brief opinion of Mr. Justice Dickey, in Moriarty v. Stofferan, 89 Ill. 528. There the vendor had received the note of the vendee, from whom he endeavored to replevy the property sold without offering, before the action was commenced or on the trial thereof, to return the note. He, of course, was not entitled to the possession of the property at the time he commenced his action. The court said: “ If his allegation be true, he undoubtedly had a right to rescind the contract by offering to return the note. He, however, was not in condition to bring his action until he had offered to return the note and demanded the property.”

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Bluebook (online)
19 Ill. App. 620, 1886 Ill. App. LEXIS 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farwell-v-hanchett-illappct-1886.