McCane v. Wokoun

189 Iowa 1010
CourtSupreme Court of Iowa
DecidedOctober 19, 1920
StatusPublished
Cited by3 cases

This text of 189 Iowa 1010 (McCane v. Wokoun) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCane v. Wokoun, 189 Iowa 1010 (iowa 1920).

Opinion

Weaver, C. J.

1' fightfo reiy Many of the material facts in the case are not the subject of dispute. The plaintiff was the owner of a farm lying on or near the Wapsipinicon River, in Linn County. The defendant Louis Wokoun was an<l is the cashier of a. bank at Cedar Rapids, Iowa. From or through this bank, in August, 1917, plaintiff obtained a loan of $8,000, secured by mortgage on the farm. In negotiating the loan, the bank, by its committee, consisting of the cashier, Wokoun, and two other persons, visited and personally examined the farm, and, as they were satisfied with the security, the loan was made. On the occasion of this visit to the farm, the committee was accompanied by the plaintiff, and there was more or less conversation between him and them concerning the farm, its character and value. In September, 1917, after the loan had been perfected,, plaintiff offered the farm for sale at auction, and, as the day, September 21st, approached, asked Wokoun to serve as clerk of the sale. To this Wokoun consented, and, as a witness, swears that, while he was driving to the farm with plaintiff, the latter [1012]*1012said to him that he had received an offer of $150 an acre for it, but, the proposed buyer being unable to make a sufficiently large initial payment, he could not accept it. When they arrived at the farm, the sale proceeded. Some other person or persons having bid the sum of $100 per acre, defendant raised the bid to $101,, and the property was struck off to him. Pursuant to this sale, the contract here sued upon was made and executed. The contract provides for a cash installment on that date, the further sum of $5,000 on November 1st, and for final payment and settlement on the following March 1st, the defendant assuming payment of the mortgage debt to the bank.

On September 26,, 1917, defendant telegraphed to plaintiff at his home in Illinois, saying, “Boundary line not as stated by you. Will nullify the contract,” and on same day, wrote plaintiff a letter, further complaining “that a number of acres of the farm lay across the river, and that there was other waste land.” On October 8,1917, defendant again wrote plaintiff, saying:

“As I advised you a short time after the signing of the contract between you and myself, I will want to have the land surveyed before any further payment is made under the contract. I would suggest Mr. T. B. Warriner of this city as a good surveyor as he is well acquainted with the lands in this county and has done most of the surveying in this vicinity.”

On October 25, 1917, he again wrote-as follows:

“Yoiir favor of the 24th inst. received, advising that you left the deed and contract at the City National Bank, Evans-ton, 111.,, and that I should send the $5,000 payment and the second mortgage to that bank. I wrote you twice in regard to having the land surveyed. I have not .received any word from you that you intend to have that done. The land was purchased at so much per acre and I do not propose to pay for any more acres than what there will be in the tract. On account of heavy subscriptions to the Liberty Bonds, I may have some difficulty in obtaining the $5,000 on November 1st. If you had any proposition from anyone else I wish [1013]*1013.you' would give me the name of the parties who figured in it.”

On November 3, 1917, replying to plaintiff’s request for payment of the installment of $5,000 on the purchase price, defendant again said:

“As I have stated twice now no further payment will be made until the land is surveyed by a • competent surveyor. I might take the land if you deduct the amount of the second mortgage $1,810.70 to offset your misrepresentations and am not very anxious to do that.”

On November 8, 1917, he wrote:

“Your favor of 6th inst. received. You state you are surprised at my saying that you misrepresented the boundary line. You did not on the day of sale, but you did when you made your application for the loan when you walked with me while inspecting the farm. The fact is that I had no intention of Inlying at the sale, and I made my bid with the only intention to help your sale, but unfortunately no other bid was made. The conditions caused by the Liberty Bond subscriptions have so changed from the time I made the contract, that it is difficult for me to raise the $5*000 even if there was no difference between us. I do not believe in lawsuits any more than you do, and have always avoided them if possible, but in this case the farm was bid in under the impression conveyed by you when I examined the farm for the loan. As far as any damages are concerned, you could not collect anything under the terms of the contract. You can try to force me to fulfill the contract but no more.”

Other correspondence ensued, the difference between the parties gradually becoming more embittered, until this action was begun, in October, 1918.

It should also be said that, at the date of the contract, the land was in possession 6f one Ramsey, under a lease from the plaintiff for the year 1917. After the .sale, the tenant attorned to Wokoun, who received the rent, and continued Ramsey in possession for the years' 1918 and 1919. The rent received, Wokoun says* was applied by him to the payment of taxes, repairs, insurance, and interest on the [1014]*1014loan, and to some minor improvements — -all of which expenses, he says, he paid “to protect the bank.” In October, 1917, defendant listed the land with one or more agents for sale or trade, at a stated value of $125 per acre.

As a witness, defendant makes no claim or pretense that he ever had any negotiation with plaintiff for the purchase of the farm, except such as is shown by his bid at the auction sale, and the execution of' the contract pursuant thereto. His charge of false representations is based wholly on what he asserts plaintiff said to him, or in his presence, when the loan committee visited the farm,, weeks before the subject of a sale of the property had been mentioned by either party, and upon the alleged statement made by the plaintiff, prior to the auction sale, that he had been offered $150 an acre. The subject of a sale of the land to the defendant does not appear to have ever been discussed between the parties, up to the time defendant made his bid at the auction, nor did plaintiff at any time request or solicit defendant to bid at the auction. Indeed, if we may, credit defendant’s own statement in his letter of November 8, 1917, the bid by him was not made with any intention of buying, but was voluntarily offered by him to “help on” the sale; “but unfortunately no other bid was made,” and he ,thus unexpectedly and unintentionally became the purchaser. Taking his own showing as literally true, it must be said that there is an utter failure of evidence on which the court or jury could base a finding of false representations by the plaintiff. It is an elementary principle of law on this subject that:

“No one has a right to accept and rely upon the representations of others but those to influence whose action they were made.” 2 Cooley on Torts (3d Ed.) 940.

In the same connection, the same author says:

“When statements are made for the- express purpose of influencing the action of another, it is to be assumed they are made deliberately, and after due inquiry, and it is no hardship to hold the party making them to their truth.

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189 Iowa 1010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccane-v-wokoun-iowa-1920.