Herczeg v. Weiss

136 N.E. 714, 304 Ill. 543
CourtIllinois Supreme Court
DecidedOctober 21, 1922
DocketNo. 14309
StatusPublished
Cited by1 cases

This text of 136 N.E. 714 (Herczeg v. Weiss) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Herczeg v. Weiss, 136 N.E. 714, 304 Ill. 543 (Ill. 1922).

Opinion

Mr. Justice Stone

delivered the opinion of the court:

This is a bill to reform a written contract for the sale of real estate so as to conform to the verbal contract relating thereto, and for specific performance of the contract as reformed. The bill charged that appellant was the owner of the real estate involved. A few days prior to the 19th of April, 1919, appellant and appellee entered into an agreement by which appellant sold the property to appellee for $1600, the vendor to build a fence around the property. The purchase price was to be paid in installments, the final installment to be paid by February 23, 1920. It appears from the bill that both the appellant and appellee are Hungarians ; that appellee is unable to read or write the English language and reads and writes the Hungarian language but poorly; that appellant understands the English language as well as the Hungarian; that he was in the real estate business, was a justice of the peace, and assured appellee that he would treat him fairly. The bill charges that appellee relied entirely upon appellant in this transaction and did not attempt to read the contract or have it read to him by anyone other than appellant; that appellant fraudulently and purposely avoided reading certain parts thereof; that 'appellee asked to have a copy of the contract given him on the day it was executed, but that appellant for one -reason or another failed or refused so to do until the 2d day of June, 1920, when he was compelled by an order of the circuit court of Madison county to turn over a copy of the contract to appellee. The contract was written in the Hungarian language and as translated is set out in the bill. It is, in substance, an agreement for the sale of the property in question in Try-City Park, Madison county, for $1600. As translated, the portion appellee alleges was not read to him reads as follows: “with three rooms, without interest, but yet the together constructed and after the payment of repair expenses named, buyer must buy fourth room which is built to it and every construction, beside 1600 dollars.” Following the above quoted language, the contract sets out that the vendee is to pay $400 cash, and in case he sells certain Missouri land will pay the amount derived therefrom on the house and lot purchased, balance to be paid in installments. Appellee alleges in his bill that when appellant read the contract to him he did not read the part therein just quoted. Without that provision the contract was practically as agreed to between them, except as to appellant’s agreement to build a fence around the premises. Appellee filed an amendment to his bill, setting out that appellant, on the date at which the contract of sale was executed, did by fraudulent representation to appellee as to the character of the instrument Secure the signature of appellee and his wife to a judgment note in the sum of $1154; that the note was wholly without consideration, fraudulent and void, and that in signing the same the appellee relied upon appellant’s statement that he was signing a paper in connection with his purchase of the property; that he so believed until May 15, 1920, when he was served with an execution by the sheriff; that he then learned that this paper was a judgment note, and that the execution served on him was an execution on the judgment entered on that note over and above certain credits, showing a balance of $743, with $100 attorney fees. The appellant filed his answer denying all the material charges of the bill. The cause was referred to the master to take proof. The master found that the original parol agreement was that appellee was to have the house and lot for the sum of $1600, but that after making the contract, and after appellee hád gone into possession of the premises, appellant, under an arrangement with appellee, made certain repairs about the premises which were reasonably worth $100, and that said sum should be paid by appellee to appellant. The master also found the contract should be reformed as prayed in the bill and as reformed enforced by a decree for specific performance. The chancellor overruled the exceptions and approved the master’s report. Appellee excepted to the finding of the master that he should pay to the appellant the sum of $100 for the repair's made after he took possession, and has assigned the same as cross-error here.

Evidence was introduced on the hearing before the master tending to show a fiduciary relationship existing between appellant and appellee. This testimony was objected to by the appellant on the ground that the bill did not charge a fiduciary relationship. The bill charged, in substance, that appellee is unable to read or understand the English language; that he understands or writes the Hungarian language poorly; that he had been acquainted with appellant for some time; that appellant was a justice of the peace; that he knew the appellee was ignorant and uneducated and hardly able to read or understand the Hungarian language; that appellee told appellant that he was not familiar with conveyances of real estate or deeds or contracts; that he would have to rely solely on appellant, and that appellant stated to him that he (appellant) being a justice of the peace knew how to draw contracts and that he would treat him fairly and honestly; that he told appellee that the contract would enable him to purchase the property for the sum of $1600, to be paid in installments, and that appellant would erect a fence around the premises. The bill charges that appellee relied on those statements and protestations of honesty and fair dealing in signing the contract, and that appellant knew that he was relying upon his honesty and believing that he would set forth the contract in correct terms. We are of the opinion that these allegations constitute sufficient averments upon which to base testimony relating to a fiduciary relationship.

Fiduciary relations are not confined to the legal relation of attorney and client, guardian and ward, or parent and child, but such relation exists whenever it is proven that confidence is reposed by one and the trust is accepted by another. A fiduciary relationship exists where confidence

is reposed on one side and resulting superiority and influence on the other. Fiduciary relations need not be legal,— they may be moral. If such relations exist, the burden is on the one in whom such confidence has been reposed to show that any contract entered into by the' parties to such a relationship is not against equity and good conscience. (Campbell v. Freeman, 296 Ill. 536; Bordner v. Kelso, 293 id. 175; Mayrand v. Mayrand, 194 id. 45; 2 Pomeroy’s Eq. Jur.—3d ed.—sec. 956.) The evidence on this point tends to show that for some time prior to the making of this deed appellant and appellee were on friendly terms; that appellee frequently visited the office of appellant; that a short time before the making of the contract, April 19, 1919, appellee came to the office of appellant and told him that there was some difficulty between himself and his wife with reference to the handling of the family funds; that appellant went with appellee to the office of A. R.

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Bluebook (online)
136 N.E. 714, 304 Ill. 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herczeg-v-weiss-ill-1922.