Gollon v. Jackson Milling Co.

273 N.W. 59, 224 Wis. 618, 110 A.L.R. 1173, 1937 Wisc. LEXIS 156
CourtWisconsin Supreme Court
DecidedApril 27, 1937
StatusPublished
Cited by4 cases

This text of 273 N.W. 59 (Gollon v. Jackson Milling Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gollon v. Jackson Milling Co., 273 N.W. 59, 224 Wis. 618, 110 A.L.R. 1173, 1937 Wisc. LEXIS 156 (Wis. 1937).

Opinion

Fritz, J.

The question on this appeal is whether plaintiff’s action for reformation of a deed delivered by him in 1917 to the Jackson Milling Company was barred under the statute of limitations within six years after the perpetration of the fraud alleged by plaintiff as the basis for his right to reformation. The fraud charged was that by their misrepresentations the grantees’ agents obtained from the plaintiff and his wife, on October 29, 1917, a deed granting the right of unlimited flowage of his land instead of merely the limited right which he intended and believed that he was granting. He alleged that the $1,700, which he received for the deed, represented fair consideration for the rights -which he in[620]*620tended to grant, but that the value of the full flowage rights was in excess of $3,700; that the defendants asserted no further rights under the deed than their agents had represented it to convey, until, in 1930, they constructed and operated a dam which backed up water three and one-half feet above the height carried for ten years prior thereto; and that until then he had not learned of the effect of the deed nor of the fraud which had been perpetrated upon him.

The learned circuit judge sustained the defendants' demurrer to the complaint on the ground that, “immediately upon the consummation of the alleged fraud in the year 1917, plaintiff had a right of action for damages occasioned by such fraud and that this right of action became barred at the expiration of six years, under sec. 330.19, Stats., formerly sec. 4222, Stats., or under sec. 330.18 (3), Stats., and that the barring of this cause of action barred all rights of action based upon such right.” As the court said in that connection, “if prior to the amendment of sec. 330.19 (7) in 1929 the plaintiff’s right of action, arising out of the alleged fraud upon him, gave the right to an immediate action for damages, as well as a right to invoke the aid of a court of equity to set aside or reform the deed, the right of action for damages might have been prosecuted and such right of action would be barred by the statute whether the fraud was discovered immediately or at some later time. It is well settled in Wisconsin that if a fraud gives the right to the aggrieved party to either sue for damages, or bring an action in equity, based upon the same facts, and the right to sue for damages becomes barred by the six-year statute of limitations, that also bars the right of action in equity at the same time; and that the action for damages becomes barred at the end of six years notwithstanding the facts constituting the fraud are not discovered until after that time.” For the reasons stated in Thom v. Sensenbrenner, 211 Wis. 208, 247 N. W. 870, if the plaintiff had a right of action in October, 1917, to re[621]*621cover damages for the fraud then perpetrated on him, so that his cause of action therefor accrued on that day, then all rights of action based on that fraud became barred by reason of secs. 4219 and 4222, Stats. 1917-1923, upon the expiration of six years after October, 1917; and the amendment of sub. (7) of sec. 330.19, Stats., by ch. 24, Laws of 1929, is not applicable to any of those rights of action. Consequently, all possible causes of action, whether in equity or at law, based on the alleged fraud became barred six years after October 29, 1917, if the plaintiff was then entitled to bring an action at ,lqw for deceit for damage to him by reason of the grantee then fraudulently acquiring under the deed more valuable flowage rights than the plaintiff intended to grant in consideration of but $1,700.

Plaintiff contends that this action is not barred because he had no right of action for deceit until he affirmed the contract or grant embodied in the deed, and he cannot be deemed to have done that until he discovered the fraud; and he also contends that no such cause of action existed until the defendants flooded all his lands in 1930, because the damages resulting from the fraud had not come into existence and it was impracticable to arrive at the amount thereof, which might result from the fraud.

Although it is true that damages are an essential element to a cause of action for fraud (Foster v. Taggart, 54 Wis. 391, 11 N. W. 793; Barber v. Kilbourn, 16 Wis. *485; Doherty v. Wing, 140 Wis. 227, 122 N. W. 716), that rule is not decisive of the questions raised herein. In Jacobs v. Frederick, 81 Wis. 254, 255, 51 N. W. 320, and Stahl v. Broeckert, 170 Wis. 627, 629, 176 N. W. 66, this court applied the general rule that “where the statutes do not otherwise provide, a right of action at law to recover damages for a fraud accrues and the statute begins to run when the fraud is successfully consummated, not when it is discovered. . . .” 25 Cyc. 1181; 37 C. J. p. 935, § 303. In Jacobs v. Frederick, [622]*622supra, sales of stock in 1883 were induced by false and fraudulent representations, the falsity of which was not discovered by plaintiff until 1887. In discussing when the right of action accrued, the court said:

“The simple question, then, is whether it accrued at the time the fraud was successfully perpetrated in October, 1883, or when it was discovered in 1887. It accrued when the right to commence it was complete. That right was complete as soon as the fraud was perpetrated and the money paid.”

In Stahl v. Broeckert, supra, the plaintiff, when executing a note and mortgage on the purchase of property, was fraudulently induced by one of the defendants to sign another note which she had not agreed to give. Although she had no knowledge of the fraud and no actual loss as the result thereof until four years after the perpetration thereof when she was compelled to pay the note to an innocent holder, this court said, in an action for deceit brought within six years after she made that payment:

“Such being its nature, the cause of action accrued when the fraud was perpetrated and not when it was discovered by plaintiff, and the statute of limitations had run thereon long before this action was commenced.”

In the case at bar the plaintiff, in connection with contending that no right of action for deceit existed upon the perpetration of the fraud by obtaining his deed in 1917, claims that he sustained no damage until the defendants flooded his land in 1930 in excess of the grant which he intended to make by his deed; and that his sole remedy if he had affirmed the contract would have been by condemnation, which he could not have maintained until there was a taking of his land in excess of the grant intended by him. Those contentions cannot be upheld because the sustaining of some damage by the plaintiff in consequence of the fraud was not dependent upon [623]*623or delayed until his land was actually flooded in excess of his intended grant so as to entitle him to recover therefor in condemnation proceedings, and thus constitute the latter his sole remedy. If the unlimited grant in the deed was obtained by fraud in 1917, he was then subjected to damage because the grantee thereby and then fraudulently acquired from him greater rights in his land than he intended to convey and was being compensated for. Immediately upon the delivery of that deed, there vested thereunder in the grantee the right to unlimited flowage of the land until there was some subsequent limitation of that grant by either reformation of the deed or some other equally effective limitation of the grant.

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273 N.W. 59, 224 Wis. 618, 110 A.L.R. 1173, 1937 Wisc. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gollon-v-jackson-milling-co-wis-1937.