Parks v. Bucy

211 P. 638, 72 Colo. 414, 1922 Colo. LEXIS 569
CourtSupreme Court of Colorado
DecidedDecember 18, 1922
DocketNo. 10,519
StatusPublished
Cited by9 cases

This text of 211 P. 638 (Parks v. Bucy) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parks v. Bucy, 211 P. 638, 72 Colo. 414, 1922 Colo. LEXIS 569 (Colo. 1922).

Opinion

Me. Justice Campbell

delivered the opinion of the court.

The defendant, Parks, sold and conveyed to the plaintiff, Buey, all the rights and interest of the vendor, the patentee in a patent of a “sign gate,” to manufacture, sell and install the invention in seven of the states of our Union. As part payment of the agreed consideration, plaintiff conveyed to the defendant certain real estate, and gave his promissory notes for the balance, secured by a trust deed on town lots in the city of Sterling, Colorado. Deeming that he had been defrauded, the plaintiff elected to rescind the contract of sale and brought this action asking for a cancellation of these instruments. The district court found the issues for the plaintiff and entered the appropriate decree in such cases. A reversal of that decree is asked by the defendant in the pending writ.

• The complaint is in the usual form in a suit for rescission. The specific fraudulent acts relied upon are that the defendant falsely stated to the plaintiff that he was the owner of a patent right, represented by a certain patent applied for in the Patent Office of the United States of America, for a sign gate, and then and there represented that there was no question as to its “patentability,” and that patent would issue thereon within a very short time, and further falsely represented that said patent pending was an absolute and complete protection against infringe-, ment by any person of the use of said gate referred to. Appropriate allegations of plaintiff’s reliance upon such representations, negation thereof, belief that they were true, and that he made the purchase in question and gave the notes and deeds therefor, appear in the pleadings. The complaint further sets forth that, at the time of the sale, plaintiff had no experience in, or knowledge of, patent rights, or patent applications, or the procedure thereunder, but later he discovered that the defendant had no patentable idea for a sign gate, that no patent could be issued on [416]*416his application, and that “patent pending” did not prevent other persons manufacturing and installing the sign gate covered by the defendant’s application. Before the defendant’s answer was filed, the patent applied for was issued to defendant by the Commissioner of Patents, as the answer avers and the supporting evidence shows.

The issuance of the patent eliminated from the case the questions as to the patentability of the idea, the issue of the patent and defendant’s ownership, and left in the complaint as the only charge of fraud, the defendant’s alleged representation that the pendency of a patent application operated as a protection against the use by others of the invention. In the opinion of the trial court, however, which is brought up. in the record, there is a statement that the defendant falsely represented to the plaintiff that the patent was “a protection as against any one attempting to use and vend a sign gate,” whereas, as the court proceeded to say: “the patent is no protection against any one using signs of every kind and description upon all sorts of gates, but is only a patent as to the manner of hanging a sign on a gate.”

Even if the complaint contained any such charge, as it does not, there is no evidence that would justify such a finding. Plaintiff, who was in the advertising, business and knew the value of similar signs, admits that, before the sale, defendant showed him a model, or sample, of the sign gate which is a duplicate of that which is exhibited in the application and contained in the letters patent. So that the plaintiff must have known as well as the defendant did, what the improvement on sign gates was concerning which the patent would protect the owner. The only allegation in the complaint bearing on the protection afforded by the pendency of a patent application, is that it prevents infringement of the idea embodied in the invention, not that other persons may not use any sort of sign or any kind of gate. So we repeat that the only charge defendant was required, in the pleadings, to meet was, that he had misrepresented the potency of a mere application [417]*417for a patent as prohibiting the use by others of the invention before the issuance of letters patent.

We think the decree is wrong on the undisputed facts. The general rule is that equity will not relieve one against a mistake of law, or convert a mere expression of opinion on a legal question into a representation of a past, or of an existing, fact. That the trial court misconceived the case as made by the pleadings and the evidence, and applied to it an erroneous principle of law, is apparent from these expressions in the court’s opinion. Referring to the contentions of defendant, the court said:

“There is little or no contradiction in the testimony, the defendant contending that he believed that a ‘patent pending’ was a complete protection, supposed it was at all times, and that if it be the law that the same is not, he was misinformed, and that his statement to the plaintiff as to that' feature was an honest mistake. Counsel for the defendant also makes the contention that a mistake of law is not actionable, and that the plaintiff is not entitled to recover in this action upon misrepresentations of the defendant as to what the law was relative to the protection given by ‘patent pending.’ Counsel also contends that if there is any ground for rescission shown by the evidence it would be upon a mutual mistake as to what the law is, and that a mutual mistake cannot be the basis for a rescission in an action brought for rescission upon the ground of false representations or fraud.
The Court, however, is of the opinion that the positive representation of a fact by a person who does not know the statement to be true, and has no good reason to believe it to be true, if in fact it be false, is in law a wilful representation, and amounts to such fraud in law as will entitle the one defrauded, who relies upon the said statement innocently, to a rescission of the contract.
The Court is further of the opinion that while it is the general rule that equity will not relieve a person against a mistake of law, yet where a mistake of law is induced by fraudulent misrepresentations, and the person making [418]*418the representations reaps the reward by reason of his misrepresentations even a mistake of law so induced is sufficient ground for the rescission of a contract.”

The foregoing discloses not only the issues tried but/also the ground upon which the court made its decision. While it is immaterial what reason the court assigns for its judgment, it will not be set aside, if, for any reason, it is sustained by the law and the evidence. The decree in this case, however, cannot be upheld, unless it is for the reasons stated by the court in its opinion. Conceding that the law is, as stated by the court, where the pertinent facts are present, still if the pertinent facts are not in this record, to which to apply the law announced, the decree should be set aside.

First, we observe that the rule of law invoked by the court, that where a mistake of law is induced by a fraudulent representation it is actionable, it is so, if at all, only if the representation is of a fact, not of law. There is not a scintilla of evidence that the defendant in this case stated any fact or facts upon which he based his statement that the pendency of a patent application protected against infringement.

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Bluebook (online)
211 P. 638, 72 Colo. 414, 1922 Colo. LEXIS 569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parks-v-bucy-colo-1922.