McEwen v. Gotthelf

140 N.W. 264, 31 S.D. 180, 1913 S.D. LEXIS 119
South Dakota Supreme Court·Decided March 11, 1913·Published·Cited by 3 cases

Opinion

GATES, J.

This action was begun in October, 1911, for an accounting between tenants in common upon the sale of their land and for the recovery by plaintiff of his alleged share of the additional consideration received 'by defendant over and above the amount ^reported- by defendant to plaintiff. The action was tried by the court without a jury. The court found that the defendant knowingly and fraudulently withheld from plaintiff the facts in regard to such additional consideration for the purpose of'cheating and defrauding plaintiff. Judgment was entered in favor of plaintiff and against the defendant for the sum of $5,000 and- interest. The claim of the plaintiff rests upon alleged fraud and deceit on the part of defendant, in the transaction while defendant relies upon a contract. On July 11, 19x1, the plaintiff and defendant and defendant’s -brother, M. J. Gotthelf, were, and had been for some years prior thereto, the owners of a large tract of pine land in the counties of Custer and Pennington, in this state, each owning an undivided one-third thereof. On .that date plaintiff delivered to defendant a contract in writing, whereby he agreed at any time on or before July 11, 1912, upon payment -to him of the sum of $10,962.83, and the cancellation of any and all indebtedness owing from him to defendant to convey to defendant his undivided one third of said property. Said contract further -pro vided: [185] “This is strictly an optional contract, which 'if the said Ed. J. Gotthelf fails to make said payment, I cancel said obligations and indebtedness on this contract and same shall be void.” On August 5; 19x1, defen dent went to Freeman, S. D., and had a talk with John Schamber about selling him the whole property. On August 7th defendant invited plaintiff to his home and the contract was altered by striking out the consideration as underscored above, and interlining the following as the consideration: “$11,999 'm ca's'h or good security, such as the said Ed. J. Gotthelf and M. J. Gotthelf is willing to take for their interest” in the .property. Defendant’s evidence tends to show that this change was made with plaintiff’s consent. Plaintiff’s evidence tends to show that the change was made without his consent. On August 12, 1911, defendant closed the deal with Schamber for the entire property, taking notes for the sum of $36,750, secured by collateral notes, together with a building and lot and stock of goods at Alpena, S. D., which were put in at the trading price of $27,250 making the total nominal consideration $64,000. Defendant took possession of the store building and stock of merchandise at Alpena on August 14, 1911, .but the deeds were not delivered to Schamber until on or about August 29, 1911. He conducted the store business until November, 1911, when he traded the lot and building and remainder'of the merchandise for land. Defendant caused the title of this land to' be placed in the name of defendant’s wife. The only consideration received by plaintiff -for his interest in the property was notes to the amount of $12,250. Plaintiff did not learn the truth of the transaction until September 13, 1911.

The court found the Alpena property and merchandise to be worth not less than $20,000 at the time defendant took possession, but limited plaintiff’s recovery to $5,000, instead of fixing at at one-third of $20,000.

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McEwen v. Gotthelf, 140 N.W. 264, 31 S.D. 180, 1913 S.D. LEXIS 119 (S.D. 1913).

140 N.W. 264 (McEwen v. Gotthelf) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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