Mendenhall v. Stewart

47 N.E. 943, 18 Ind. App. 262, 1897 Ind. App. LEXIS 202
CourtIndiana Court of Appeals
DecidedOctober 13, 1897
DocketNo. 2,144
StatusPublished
Cited by16 cases

This text of 47 N.E. 943 (Mendenhall v. Stewart) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mendenhall v. Stewart, 47 N.E. 943, 18 Ind. App. 262, 1897 Ind. App. LEXIS 202 (Ind. Ct. App. 1897).

Opinion

Robinson, J. —

The complaint in this action avers, in substance, that on and prior to the 2d day of June, 1893, appellant Eilar was insolvent, and desired to purchase a stock of drugs from appellee, and being unable to purchase said stock on account of his insolvency, the appellants, Mendenhall, Hoover, and Eilar conspired together with the intent to fraudulently procure from appellee on the credit of Eilar, said goods by means of false representations as to the credit of Eilar and Hoover, and by uttering and delivering to appellee a false letter of credit as to the solvency and credit of Hoover and Eilar; that pursuant to said conspiracy, appellants caused to be uttered to appellee a false letter of credit purporting to be executed by Hoover and witnessed by Mendenhall, in which it was falsely stated that said Hoover was worth three thousand dollars above his indebtedness, and in which he purported to guarantee the payment of all bills of goods Eilar might purchase of appellee to the amount of fifteen hundred dollars; that appellee being ignorant of the insolvency of Eilar, and relying upon said letter as to the solvency of Hoover, and relying upon said letter as genuine, and especially being assured thereof by said Mendenhall witnessing the same, sold and delivered to Eilar a bill of goods; that said letter of credit was false:; that Hoover did not execute the same, and that Mendenhall did not see him execute it, but attested the same without knowing whether it was genuine or not; that the representations in said [264]*264letter as to the solvency of Hoover were untrue; that Hoover was worth nothing above his indebtedness, and that all his property was at the time incumbered for more than its value, which facts Mendenhall and Eilar knew, but of which appellee was ignorant; that shortly after said sale of goods, and before the bills for the same became due, Eilar mortgaged and assigned all his property, including said goods, to other parties, and is wholly insolvent; that said goods were sold on the faith of the representations in said letter, and that they would not have been sold but for said letter and the attestation thereon by said Mendenhall. The letter of credit and a bill of particulars are filed with the complaint as exhibits.

Separate demurrers to the complaint by each of the appellants were overruled, and the cause was put at issue by the general denial. A verdict was returned in appellee’s favor, upon , which judgment was rendered over appellant, Mendenhall’s motion for a new trial.

The overruling of the demurrers to the complaint, and overruling the motion for a new trial are assigned as errors.

In support of their position, that the complaint is in- . sufficient, appellants’ counsel cite Cook v. Churchman, 104 Ind. 141, and Severinghaus v. Beckman, 9 Ind. App. 388. In the case of Cook v. Churchman, supra, it was sought to hold Churchman on an oral statement of his that Thomas Cottrell was a man of property, and that under his guaranty the appellants would be perfectly safe in selling goods to Cottrell’s son. It was held that under that section of our statute of frauds which provides that, “No action shall be maintained to charge any person by reason of any representation made concerning the character, conduct, credit, ability, trade, or dealings of any other person, unless such representa[265]*265tion be made in writing and signed by the party to be charged thereby, or by some person thereunto by him" legally authorized.” (Section 6634, Burns’ R. S. 1894), that Churchman was not liable on the oral representations made. But in that case the court uses the following language: “If a case should arise in which it appeared that two or more persons entered into a conspiracy, the common purpose of which was to defraud another of his money or goods', or that some were engaged to assist" others in accomplishing a fraudulent or illegal act, then whatever shams or tricks may appear to have been resorted to, the court will deal with the case as the facts may require.” See Breedlove v. Bundy, 96 Ind. 319.

In Severinghaus v. Beekman, supra, it was alleged in the complaint that appellant and another had maliciously conspired and agreed with each other to slander and defame appellee by accusing her of the crime of perjury, and that in pursuance of such conspiracy, the appellant spoke of the appellee certain false and defamatory words. It was held in that case that “where a conspiracy is alleged to have been formed to commit an act which, if done by one alone, would be an actionable wrong, or whether the conspiracy charged is not, by law, a crime, then the conspiracy is not the gravamen of the action, and the tort, for the accomplishment of which it was formed, must be well pleaded before the complaint can repel a demurrer.”

It is well settled that if there is a conspiracy between two or more persons, each person engaged in the conspiracy is liable for the acts and declarations of the others done and made in furtherance of the conspiracy. Boaz v. Tate, 43 Ind. 60; Breedlove v. Bundy, supra; Wolfe v. Pugh, 101 Ind. 293; Hodgin v. Bryant, 114 Ind. 401.

In the case of Kirkpatrick v. Reeves, 121 Ind. 280, the [266]*266court said: “An unqualified statement that a fact exists, made for the purpose of inducing another to act upon it, implies that the person who makes it knows it to exist, and speaks from his own knowledge. If the fact does pot exist, and the defendant states of his own knowledge that it does, and induces another to act upon his statement, the láw Will impute to him a fraudulent purpose.”

While the complaint in the case at bar charges a conspiracy, yet the cause of action is what is alleged to have been done pursuant to the alleged conspiracy. The gist of the cause of action is obtaining credit of appellee for Eilar and obtaining for Eilar certain goods by writing to appellee the alleged false letter of credit or guaranty. It apjpears that at the time the letter was presented to appellee it had not been signed by Hoover, although his name was attached to the letter and the signature witnessed by Mendenhall. The witnessing by Mendenhall of the signature made none of the statements in the letter his statements. His liability arises from attesting a signature that had never been made, and thus empowering a person to purchase goods upon a letter that had never been authorized. The complaint alleges that Mendenhall attested the signature of Hoover when he knew that Hoover had not signed the letter of credit or guaranty, and when he knew that the statements in the letter were false. It cannot be said that this is in' effect an oral representation of the solvency of Eilar. It is not sought to recover for any loss resulting from the fraudulent representations as to the solvency of Eilar, but appellee seeks in her complaint to recover the price of the stock of drugs obtained from her by fraud.

The only representation made by Mendenhall was by means of the act of subscribing his name as a [267]*267witness to the signature of Hoover. The legal effect of Mendenhall’s act was that he had seen Hoover sign his name, and at the request of some one, presumably Hoover, he had signed the letter as attesting witness. 1 Greenleaf Ev. (15th ed), 569, 569a. By that act, under the allegations of the complaint, he represented as facts what he knew to be untrue.

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Bluebook (online)
47 N.E. 943, 18 Ind. App. 262, 1897 Ind. App. LEXIS 202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendenhall-v-stewart-indctapp-1897.