Nichols v. Atwood

149 N.W. 672, 127 Minn. 425, 1914 Minn. LEXIS 911
Supreme Court of Minnesota·Decided December 4, 1914·No. Nos. 18,815-(70)·Published·Cited by 2 cases

Opinion

Holt, J.

Plaintiff, claiming to be owner by assignment of a subscription contract executed by defendant for 45 shares of tbe treasury stock of tbe Colorado-Yule Marble Co., sued to recover tbe amount unpaid. [426] Tbe answer alleged that plaintiff was not tbe owner of tbe contract; that bis purported assignor was not tbe party with whom defendant contracted, but was tbe mere agent of tbe corporation mentioned; and that defendant’s signature was obtained by means of false representations in regard to its business and property. Tbis appeal by defendant is from an order granting plaintiff a new tidal after verdict and special findings in defendant’s favor.

Early in 1910 defendant’s attention was called to tbe stock and business of tbe Colorado-Tule Marble Co., hereafter called tbe marble company, a ten million dollar Colorado corporation, owning extensive marble quarries and equipments in that state. Erom tbe start tbe corporation bad in tbe Knickerbocker syndicate a fiscal and transfer agent to dispose of its stock and securities. In 1907 tbe Knickerbocker corporation was merged in tbe then organized Eidelity Bond & Mortgage Co., hereinafter referred to as tbe bond company, a New York corporation, in 1912 purporting to have a capital and surplus of $1,321,509.54. Plaintiff procured tbe subscription from defendant. He claims that be was then tbe western sales agent of tbe bond company, but bad no connection with tbe marble company except as stockholder until in December, 1911, when be entered its employ. Tbe subscription contract here involved was signed January 13, 1911. About six months previously defendant bad bought through plaintiff, five shares of tbe marble company stock. By means of plaintiff’s personal solicitations and literature mailed or banded to defendant, be was importuned to purchase more, which finally culminated in tbe contract mentioned tbe day after tbe president and vice-president of tbe marble company, at a meeting or luncheon arranged for by plaintiff, bad made certain representations to defendant concerning tbe property and prospects of tbe corporation. It is not necessary to particularly refer to tbe alleged fake representations which induced defendant to subscribe. It is sufficient to state that tbe evidence at tbe trial centered on these propositions: Was plaintiff tbe real party in interest? Was tbe marble company in fact a party to tbe subscription contract with defendant ? Was tbe subscription for 45 shares of stock obtained from defendant by means of fraud and deceit? Tbe jury by special- findings [427] answered the first in the negative, and the other two in the affirmative, in addition to rendering a general verdict in favor of defendant. The court granted a new trial on the sole ground that prejudicial ■error was committed in receiving parts of an exhibit numbered 7 in evidence.

The contention of appellant is that Exhibit 7 was admissible and, even were it otherwise, no prejudicial error resulted from its reception since the jury found that defendant’s contract was not with plaintiff’s assignor, and that plaintiff is not the real party in interest. The respondent retorts that there is no evidence to sustain either the general verdict or special findings and that the record discloses prejudicial errors, other than the one appearing to the trial court, therefore the order must be affirmed. This result is inevitable, if the verdict lacks support or there be rulings raised by the motion for a new trial disclosing prejudicial error. Fitger v. Guthrie, 89 Minn. 330, 94 N. W. 888; Poirier Mnfg. Co. v. Griffin, 104 Minn. 239, 116 N. W. 576.

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Nichols v. Atwood, 149 N.W. 672, 127 Minn. 425, 1914 Minn. LEXIS 911 (Mich. 1914).

149 N.W. 672 (Nichols v. Atwood) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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229 N.W. 133 (Supreme Court of Minnesota, 1930)