Grant v. Maxwell

128 S.E. 803, 160 Ga. 612, 1925 Ga. LEXIS 217
Supreme Court of Georgia·Decided June 24, 1925·No. No. 4854·Published·Cited by 3 cases

Opinion

Beck, P. J.

C. L. Maxwell brought suit against A. M. Grant and Mrs. Cora Grant upon four promissory notes for $875 each, which were given for “part of purchase-money for a tract of land known as Watkins Mill, containing twelve and a half acres, more or less,” in Douglas County, Georgia. These notes were signed by A. M. Grant and Mrs. Cora Tate. Grant and Mrs. Tate after-wards intermarried. The proceedings to collect the notes were begun by attachment, and subsequently a declaration in attachment was filed by. the plaintiff. The defendants filed a plea and answer. They admit the execution of the notes, and that they were given for the property named, but say that they refused to pay the notes or any part thereof for the reason that the consideration has failed. It is averred in the answer that “The said C. L. Maxwell, plaintiff in this case, represented to defendants that he owned a mill on Dog River which was well patronized, and that he had averaged grinding 5600 bushels of corn per year on said mill, when in fact and in truth he has never ground more than about 3200 bushels in any one year. That said Maxwell represented to them that the community was a good, prosperous community, and that the people had freely patronized the mill, and, while it was at the time of the trade in a somewhat run-down condition or out of repair, that he would put the mill in first-class condition at the time it was to be turned over to defendants. That these representations of Maxwell were false and known to him to be false when he made the statements to defendants, as the mill and property was and is worth practically nothing in the condition it was at the time plaintiff delivered possession to defendants. That defendants paid plaintiff 'the sum of $500 at the time of making the contract, on the representations made by him as to the custom grinding which he did, which representa[614] tions were knowingly false.” Defendants allege that the plaintiff failed to comply with his agreement to put the mill in first-class condition, and defendants were compelled to expend the sum of $1500 in endeavoring to put the mill and outhouses in proper condition for use, which required an entire year and up to the time the first note was due, and consequently the defendants were given no opportunity to operate the mill on any kind of a paying-basis. Defendants further say, that “the false representation made by plaintiff as to, the amount of corn that the mill had ground was one that defendants could not know to be untrue, and did not know at the time the trade was made, and that the difference between the amount represented to the defendants [and the true amount] was such a fraud on these defendants that in equity and good conscience it should and does void the contract, and leaves the notes without any kind of valid, legal, or equitable consideration.” Defendants further allege that the fraud perpetrated upon them knowingly by the plaintiff has injured and damaged them in the sum of $2000, and they pray that the contract be rescinded and the notes and bond for title be declared to be null and void; and that defendants have judgment against the plaintiff for the sum of $500 paid in cash and $1500 for material and labor expended in endeavoring to put the mill in a first-class condition.

The jury upon the trial of the case returned a verdict for the plaintiff. The defendants made a motion for a new trial, which being overruled, they excepted.

The court charged the jury in part as follows: “They [the defendants] also claim that they relied upon the representations made by the plaintiff as to the condition of the machinery, that they bought it on these representations, relying on the representations that he made about the condition of the machinery and property. I charge you, gentlemen, on that subject that the law is, on real estate or other property, that they can see if there are defects, if the defects are patent; whether it is real or personal property, if the defects are patent, then they are obliged to see the things that are open and can be easily seen. Where one purchasing land has the privilege of examining it before buying it, [and] instead of doing so voluntarily relies upon the statement of the vendor concerning its character and value, the contract [615] will not be rescinded or set aside, or tbe pnrcbase-price of the land abated, because of the falsity of such statements, unless some fraud or artifice be practiced by the vendor to prevent such examination. That is true although the vendor in buying the land may have acted upon the misrepresentations of the vendor or his agents. That is true, gentlemen; that is the rule.” This charge is excepted to on the ground that the “language of the charge restricted the jury to a purely legal and technical rule where no representations were made, as is shown by the evidence in'this case.” This exception is evidently without merit. The charge plainly deals with the effect of representations made by a vendor pending negotiations that result in a trade, and does not state “a purely legal and technical rule” applicable “where no representations were made.”

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Grant v. Maxwell, 128 S.E. 803, 160 Ga. 612, 1925 Ga. LEXIS 217 (Ga. 1925).

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