Nichols v. Coleman

96 A.D. 353, 89 N.Y.S. 234

Opinion

Hatch, J.:

The plaintiffs bring -this action to recover damages averred to have been sustained by reason of the false and fraudulent representations made by the defendants to procure the delivery to Daniel Coleman, of two hansom cabs, pursuant to. the terms of a conditional sale. The contract of sale was made by Daniel Coleman on the 16th day of April, 1897, and in terms it provides that the said Coleman had hired from the plaintiffs the cabs therein described, for the use of which he agreed to pay $1,641, $1 upon the execution of the contract and the balance in monthly installments of $50 and $100 per month, secured to be paid by twenty promissory notes made by Daniel Coleman and payable to the plaintiffs, the first seven of these notes being for $50 each, twelve for $100 each and the last for $90. These notes all bore date April 12, 1897, the first being payable one month after date and the others falling due successively at intervals of one month, the last one being due twenty months from date. It was further provided in the contract that upon the final payment of all said notes, with interest thereon, title to the cabs should then vest in Daniel Coleman.

At the time of the negotiations between these parties which resulted in the execution of the conditional contract of sale and of the delivery of the cabs, Daniel Coleman and the other defendants, his two sons,, each stated and represented that Daniel Coleman was the owner of the livery business conducted at No. 120 West Fifty-sixth street in the city of New York, that being the place of business of Daniel Coleman and in connection with which the cabs were to be used. The plaintiffs testified that in making such' sale they relied upon these representations and believed them to be true and were thereby induced to make the sale. After the execution of the contract the cabs and the equipment which accompanied them, all of which was embraced in the conditional con[355] tract of sale, were delivered to Daniel Coleman on the 16th day of April, 1897. Coleman paid the first two notes of fifty dollars . each as they matured, but defaulted in payment of all of the others. Plaintiffs made repeated efforts to collect the notes, but failing therein, they demanded a redelivery of the property pursuant to the terms of the contract, and on the 20th day of January, 1898, upon a written request, the cabs were delivered to and received by the plaintiffs. It was made to appear upon the trial that prior to the delivery of the cabs to Daniel Coleman and prior to the representations which were made by him and the other defendants, as hereinbefore stated, Daniel Coleman, under date of March 30,1897, had executed and delivered a bill of sale of all of his property upon the premises Nos. 120-122, West Fifty-sixth street, and also all his right, title and interest in and to a business conducted by him at No. i 102 East Forty-first street in trust for the benefit of the children of Daniel Coleman pursuant to a written instrument bearing even date with the bill of sale. These papers had been executed and delivered prior to the transaction, the subject of this action, and the defendant Harry Coleman was at the time of the delivery of the cabs in the possession and ownership of the business. There was, however, no apparent change in the conduct of the business or in the control of the property. Upon discovering these facts the plaintiffs brought this action and surrendered the notes upon the trial. It was stipulated by counsel upon the tidal that the measure of damages, if the plaintiffs were entitled to recover, should be one dollar per day for each of the two cabs for the period of 274 days, that being the time the cabs were in the possession of the defendants. The case being submitted to the jury, it returned a verdict in favor of the plaintiffs for the sum so agreed upon less the sum of $100, represented by the two promissory notes which were paid by Daniel Coleman. Prior to the submission of the case to the jury a colloquy was had between the court and counsel as to the right of the plaintiffs to recover interest upon any sum which the jury might award. No conclusion was reached thereon until the court had submitted the question to the jury, when the record states : “ By consent of counsel the question of interest is reserved and may be found by the court hereafter.” After a verdict was rendered the court added interest to the amount awarded in the sum of $155.16.

[356] It was not controverted but that the bill of sale which transferred the title to the property from Daniel Coleman to his son Harry was executed and delivered prior to the time of the conditional sale of the cabs, nor was it claimed that any disclosure of its contents was made to the plaintiffs or that they knew anything about it. Its effect was to divest Daniel Coleman of all right, title and interest in the property. The evidence upon the part of the plaintiffs tended to establish that the representations were made and, if made, their falsity was admitted. The question became one, therefore, for the jury and their finding upon that subject is conclusive. Plaintiffs had the right pursuant to the terms of the contract to repossess themselves of the property and to sue for the damages which they had suffered by the fraud perpetrated upon them. (Thomas v. Dickinson, 65 Hun, 5; Pryor v. Foster, 17 N. Y. St. Repr. 472 ; 24 id. 917; affd. on appeal, 130 N. Y. 171.)

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Nichols v. Coleman, 96 A.D. 353, 89 N.Y.S. 234 (N.Y. Ct. App. 1904).

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Related

Pryor v. . Foster
29 N.E. 123 (New York Court of Appeals, 1891)
Brush v. Long Island Railroad
10 A.D. 535 (Appellate Division of the Supreme Court of New York, 1896)
Thomas v. Dickinson
19 N.Y.S. 600 (New York Supreme Court, 1892)