Kerwin v. Friedman

105 S.W. 1102, 127 Mo. App. 519, 1907 Mo. App. LEXIS 529
Missouri Court of Appeals·Decided December 3, 1907·Published·Cited by 6 cases

Opinion

GOODE, J.

On May 1, 1905, plaintiffs owned three lots in the city of East St. Louis, Illinois, on which there was an incumbrance of $650 and accrued interest. The defendant at that time claimed to own a farm in Scott county, Tennessee. A trade was arranged between the parties by which the plaintiffs acquired defendant’s farm and defendant acquired plaintiffs’ East St. Louis lots, subject to the mortgage on them. At the same time the defendant lent plaintiffs $250 and took a mortgage back on the Tennessee land to secure the debt. At the time of the trade defendant had in his possession a deed to the Tennessee land dated December 16, 1902, executed by one Frank P. George, as grantor, but containing no grantee, the place for the insertion of such name having been left blank. Defendant wanted to convey the land by inserting plaintiffs’ names in the George deed, representing that thereby the title would be conveyed. It turned out that neither George nor the defendant had any title to the land in Tennessee and that George’s grantor had had no title. In other words, the title was worthless. When this fact was ascertained, plaintiffs instituted- the present action to recover damages, alleging they were induced to make the trade by the false representation of defendant that he held and could make a good title to the Tennessee land, and that this representation was made by defendant fraudulently, he knowing at the time that it [521] was false. In defense, besides a general denial and certain admissions, tbe defendant pleaded a counterclaim based on the loan be bad made plaintiffs at tbe time of tbe trade. This loan was evidenced by a negotiable promissory note of date May 2, 1905, payable to Samuel Lowenstein, two years after date, with interest at tbe rate of six per cent per annum and four interest notes. Lowenstein acted as agent for tbe defendant and the notes really belonged to tbe latter. Tbe evidence tended to establish the averment of a false representation fraudulently made by defendant and relied on by plaintiffs, though there was evidence in favor of bis innocence. Plaintiffs recovered a verdict of $1,850 and defendant a verdict of $280 on bis counterclaim. Thereupon judgment was entered in favor of tbe plaintiffs for the difference between ■ the two sums, to-wit, $1,570. One point made for a. reversal of the judgment is that tbe testimony shows that what defendant said about tbe condition of tbe title to the land was a mere expression of opinion and not a statement of fact. This assignment is based on testimony that defendant said if the title was not good he would make it good. His counsel contends such a. statement was no more than an expression of opinion that tbe title was good in George. But there was testimony that defendant said positively tbe title was good, and again, that it was all right. Plaintiffs inquired about the condition of tbe title before they would enter into tbe trade and were assured by tbe defendant tbe title was good. It is true defendant did say in tbe same conversation that if it was not be would make it good; but tbe evidence tends to sIioav further that plaintiffs were inquiring about the title in order to decide whether they would trade or not, and that they traded in reliance on tbe representation of defendant that they would get a good title by tbe delivery of the George deed Avith their names inserted as grantees. Mr. Kerwin swore Friedman [522] said the title was all right and that he (Kerwin) had no knowledge of the title or the land except what he learned from Friedman and that he relied on the latter’s squareness and honesty as a man of business. In order to give a verdict for plaintiff the jury were required by the instructions to find the representation regarding the title was false and known by the defendant to be; or that it was intentionally, recklessly and carelessly made by defendant with no reasonable grounds to believe it was true. No complaint is made of the instructions. We have been cited to no authorities which would treat such a statement as defendant made as a mere expression of opinion, instead of a representation regarding the fact. It was a positive assurance that the title was good; not that defendant thought it was good. A misrepresentation about the title to land, knowingly made and intended to be relied on by one contemplating a purchase, and actually relied on by such purchaser from lack of opportunity to examine for himself, or from his confidence in the seller, is actionable. [Holland v. Henderson, 38 Mo. 55; Smith v. Frink, 57 Mo. 239; Caldwell v. Henry, 76 Mo. 254.]

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Kerwin v. Friedman, 105 S.W. 1102, 127 Mo. App. 519, 1907 Mo. App. LEXIS 529 (Mo. Ct. App. 1907).

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