Papke v. G. H. Hammond Co.

61 N.E. 910, 192 Ill. 631
CourtIllinois Supreme Court
DecidedOctober 24, 1901
StatusPublished
Cited by47 cases

This text of 61 N.E. 910 (Papke v. G. H. Hammond Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Papke v. G. H. Hammond Co., 61 N.E. 910, 192 Ill. 631 (Ill. 1901).

Opinion

Mr. Justice Magruder

delivered the opinion of the court:

First—The finding of facts, originally made by the Appellate Court, and the amendment thereof subsequently allowed, must be read together as one finding of facts. By the finding of facts, made by the Appellate Court, that court found that the release, executed by the plaintiff in error and introduced in evidence by the defendant in error upon the trial below, was a bar to the right of recovery in this suit by the plaintiff in error. The Appellate Court has embodied in its judgment' a finding, that the release was a valid writing, and that by it plaintiff in error released and forever discharged defendant in error from all claims or demands of every sori; arising from the injuries mentioned in the declaration. There was no finding by the Appellate Court, either that the release was obtained by fraudulent representations made to the plaintiff in error, or that it was not obtained by such fraudulent representations. This is clearly manifest from the language of the amendment to the finding of facts, which sets forth that the court does not decide, whether the plaintiff in error has or has not a remedy in equity' for a reformation or setting aside of said release for fraud in the procuring of the same.

In such cases, there may be fraud, which inheres in the execution of the instrument; that is to say, where the signer of the instrument is deceived into signing it by the belief that he is signing something- other than that which he does really sign. Fraud in the execution of the instrument is practiced, where the instrument is misread to the party signing it, or where there is a surreptitious substitution of one paper for another, or where, by some other trick or device, a party is made to sign an instrument which he did not intend to execute. In such cases, the nature of the- instrument signed is not fully understood by the party signing it. There is another kind of fraud, which consists in inducing the party,'signing an instrument, to execute it by misrepresentation, or fraudulent representations as to collateral matters, or as to the nature and value of the consideration. In the latter class of cases, the party fully understands what he is signing", and is aware of the nature and character of the instrument executed by him, but is deceived by fraudulent representations as to facts outside of the instrument itself.

Where fraud of the first kind exists, that is to say, fraud in the execution of the instrument itself, it may be shown in an action at law; but where the fraud consists in fraudulent representations as to collateral facts, or as to the nature or value of the consideration of the instrument, equity must be resorted to to reform or set aside the instrument.

By finding that the release introduced in evidence in this case was a valid writing, and by further finding that nothing was decided as to the right of the plaintiff in error to pursue his remedy in equity, if he had one, for a reformation or setting aside of the release for fraud in the procuring of the same, the Appellate Court has found that there was no fraud in the execution of the release. In this regard, the finding of facts by the Appellate Court was necessarily different from the finding of facts by the trial court, because the latter court could not have rendered judgment in favor of the plaintiff in error without finding that the release was not a bar to his right of recovery. It is apparent from the finding of the Appellate Court, that it excluded all evidence of fraudulent representations as not being gertnain to the issue, upon the ground that a court of law had no jurisdiction to try the question, whether or not the release had been obtained by fraudulent representations.

The evidence is clear, that plaintiff in error fully understood that he was sigming a release of all his claims or demands against the defendant in error, arising from the injuries received by him while at work for the defendant in error. He fully understood the character of the instrument which he signed, and received the consideration named therein, to-wit: the sum of $550.00, and still retains the same. There is no claim on the part of the plaintiff in error, or his counsel, that there was any fraud in the execution of the instrument by any misrepresentation as to the character of the instrument signed. The only fraud, charged by the plaintiff in error, is that fraudulent representations as to collateral matters were made to him, in order to induce him to sign an instrument, which he well understood at the time to be, in its nature and effect, a release.

The finding of facts, made by the Appellate Court, would have been more complete, if the finding had proceeded to state that the release had not been obtained by any fraud in the execution thereof. But such finding is embraced and included in the general finding that the release was a valid writing. The finding, that it was a valid writing, was the finding of an ultimate fact, and the fact, that it was not procured by fraud in the execution, was merely an evidentiary fact. It is not necessary that the Appellate Court, in embodying in its judgment the finding of facts which the statute requires, should find the merely subordinate or evidentiary facts which, when established, contribute to the establishment of the ultimate fact. It is the ultimate fact, which must exist, in order to sustain the cause of action or defense. (Travelers’ Ins. Co. v. Pulling, 159 Ill. 603; Hogan v. City of Chicago, 168 id. 551).

Where the Appellate Court makes such a finding of facts, as is contemplated by section 87 of the Practice act, this court may inquire, whether the law has been correctly applied to the facts, to determine whether the refusal to remand the cause was proper. (Hogan v. City of Chicago, supra). If the Appellate Court has here embodied in its finding of facts what appears to be a conclusion of law, it is apparent that its holding on such question of law constitutes a holding of law on conceded facts. (Meyer v. Illinois Central Railroad Co. 177 Ill. 591).

The main question of law, therefore, which is presented for our consideration is, whether, in this action at law, it was proper to consider only fraud in the execution of the release, if there was any, and not fraud, consisting of false representations as to the nature and value of the consideration, upon which the release was based.

It seems to be well settled that, when the signature to an instrument under seal is procured by false representations, the nature of the instrument being fully understood by the party signing it, the effect of such instrument can only be avoided by a separate proceeding in equity.

Perhaps the leading case upon this subject in this country is the case of George v. Tate, 102 U. S. 564, where the Supreme Court of the United States say: “It is well settled that the only fraud, permissible to be proved at law in these cases, is fraud touching the execution of the instrument, such as misreading, the surreptitious substitution of one paper for another, or obtaining by some other trick or device an instrument which the party did not intend to give.

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Bluebook (online)
61 N.E. 910, 192 Ill. 631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/papke-v-g-h-hammond-co-ill-1901.