Lloyd v. Smith

142 S.E. 363, 150 Va. 132, 1928 Va. LEXIS 301
CourtSupreme Court of Virginia
DecidedMarch 22, 1928
StatusPublished
Cited by73 cases

This text of 142 S.E. 363 (Lloyd v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd v. Smith, 142 S.E. 363, 150 Va. 132, 1928 Va. LEXIS 301 (Va. 1928).

Opinion

Prentis, P.,

delivered the opinion of the court.

This is a case in which the trial court has sustained a demurrer to the notice of motion, and, the plaintiff failing or declining to amend, has entered final judgment for the defendants. This ruling presents the only question here for review.

The original notice of motion contains these allegations, substantially: That Howard W. Smith and [137]*137William P. Woolls, on May 1, 1924, were acting as attorneys for the plaintiff in certain litigation pending in the Circuit Court of the city of Alexandria, and advised him to permit his debt secured by a deed of trust on certain real estate to become in default, in order to clear up the said litigation by foreclosure; that the defendants, Smith and Woolls, agreed (orally) to finance the purchase of the property, and thereupon secured the defendant, Carlin, to purchase the property with the understanding that plaintiff should have thirty days from the date of sale to make settlement, for which plaintiff agreed to pay Carlin $2,800.00; that at the time of the sale there was an additional agreement to allow the plaintiff thirty days to finance the repurchase, whereupon Carlin would convey or cause the property to be conveyed to Lloyd; that Smith and Woolls agreed to lend Lloyd $30,000.00, and on May 14, Smith, Woolls and Carlin, with intent to defraud the plaintiff, undertook to convey it to Carlin, in violation of the agreement; that on May 15 Carlin, at the request of Smith and Woolls, fraudulently conveyed to Massie, and subsequently, on July 1 and August 13, 1924, respectively, all of the defendants caused Massie to convey it to two corporations, for the aggregate consideration of $40,500.00; that the property was worth $200,000.00; that Smith, Woolls and Massie are large stockholders in both corporations; and that plaintiff’s damage was caused by the defendants’ violation of their contract with the plaintiff, and by their fraud and collusion.

The defendants filed a demurrer, and plaintiff asked leave to amend his notice of motion, which was granted. Presumably, the plaintiff realized that this demurrer to the original notice would have been sustained upon the ground that he could not maintain [138]*138such an action for damages for the breach of such a parol contract for the conveyance of land, because of the bar of the statute of frauds.

He then filed an amended notice. The purpose of this amended notice is to avoid the bar of the statute of frauds, and the right to recover asserted therein is based, not upon the contract, but, reciting and affirming the contract as the basis for the action, alleges deceit and fraud in its inception as the ground for recovery.

The amended notice prays for a judgment for $200,000.00 and contains these allegations: “That on the first day of May, 1924, and for a long time prior thereto, the plaintiff herein was the owner of a tract of land within the corporate limits of the city of Alexandria, Virginia, known as Temple Park, containing eleven acres, more or less, and was also the owner of a one-half interest in a corporation known as the Rosemont Park Company, said corporation being the owner of a tract of land within the corporate limits of the said city of Alexandria, Virginia, containing twenty-eight acres, more or less, and known as Rosemont Park; both of said tracts of land being subject to an indebtedness of about $25,265.50, said indebtedness was evidence by certain promissory notes secured by a deed of trust conveying said tracts of land to the defendant, Howard W. Smith, as trustee. That in addition to this, the plaintiff owed fifty-eight promissory notes for the sum of five hundred ($500.00) dollars each, payable in three years, in the total sum of twenty-nine thousand ($29,000.00) dollars, bearing interest at the rate of six per cent per annum until paid, secured by a deed of trust conveying the undivided one-half interest in the said Rosemont Park to the said Howard W. Smith, as trustee.

[139]*139“That the said plaintiff on the day and year last aforesaid and prior and subsequent thereto, had employed the said defendants, Howard W. Smith and W. P. Woolls, in their professional capacity as attorneys at law, to represent and act for and on behalf of the said plaintiff in certain matters and negotiations pertaining to the aforesaid two tracts of land.

“That the said Howard W. Smith and W. P. Woolls on, towit, on or about the first day of April, 1924, while still purporting to be acting as such attorneys, for and on behalf of the said plaintiff, in the aforesaid matters, advised the plaintiff to allow the payments on the notes, secured by the first deed of trust on said two tracts of land, to become in default for the purpose of having said property sold and thereby clearing up certain litigation which, as he was advised by the said attorneys, affected the title to the said property; that the said Howard W. Smith and W. P. Woolls, then and there, well knowing that they did not intend to finance for the plaintiff’ the purchase of said property when it should be sold under the first deed of trust that was on the two tracts of land as aforesaid, but the said Howard W. Smith and W. P. Woolls contriving an,d fraudulently intending, craftily and subtly to deceive and injure the said plaintiff, and with the intent that the said plaintiff should rely upon the said Howard W. Smith and W. P. Woolls, and to induce said plaintiff to refrain from making other arrangements to finance the purchase of said property, on the day and year last aforesaid, fraudulently and deceitfully informed said plaintiff and agreed with said plaintiff, that they were in a position to finance and that they would finance for the plaintiff the purchase of the said property when the said property was sold under the aforesaid first deed of trust.

[140]*140“That the plaintiff acting upon the aforesaid advice, and relying upon the aforesaid statements of the said Howard W. Smith and W. P. Woolls, that they would finance for the plaintiff the purchase of the said property as aforesaid, permitted the payments under the aforesaid first deed of trust to become in default, and that thereafter, in the month of April, 1924, the said property was advertised for sale under the aforesaid deed of trust by the said Howard W. Smith, trustee, in said deed of trust, said sale to take place on the 3rd day of May 1924.

“That thereafter, to-wit, on or about the 1st day of May, 1924, the said Howard W. Smith and W. P. Woolls, in furtherance of their scheme to defraud and deceive the plaintiff, informed the plaintiff that they would not finance for the plaintiff the purchase of the said property, and that the said Howard W. Smith and W. P. Woolls, then and there, secured the defendant, Chas. C. Carlin, to purchase the said property at said trustee’s sale for and on behalf of and for the use and benefit of the said plaintiff. The said Howard W. Smith, W. P. Woolls and Chas. C. Carlin representing to the plaintiff that he the said plaintiff should have thirty days from the date of the said sale of the-said property, in which to re-finance the purchase of the said property and make settlement with the said Howard W. Smith, trustee, for the purchase price of the said property, the said Chas. C. Carlin to receive from the said plaintiff the sum of $2,800.00 for his services, which said sum the plaintiff agreed to pay, and upon the payment of the purchase price for said property, it was to have been conveyed to said plaintiff by the said Howard W. Smith, trustee.

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Cite This Page — Counsel Stack

Bluebook (online)
142 S.E. 363, 150 Va. 132, 1928 Va. LEXIS 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lloyd-v-smith-va-1928.