King v. Fitch

2 Abb. Ct. App. 508, 1 Keyes 432
CourtNew York Court of Appeals
DecidedDecember 15, 1864
StatusPublished
Cited by4 cases

This text of 2 Abb. Ct. App. 508 (King v. Fitch) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
King v. Fitch, 2 Abb. Ct. App. 508, 1 Keyes 432 (N.Y. 1864).

Opinion

Ingraham, J.

[After stating the facts.]—The objection to the sufficiency of the complaint was not well taken. The offense consisted in fraudulently obtaining the property by Kelson. When that was made out, the title remained in their vendors, and it was not necessary for plaintiff to show any wrongful act on the part of the defendant in receiving the property. When the plaintiff showed fraud in the purchase, and a demand of the property from the person in possession, he made out a 'prima facie case to entitle him to recover. It is not necessary to inquire whether, if the defendant had been a holder for value without notice, he would have been protected, because if he was such a holder the onus of proving that fact [514]*514was on him, and because in this case it appeared that the defendant’s claim was merely as assignee under a voluntary assignment for the benefit of creditors, and that nothing was paid by the defendant therefor.

Nor was it necessary to aver that the plaintiff had tendered back what he had received upon the purchase. The facts proved showed there had never been a valid contract. The whole cause of action rested upon that issue. The subsequent matters which were necessary to be shown on the trial, in regard to the return of what had been received, did not go to make out a cause of action, but to relieve the plaintiff from any supposed affirmance of the sale after he obtained knowledge of the fraud. Such evidence is rather to rebut the presumption which the defendant might claim to exist from the acts of the plaintiff as affirming the contract.

The cause of action is that the title was in the plaintiff’s assignors and that no title ever passed to Nelson. Whether the plaintiff had in time disaffirmed the contract, or whether he had done everything necessary to prevent the defendant from claiming that he had waived his right to resume possession of the property, was matter of evidence to be furnished, and which would go to make out the cause of action or defense, but not necessarily matter to be averred in the complaint.

The declarations of Nelson as to his solvency made at the time of purchases prior to 1855 were admitted in evidence against the defendant’s objections. These declarations were the inducements to the first sales, and they undoubtedly remained in the remembrance of parties afterward. Nothing had been done by Nelson to correct them, but on the contrary, when the firm of King & Sons declined making further sales, similar representations were again repeated. I see no ground of objection to the testimony. The evidence shows, from the commencement, the intention of impressing upon the minds of the vendors that Nelson owed nobody but them, and that there was no danger in giving credit to him.

The inquiry is whether the purchaser made any false statements by which tke vendor was deceived and the property obtained from him. Such fraud may be practised by a continuous course of misrepresentation during a series of transactions [515]*515and still continued notwithstanding the first purchases were paid for. In fact such payment may he a part of a scheme to gain the confidence of the vendor, and induce him to make further sales and to give larger credit. Zabriskie v. Smith, 13 N. Y. 322, 332.

The question was put to plaintiff whether he would have trusted Nelson but for these representations. The objection was not to the form of the question as leading, but to the permitting the vendor to state whether he gave credit on them. This could only be known to himself, and it was a material ingredient in the plaintiff's case. If the vendor may not say whether he gave credit on the strength of the representations, or whether he would have trusted the purchaser without them, it becomes a matter for the jury to guess at without the only positive evidence there can be on the subject. I know it is subject to the criticism that it is the conclusion of a witness, but not justly. The conclusions of a witness are the results of his judgment upon various facts coming to his knowledge, and are properly excluded because the jury can form similar conclusions themselves; but this inquiry is as to the cause of action on the part of the vendor in making the sale, and the inducements which led to it. It is not what he thinks of the acts of others, but what he did himself in consequence of these acts.

Some of the purchases were made by the son Robert in the absence of the father. The representations made by him were offered in evidence and objected to. The whole price to be paid for these purchases had not been paid, and the goods which were the subject of purchase formed part of the property claimed and demanded by the plaintiff.

Robert Nelson must be treated as the agent of the purchaser while acting for him. His representations made at the time of the purchase, if false, would vitiate the contract the same as if made by the purchaser. For this reason the evidence was admissible. It was not necessary to aver in the complaint that the representations were made by the agent and not the principal. That was only a matter of evidence. Indeed, as before stated, no such averments are necessary in the complaint, especially where the action is to recover back the property. Even if the plaintiff chooses to waive the tort and sue on contract, [516]*516it would be unnecessary to set out such matters in the complaint. This was held in Roth v. Palmer, 27 Barb. 652, 656. Hogeboom, J., says: “ I think the plaintiff might properly and preferably have prosecuted simply for goods sold and delivered, and allowed the rest of the transaction to come out as matter of evidence.” It was no more necessary to aver that the representations were made by an agent than by the principal, and in both cases such matters were properly treated as evidence, and not as part of the cause of action.

A question was asked of Kelson as to the cost of his real estate. This was excluded, and the defendant excepted. I am at a loss to see what relevancy this question had to the matter in issue. How he lost his property was immaterial. Whether he had any or not when the representations were made would have been pertinent. The defendant appears to have offered this evidence to explain the insolvency of Kelson. As no such inquiry could properly come before the jury, there was no ground on which this evidence could have been received. Proof that, he had lost his property without the least fault, would not excuse the representation that he had property after it was expended.

The plaintiff tendered the notes held by him at the trial, but did not cancel them. This was made a ground of motion for nonsuit. The cancelment of the notes was not necessary at the time. It was sufficient to produce them on the trial. Being the notes of the debtor merely, they cease to be of any value, the moment it was settled that the contract was void. S. L. Seldeít, - J., says, in Kichols v. Michael, 23 N. Y. 264, 273: “It would be more in consonance with equity to hold it sufficient to produce the notes upon the trial and surrender them to the custody of the court, as in that case the rights of both parties are protected. If the fraud is made out and the contract subverted, the notes are void and will be canceled by the court. If the plaintiff fail to establish the fraud, the notes can be returned to him if the nature of the contract is such'that justice requires it.” Such I think to be the proper rule in similar cases.

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Cite This Page — Counsel Stack

Bluebook (online)
2 Abb. Ct. App. 508, 1 Keyes 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/king-v-fitch-ny-1864.