Griffiths v. Cretney

126 N.W. 875, 143 Wis. 143, 1910 Wisc. LEXIS 280
Wisconsin Supreme Court·Decided May 24, 1910·Published·Cited by 2 cases

Opinion

SiebeCKER, J.

It is urged that the court erred in retaining jurisdiction of the cause to award plaintiffs damages after determining that a judgment for a rescission of the deeds and transfers of the lands involved could not be awarded as prayed for by the plaintiffs. The appellants’ contentions, embrace two questions: first, Is the case one which the court may retain if rescission could not be awarded, and grant relief by way of damages; secondly, Do the facts and circumstances shown present a case for an award of damages ? As-to the first question, the practice is well established that when a court of equity has obtained jurisdiction in a suit for cancellation of instruments transferring interests in lands, and it is disclosed by facts elicited on the trial that the special relief prayed for has become impracticable and that plaintiffs-[151] are entitled only to the alternative relief of damages, the court may retain the cause to do justice between the parties. This practice was adopted and the rule applied in Hall v. Delaplaine, 5 Wis. 206; Combs v. Scott, 76 Wis. 662, 45 N. W. 532; and Lindsay v. Fricke, 130 Wis. 107, 109 N. W. 945.

It is undisputed that the defendant Jones had title to the lands at the time plaintiffs demanded a reconveyance thereof on account of the alleged fraud. It furthermore appears that Jones thereafter conveyed title to 160 acres of the farm to third parties, and hence no cancellation and rescission could be awarded. It does not, however, appear that plaintiffs knew that the defendants Collins and Cretney had conveyed their interests to the defendant Jones and that Jones had conveyed title to a portion of the land to a third person before the commencement of this action, and therefore the court retained the cause to award plaintiffá damages to compensate them for the losses sustained through the fraud found. The action of the court, under the circumstances of the case, was proper within the rule of the foregoing decisions.

It is contended by the defendants that the trial court erred in finding that they falsely and fraudulently misrepresented the value of the wild lands in Barron and Rusk counties, that such false and fraudulent representations were intentionally made by defendants to deceive the plaintiffs in this respect and with the object and intent to induce plaintiffs to make the exchange of properties as effected in the transaction under investigation, and that the plaintiffs relied thereon and were thereby misled to their daipage in the sums found.

The evidence abundantly establishes the court’s conclusion that William T. Griffiths was addicted to the morphine habit and that his indulgences therein had seriously affected his mind and memory and had very much impaired his capacity and ability for the transaction of business. On this subject [152] the court declares that as to him, “the testimony in this case convinces me, coupled with the observation of the man, that in this business transaction now under consideration he did not have a clear comprehension of the situation.” As to the brother Jobn the court states: “I am satisfied from the testimony in this case and from my observation of the parties that John Griffiths is a man of hardly ordinary business intelligence — a man who has done very little of the business of the Griffiths Bros.”

The facts disclosed on the trial tending to show that plaintiffs supposed they had made no transfer of their farm in the September, 1905, transaction, though it is undisputed they executed a deed which was recorded the next day and apparently with their consent, are cogent and persuasive as circumstances supporting the trial court in his conclusions as to plaintiffs’ mental capacity and their want of ability to comprehend and understand the full import and consequences of this transaction for the disposition of their farm. It also appears that Oollins had for a long time been their adviser in business affairs and in selling and buying land for them, and that they reposed trust and confidence in him as a promoter of their financial interest.. These relations existed at the time of the exchange of properties on September 12, 1905. The acts and conduct of plaintiffs in dealing with defendants on the occasion in question, which was in the main brought about through and by Oollins, must be considered in the light of 'all these existing conditions respecting plaintiffs’ abilities and capacities and their friendly relations to Mr. Oollins. A study and consideration of the evidence in support of the facts embraced in the foregoing statement-leads us to the conclusion that the plaintiffs on the occasion in question relied on the statements of defendants, principally made by Oollins, respecting the properties .embraced in the exchange, the values thereof, the terms and conditions to provide for payment of the moneys coming to them thereon, [153] as well as the loan from them to obtain a discharge of the execution levy on their stock. It is also manifest that their reliance on the truth of all the representations made to them concerning the properties induced them to make the exchange, and that they did not fully comprehend that the execution and-delivery of the deed to their premises, under the accompanying facts and circumstances, operated as a consummation of the transfer of the properties embraced in the exchange and effectually transferred their title and interest in the former.

The appellants advance the argument that the facts and circumstances of the transaction through which the exchange was accomplished fail to show that their conduct in the matter was naturally calculated to deceive and mislead the plaintiffs. If plaintiffs were men of ordinary intelligence and had ordinary business capacities and abilities, this claim would be well founded; but, as above stated, plaintiffs are not such men and had not the ability to deal with the defendants in an adversary character on an equal footing for protecting their rights in the transaction. The situation was one peculiarly favorable to enable the defendants to mislead them by slightly colored false statements and thereby overreach and cheat the plaintiffs. Reading the case from this viewpoint, we are persuaded that the evidence justifies the trial judge’s conclusions to the effect that the plaintiffs relied on the statements and representations of Collins respecting the wild lands in Barron and Rusk counties and were thereby induced to believe they were of the value of $20 per acre, and that they accepted them as of that value in the exchange of properties.

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Griffiths v. Cretney, 126 N.W. 875, 143 Wis. 143, 1910 Wisc. LEXIS 280 (Wis. 1910).

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