Fitzgerald v. McDonald

255 P. 989, 81 Colo. 413, 1927 Colo. LEXIS 368
CourtSupreme Court of Colorado
DecidedMay 2, 1927
DocketNo. 11,814.
StatusPublished
Cited by4 cases

This text of 255 P. 989 (Fitzgerald v. McDonald) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitzgerald v. McDonald, 255 P. 989, 81 Colo. 413, 1927 Colo. LEXIS 368 (Colo. 1927).

Opinion

Mr. Justice Sheafor

delivered the opinion of the court.

Defendant in error brought suit against plaintiff in error in the district court, and the parties will be referred to here as there. The action was to recover damages for false and fraudulent representations alleged to have been made by defendant to plaintiff. Trial to the court' without a jury, judgment for plaintiff for $100, and for the return to plaintiff of a certain promissory note and chattel mortgage. Defendant prosecutes this writ of error and applies for supersedeas.

As defendant’s principal contention is that there is a material variance between the allegations of the complaint, the evidence and the findings of the court, it will be necessary to briefly summarize them.

The third and final amended complaint alleges in substance, so far as material, that one Trevett was on or about the 19th day of December, 1922, the owner of a certain promissory note for the sum of $2,280, executed by one Pierce and his wife, and secured by trust deed; that on that date "Trevett was indebted to the Farmers State & Savings Bank in the sum of $625; that prior to that date Trevett had pledged the Pierce note to the bank to secure the $625; that the note and trust deed, and the $625 Trevett note, were in the hands of defendant, who was then acting as special deputy bank commis.sioner; that on that date plaintiff purchased the Pierce *415 note from Trevett; that at that time the total indebtedness of Trevett to the bank was $625; that about that date plaintiff undertook to satisfy the pledge in order to obtain possession of the Pierce note; that defendant, who was then in charge of the bank, “in order to cheat, wrong and defraud plaintiff * * * represented to the plaintiff that the note had been transferred to some other person and was about to-be retransferred; that in order for the plaintiff to secure and obtain the pledge it would be necessary for the plaintiff to transfer a certain chattel mortgage and note executed by C. C. Froman to George McDonald in the sum of $339, and in addition thereto, to pay the sum of $625 in cash and a further sum of $100 in cash”; that the value of the Froman note was $350; that the value of the Froman note and the $100 was charged by defendant as a bonus; that the plaintiff delivered the Froman note and chattel mortgage and paid the $100 to defendant; “that after the transaction was closed, the money paid, the pledge redeemed, the chattel mortgage and $100 bonus turned over according to the agreement and demand of said L. E. Fitzgerald, this plaintiff learned that the representations made by the defendant, L. E. Fitzgerald, were false, and that by reason of the false and fraudulent representations made by the said L. E. Fitzgerald, plaintiff had been damaged to the extent of $450”; that plaintiff did deliver the Froman note and mortgage, and paid the $100 to defendant believing defendant’s statements, and representations to be true, and relying thereon; that thereafter the plaintiff discovered that the representations so made by defendant were false; that the Pierce note and trust deed had not been sold and transferred to any other person, but that defendant had the same in his own possession; that defendant did not apply the Froman note and mortgage and the $100 to the use and benefit of the bank, but converted the same to his own use. The complaint contained all other essential allegations.

*416 As to the evidence: Defendant, called for cross examination under the statute, testified that he had the Pierce note and mortgage in his possession personally at the time alleged, and not as special deputy bank commissioner ; that it had been turned over to him six or eight months prior to that time by a representative of the Central Savings Bank & Trust Company of Denver; that the Pierce note and mortgage were collateral for the Trevett note for $625 which was owed to the Central Savings Bank; that defendant had the Trevett note for collection from that bank; that he received from plaintiff a check for $625, a check for $100, and the Froman note and chattel mortgage; that he received the check for $100 as part of the consideration for the Pierce note, and that it went to him and not to the state bank commissioner, nor to the Central Savings Bank; that he kept as his own, and still had, the Froman note and chattel mortgage; that the $625 went into the state bank commissioner’s funds. There was evidence tending to show that the Pierce note was of the value of $2,280.

Plaintiff testified that he had made a deal with Trevett for the Pierce note; that he gave him a check for $625 and told him to go and get the Pierce note from defendant; that Trevett returned and said he could not get it; that defendant refused to deliver it to him and said he had sold it. Then plaintiff further testified:

“So then I went to see Mr. Fitzgerald, and he refused to turn me this paper over. He said if I hadn’t made this deal he was going to deed some land over by Stone-ham * * * and he was going to make quite a little money out of it * * * so I had time until about the 27th day of December. I came back and went over and seen Mr. Fitzgerald, and he said that he wouldn’t turn this over unless I — he asked me what I would give him for it, to turn it back to me. I told him that I bought this and it was mine, and I wanted it, and I told him I had a note of Charley Froman for $329 and some accrued interest secured on some wheat, and if he would give me *417 $200 in money I would turn him over this note. No, he said, you are making $500; if you give me this note and $150 in money I will turn you back the security. So being Trevett had my money, and had deed to my land, I knew I was hooked. So I gave him the note and $100 check and immediately he opened the desk and give me the paper.”
“Q. Did you believe at the time that he had disposed of the property to someone else? A. No, I didn’t.
“Q. Why did you give him the additional money for this note above what the Trevett note called for? A. Well, I had a quarter section of land in this and had $50 in money that I had paid Trevett, and there was no other way I could save myself only to pay this additional as he requested.”

Plaintiff further testified that about the 19th or 20th of December he went to Fitzgerald’s office and told him he had purchased the paper.

“Q. What did he say? A. He told me it was too late. ”
“Q. What else did he say? A. He said he had already disposed of it to a party in New Raymer.”

He further testified that defendant told bim he had sent it to New Raymer. As to other matters, the evidence was conflicting. At the conclusion of all the testimony defendant asked for an opportunity to present his argument, when the court remarked:

“You couldn’t convince me in a thousand years. Here is one of the most bare, clear-faced, unadulterated frauds that I have seen or met up with in a long, long time. This property was the property of that bank; and even if this man had not been the bank commissioner, the transaction itself showed a collusion between this defendant and the Central Savings Bank & Trust Company in Denver, who held this collateral; but moreover, he was a bank commissioner, and he was saddled with the trust.

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Bluebook (online)
255 P. 989, 81 Colo. 413, 1927 Colo. LEXIS 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitzgerald-v-mcdonald-colo-1927.