Hunter v. McLaughlin

43 Ind. 38
CourtIndiana Supreme Court
DecidedMay 15, 1873
StatusPublished
Cited by14 cases

This text of 43 Ind. 38 (Hunter v. McLaughlin) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunter v. McLaughlin, 43 Ind. 38 (Ind. 1873).

Opinion

Downey, J.

The appellant Hunter sued the appellee on two promissory notes, made by the appellee, payable to the appellant Lugenbell, in a bank, and indorsed by him to Hunter, and also to foreclose a mortgage executed by the appellee to Lugenbell to secure the payment of said notes. The notes were dated the 13th day of November, 1866; one of them matured in six and the other in twelve months after date. There was a paragraph of the complaint on each of the notes. A payment’of six hundred and sixty-five dollars was made on the note first maturing, on the 13th day of February, 1867, by the appellee to Hunter, as alleged in the complaint.

The answer was in several paragraphs, but only the first, second, third, and sixth are in question.

[39]*391. The first paragraph alleges that the notes were given without any consideration whatever, and that that fact was well known to the plaintiff when he procured the same to be assigned to himself.

2. The second alleges that the notes were given for the right to a certain pretended patent ditching machine, “ Peter Lugenbell’s Improved Rotary Ditching Machine,” in and for certain territory in the state of Illinois,- and for no other consideration whatever; that at the time of said sale to him of said pretended ditching machine by the said Lugenbell and the execution of the notes aforesaid, he, the said Lugenbell, claimed to have procured a patent therefor, and exhibited to him his letters patent, and a model of said machine, and that it was claimed by said Lugenbell for his said machine, and represented by his said letters patent and the model thereof by him constructed and exhibited as aforesaid, that said machine, when constructed according to said model and operated, would produce a certain useful result, to wit, that it would cut a ditch for draining purposes to any desired depth, by excavating the earth and carrying the excavated earth up and depositing it outside the ditch, and that said machine, in the use of the means in said model and letters patent specified without any addition to or subtraction therefrom, would produce the result above described ; that the defendant having no means by practical operation to ascertain whether a machine when so constructed would produce the result aforesaid, and relying upon the representations of said Lugenbell by himself and in his said model and letters patent, purchased the right to said-machine for the territory aforesaid, and gave said notes therefor; that afterward, when said machine was constructed according to said model and letters patent, it did not produce said useful result; but, on the contrary, the defendant avers that when said machine was constructed in all respects agreeable and in conformity to said model and specifications in said letters patent, and the same was fully and fairly tested, it utterly failed to produce the result, and [40]*40was and is of no value whatever, and therefore said pretended patent is utterly void; all of which was well known .to the plaintiff when he procured the assignment of said notes.

3. The third paragraph, which is in the form of a cross complaint, and which is filed against Lugenbell as well as Hunter, alleges that Lugenbell was the owner of said invention and claimed 'to have a patent therefor, and knowing that it was of no practical utility, and before testing its utility by actual experiment, to impose upon the defendant and others his pretended improvement, constructed a small model, not intended for practical use, but made to sell, and exhibited this instead of a machine; that this model was well calculated to deceive men of ordinary experience who had not closely studied the principle with a view to its application to the work proposed to be performed by it; that Lugenbell, well knowing that the defendant had no experience in such things, that the plaintiff Hunter was the close neighbor of defendant, that the relations of defendant and said Hunter were of the most intimate and confidential nature, and that Hunter had considerable influence over defendant, that defendant had great confidence in the judgment and integrity of said Hunter, and designing to defraud and cheat the defendant by imposing his pretended improved patent upon him, conspired and confederated with said Hunter, who also well knew the truth of all said facts, and procured said Hunter by promises of great rewards as hereinafter named, to use his influence in procuring the defendant to purchase a right in his pretended patent to the territory hereinafter named; and in order more effectually to carry out their fraudulent design, said Hunter and Lugenbell conspired together and agreed that each one should have an interest in the sales made to the defendant; and having thus conspired together, and in order to gain the entire confidence of the defendant and make him believe that said pretended improvement was valuable and useful, and would sell for large profits, the said Hunter represented to the defendant that he had entire con[41]*41fidence in the patent; that it was the best patent in the world, and that they could soon make a fortune out of it, and that he would enter into partnership with the defendant in buying territory, concealing from the defendant the, combination between him and said Lugenbell, who was his co-conspirator in the fraud, and by his false pretences, representations, and pursuasions induced the defendant to go in with him in buying the right to said pretended improvement for the states of Iowa and Michigan, at the enormous sum of two thousand dollars for each state, and then proposed to defendant that he, defendant, might have his choice of states, and that they would each give his own note to Lugenbell for two thousand dollars, and have the right to said pretended improvement assigned to them separately. It is then alleged that the defendant relying, etc, chose the state of Michigan, gave two notes of one thousand dollars each, and received an assignment for said improvement in said state; that Lugenbell is still the holder of one of said notes, and of a note for two hundred and twenty dollars given to him in lieu of the other, and has instituted suit thereon in this court which is now pending; that said Hunter designing to further cheat and defraud the defendant continued to exaggerate and portray to the defendant the value and utility of said pretended improvement upon every occasion when they met, and seeking every opportunity to excite the defendant’s feelings and influence his judgment upon the subject, and pretended that he was very anxious to buy more territory, and having thus secured the defendant’s entire confidence, and knowing that the defendant was relyingsolely on his judgment, said Hunter, about two weeks after the first trade came to the defendant and represented that the state of Illinois •was the best state in the north-west in which to sell said pretended improvement; that it was worth twelve thousand dollars, and he would join with the defendant in paying said sum for said state, and falsely pretended that said Lugenbell would not sell to him (Hunter), and procured the defendant to go to Lugenbell and see what he could buy the state for. [42]*42The defendant, not mistrusting the falsehood and deception of said parties, called upon Lugenbell to know what he would take for the state of Illinois, and was answered that he would not part with all the said state for any sum, but might be induced to part with one-half of said state for six thousand dollars.

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Bluebook (online)
43 Ind. 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunter-v-mclaughlin-ind-1873.