Noll v. Hirschfeld

195 N.W. 101, 224 Mich. 439, 1923 Mich. LEXIS 945
CourtMichigan Supreme Court
DecidedOctober 1, 1923
DocketDocket No. 1
StatusPublished
Cited by2 cases

This text of 195 N.W. 101 (Noll v. Hirschfeld) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noll v. Hirschfeld, 195 N.W. 101, 224 Mich. 439, 1923 Mich. LEXIS 945 (Mich. 1923).

Opinion

McDonald, J.

All of the parties reside in the city of Detroit. The plaintiffs are natives of Slavonia in Hungary. The defendants are copartners engaged in the foreign exchange and brokerage business. The action is brought to recover $2,025 which plaintiffs paid to the defendants for Royal Hungarian war loan bonds. On the 21st day of February, 1916, the plaintiffs went to defendants’ offices and paid them $2,025, for which they received the following receipt:-

“$2025. Detroit, Mich.,
Feb. 21, 1916.
“Received of Joseph Noll and wife, Gertrude Noll, two thousand and twenty-five dollars for K. 15,000 of 6% Royal Hungarian war loan bonds, nominal value.
“Hirschfeld Bros.
J. H.”

[441]*441It is the plaintiffs’ claim that, having learned through a newspaper advertisement that defendants had these bonds for sale, they went to their office for the purpose of purchasing some; that they paid their money and were informed that the bonds would be delivered in two or three weeks; that they were not delivered though interest thereon was paid by the defendants in two separate installments of $62.50 and $45 respectively; that they became impatient at the delay in receiving the bonds, and frequently went to defendants’ place of business and demanded them or their money back; that defendants advised them to wait and they did so, frequently protesting, until June 6, 1921, when this suit was commenced.

It is the defendants’ claim that their transaction with the plaintiffs was not for the sale of bonds; that their undertaking was to send plaintiffs’ subscription for the bonds to the Royal Hungarian Postal Savings Bank at Budapest, through which all securities issued by the Hungarian government were handled; that all such bonds subscribed for were retained on deposit in this bank and a so-called revenue book issued to the subscriber; that on receipt of plaintiffs’ subscription they immediately sent it to the bank at Budapest. The money was received by the bank May 4, 1916, but the revenue book was not sent to the defendants until June 21, 1921, 15 days after the commencement of this suit, and a little more than five years after the money was paid by the plaintiffs. The defendants say that this was due to the failure of the mailing service during the war period and to the revolutionary disturbances in Hungary following the armistice; that in this transaction with the plaintiffs, they were acting as agents only in taking and forwarding their subscription; that they discharged their duties as such and that they made no representations that the bonds [442]*442or revenue book would be delivered at any specified time.

At the conclusion of the plaintiffs’ proofs defendants made a motion for a directed verdict which was denied. After the verdict they asked for a judgment non obstante veredicto, and later moved for a new trial. These motions having been refused they have brought the case here on writ of error, claiming that the judgment should be reversed for the following reasons:

“(1) The legal relation between the parties was one of principal and agent and not one of vendor and vendee. No violation of any duties as agent having been shown, defendants were entitled to verdict and judgment.”

This contention of counsel cannot be sustained if there was any competent testimony from which the jury could determine that the contract was one of barter and sale. Touching this question in his reasons for denying defendants’ motion for a new; trial, the circuit judge said:

“The plaintiffs’ testimony is that, in answer to a newspaper advertisement of defendants that they had Hungarian bonds for sale, they went to defendants’ office to buy some bonds. They asked defendants how many bonds they could get for $2,025, were told 15,000 Kronen, and defendants promised delivery within three weeks. * * *
“When the plaintiffs paid defendants $2,025 in American money upon the transaction, the defendants gave them a receipt, written in English by defendants, covering the amount paid and reciting ‘for K. 15,000 of Q% Royal Hungarian war loan bonds, nominal value.’ By ‘nominal value’ is meant par value. The receipt upon its face contemplated the transfer of designated property for a price certain. It has the earmarks of a contract for sale. * * *
“The written evidence of the transaction, prepared by defendants, contemplates, not that the defendants, acting as agents for the plaintiffs for compensation, [443]*443should procure for them as much in bonds as their money would buy, but that the defendants, assuming the risk of adverse changes and reaping the benefit of both known present and possible future conditions, agreed to deliver a certain amount in bonds for a certain sum. This evidence strongly sustains plaintiffs’ contention that the transaction was one of barter and sale. * * *
“While it is true that there is much evidence favoring the agency theory, the conflicting testimony, the receipt, and the absence of many of the basic elements of an agency, render the character of the transaction, in my judgment, a fair question for the jury.”

The above conclusions, which we approve, dispose of this question adversely to defendants’ claim.

“ (2) Defendants were entitled to a directed verdict and to a judgment ñon obstante, because of the failure of plaintiffs to bring their testimony within the allegations of their declaration.”

In view of the testimony, the declaration is rather unusual. It contains four counts, most of which are inconsistent with the theory upon which the case was submitted to the jury. Many of the allegations in the 1st and all of those in the 2d, 3d and 4th are not sustained by any proofs. If there are any allegations with which the testimony is not at variance, they will be found in the. following paragraphs 5 and 7, of the first count.

“5. In the alternative that the defendants in consideration of the payment by the plaintiffs to them of the sum of $2,025 promised to deliver to the plaintiffs three weeks after February 21, 1916, Royal Hungarian war loan bonds of the face of 15,000 Kronen payable in five years from date and bearing interest at the rate of 6% per annum, being obligations of the Kingdom of Hungary, and the defendants further promised and warranted that they owned the said bonds and were in a position to deliver the same to the defendants at the time promised.
“7. That the defendants did not at the said time own
[444]*444the said bonds, that they were not then in a position to deliver the said bonds to the plaintiffs, and that, though often requested, the defendants never have delivered the said bonds to the plaintiffs.”

Omitting the warranty part of paragraph 5, there is left a distinct allegation that the plaintiffs paid $2,025 for certain bonds to be delivered at a specified time; and paragraph 7 alleges that the defendants have never delivered the bonds to the plaintiffs although often requested so to do. These allegations state a cause of action.

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Cite This Page — Counsel Stack

Bluebook (online)
195 N.W. 101, 224 Mich. 439, 1923 Mich. LEXIS 945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noll-v-hirschfeld-mich-1923.