James v. Work

24 N.Y.S. 149, 70 Hun 296, 77 N.Y. Sup. Ct. 296, 54 N.Y. St. Rep. 166
New York Supreme Court·Decided June 30, 1893·Published·Cited by 1 cases

Opinions

VAN BRUNT, P. J.

This action was brought to recover damages alleged to have been suffered by the plaintiff from the fraud and deceit of the defendant. The complaint alleges that in the years 1883 and 1884 the firm of Grant & Ward were doing business as bankers and brokers at No. 2 Wall street, in the city of New York, and that between the 15th of February, 1884, and the 6th of May, 1884, the defendant procured from the plaintiff the sum of about |207,800 upon certain dates and in certain amounts in said complaint particularly specified, “by falsely and fraudulently representing to plaintiff as matters of fact known to defendant that the said firm of Grant & Ward were very wealthy, and that each of the members thereof was very wealthy, and that said firm had certain very valuable and profitable contracts with responsible third parties upon which large sums of money were to become due and payable to said firm from time to time during the year 1884, the per[151]*151forman.ee and payment of which said contracts the said firm guarantied to investors therein; and that said firm had, at defendant’s request, taken an interest in said contracts for or on behalf of this plaintiff, upon which there would become due and payable about 8 per cent, upon the cost thereof as profits every SO days during the time said contracts were to run, respectively, together with the sums invested, at the maturity of said contracts; and that, as matter of fact, said guaranty made the investment perfectly safe, because of the wealth and responsibility of said firm, which were ■well lmown to defendant; and that defendant wanted the sums above stated, at or about the times above stated, to pay to said firm for plaintiff for the interests in said contracts, which had been taken by said firm for plaintiff at defendant’s request, as aforesaid.” The complaint then further alleges that the plaintiff did not then know that said statements or representations or any of them were false, but that he believed each and every one to be true, and, relying thereon, was induced thereby to forbear further inquiries, and to let the defendant have the sums above set forth; that said firm of Grant & Ward failed on the 6th of May, 1884, insolvent, and that each member thereof was likewise insolvent; that said statements and representations were false and fraudulent at the time they were made, and were known by the defendant to be false and fraudulent when made, and that, as plaintiff had been informed since the failure of said firm, and verily believed, at the time said statements and representations were made by defendant to plaintiff the said firm and each member thereof were insolvent; that they did not have any contracts, and did not guaranty the performance or payment of any actually existing contracts, but that said alleged contracts were wholly fictitious. And the complaint further alleged “that on the 3d day of March, 1887, the plaintiff agreed to assign to the defendant all his claims against the firm of Grant & Ward, and their assignee and receiver, and against the individual members of said firm, and other persons representing them, for the sum of |30,000, which sum said defendant paid to plaintiff between the 3d day of March and the 5th day of September, 1887, and subsequently, on the 21st day of May, 1888, on defendant’s demand, and in performance of said agreement, this plaintiff executed and delivered to said defendant an assignment in blank of said claims; and since the failure of said firm nothing has been received by this plaintiff on account of the moneys obtained by defendant from plaintiff as aforesaid, except said sum of |30,000.” The defendant, answering, denied the representations, admitted the failure of Grant & Ward, and that in March, April, and May, 1884, they® were insolvent, and that they did not have any of the alleged contracts described in the complaint. The answer further admitted “that on or about the 3d day of March, 1887, the plaintiff agreed to assign his claims against the firm of Grant & Ward and their assignee and receiver, and against the individual members of said firm and other persons, and that this defendant paid, or caused to be paid, to the said plaintiff, the sum of thirty thousand dollars,” but denied the agree-[152]*152merit set out in • the complaint, or that said sum of $30,000 paid by the defendant was paid for the consideration set, out. in .the complaint. It admitted the execution by the plaintiff of an assignment in blank of certain claims of. the plaintiff, as- ; alleged in the complaint, but' denied that said agreement was performed by the execution of said assignment, and denied that the sum of $30,000 was paid to or received by the plaintiff on account of any money received by the defendant from the plaintiff as alleged in the complaint or otherwise. And for a. second and complete defense to said complaint defendant alleged'that on the “3d day of March, 1887, the plaintiff herein entered into an agreement in writing with the defendant, whereby, in consideration of the sum of thirty thousand dollars, agreed to be paid by this defendant as therein set forth, the plaintiff agreed with this defendant to finally adjust, settle, release, and transfer all the plaintiff’s claims of every natufe and character arising out of or connected with the several transactions of the firm of Grant & Ward, including all transactions had with this defendant, and all other persons whomsoever in any manner connected therewith; that the said consideration of thirty thousand dollars agreed to be paid by this defendant was thereafter fully paid- by him and received by the plaintiff.” The plaintiff having giveri evidence tending to support his complaint, and the defendant, being heard in respect to the defenses set up in his answer, the case was submitted to the jury, and they rendered a verdict in favor of the plaintiff for $63,350; and, a motion having been made for a new trial, from the judgment thereupon entered, and from the order denying such motion for a new trial, this appeal is takén.

In the disposition of the questions which have been raised upon this appeal it will not be necessary to rehearse in detail the evi- . dence in respect to the extraordinary speculation which the case discloses the parties in this action to have been engaged in; the promise of profits fabulous in amount, and manifestly excessively beyond those which might be expected from business transactions, being apparently accepted by the plaintiff without the slightest investigation or question. With this feature of the case, however, this court, perhaps, has nothing to do, in view of the fact that the jury seem to have been satisfied of the gullibility of the plain- • tiff, and they were the judges of that fact.

One of the points which seems to be urged against this verdict upon the part of the appellant is its smallness, and that, therefore, a new trial should be granted; but it seems to be a sufficient answer to this argument to say that no motion in the court below was made upon this ground, and that the only motion for a new trial because of the amount of the verdict was upon the ground that the verdict was excessive, and not that it was insufficient, tío such motion having "been made in the court below, this court cannot consider the question as to the amount of the verdict; except, perhaps, so far as it may be pertinent upon the question as to whether the jury were misled by anything that occurred upon the trial, or that such verdict was against the weight of evidence, ’ and the defendant has been injured thereby.

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James v. Work, 24 N.Y.S. 149, 70 Hun 296, 77 N.Y. Sup. Ct. 296, 54 N.Y. St. Rep. 166 (N.Y. Super. Ct. 1893).

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