Rhoda v. Annis

75 Me. 17, 1883 Me. LEXIS 76
CourtSupreme Judicial Court of Maine
DecidedFebruary 16, 1883
StatusPublished
Cited by14 cases

This text of 75 Me. 17 (Rhoda v. Annis) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rhoda v. Annis, 75 Me. 17, 1883 Me. LEXIS 76 (Me. 1883).

Opinion

DaNKORTH, J.

This is an action to recover damages for deceit in the sale of a farm. The representations complained of were made by the defendant’s son acting in her behalf. The jury were .instructed that the "defendant was responsible for all the acts and representations of her agent in making the sale.” This instruction does not make her responsible for the acts or representations <of any person who was not her agent, or for such as were not [23]*23made in furtherance of the sale, or to accomplish that end. These things were first to be found by the jury under proper instructions as to the law. We must then assume that the son had authority as agent for his mother to make a sale of the farm, that the representations so far as they were submitted to the jury were made by him as a part of the negotiation for the purpose of bringing about the sale, that by means of them it was brought about, the conveyance was made, and that the defendant received the proceeds of the sale. In fact, all these things are conceded. The verdict affirms the fraudulent character of the representations, and that in making them the agent acted within the scope of his authority. This would seem to bring the case within the well established law, that the principal is responsible for such acts of his agent as are done within the scope of his authority, whether authorized or not, except by the general authority, to do the principal act.

In fact, this principle of law is conceded in this ease, hut it is denied that the defendant is liable in this form of action. It is said that being personally innocent of the fraud, she cannot be convicted of that which has been committed by another with no authority from her, except that which results from his agency. This may he true in a criminal prosecution, but not in a civil action. If she is liable that liability must be ascertained in the proper form of action. Here is no contract of any kind, express or implied, between the parties which can afford any remedy for the injury of which the plaintiff complains. He claims that a wrong, for which the defendant is responsible, has been done ■him. For that wrong he seeks a remedy. What remedy can he have except an action of tort? The counsel says two. He may rescind the contract, and recover back the consideration paid, or in an action for money had and received, recover the profits accruing from the fraud. But neither of these may he adequate to his injury. If he rescinds the contract he may perhaps lose all the consideration paid, and it would be difficult if not impossible to ascertain the amount received on account of the fraud, if that should he held to differ from the amount of damages recoverable in this form of action. But how does this change of [24]*24form relieve the defendant’s feelings or reputation ?' In either case the action is founded upon a fraud, and one which must be proved. In either case it is not her own fraud but that of another for whose doings- she is legally, though perhaps, not morally responsible.

The counsel relies largely, if not entirely, upon the English cases to support his views and some of them do so. But an examination of them will show that they are conflicting, many of them decidedly sustaining the instruction given to the jury in this case. It will, however, be noticed that in the most, if not all of them, the form of the action is not considered material. The object is to limit the extent of the liability to the advantages received from the fraud, applying a somewhat different test to the amount of damages to be recovered. It is unnecessary to refer to these cases in detail. They will be found collected and commented upon in Benjamin on Sales, §• § 462-467 ; Bigelow’s-Leading Cases on Torts, pages- 25-33.

The American cases are more uniform, and sustain the instruction complained of, both as to the form of action and extent of liability. Bigelow on page 23, says: "In America it has generally been held that an action of deceit may be maintained against the principal; but the cases are at variance as to the-ground of liability.” As are the cases, so we find the text books-uniform in sustaining the liability of the principal in actions of tort for the wrongful acts of the agent done within the scope of his authority, even though the principal himself is innocent. In a note on page 443 in Benjamin on Sales, it is said : "Where an agent makes a false representation, or in any other manner commits a fraud in a purchase or sale, with or without the privity, or-knowledge, or assent, of his principal, and the principal adopts the bargain and attempts to reap an advantage from- it, he will be held bound by the fraud of the agent, and relief will be given to the other party to the transaction. The principle is that fraud by an agent is fraud by the principal; that the principal should be bound by the fraud or misconduct of his own agent, rather than that another should suffer.” To the same effect are the following- authorities some of which are directly in point,, and alí [25]*25recognize the principle; 1 Chitty on Pleading-, 15 ed. 91; 2 Green. Ev. § 68; 1 Parsons on Contracts, 73; Kerr on Fraud and Mistake, 111-112; Story on .Agency, § § 308, 452 ; Locke v. Stearns, 1 Met. 560; White v. Sawyer, 16 Gray, 586; Howe v. Newmarch, 12 Allen, 49; P. & R. R. Co. v. Derby, 14 Howard, 468-486; Pratt v. Bunker, 45 Maine, 569; Stickney v. Munroe, 44 Maine, 195; Goddard v. G. T. R. 57 Maine, 202. In Holbrook v. Connor, 60 Maine, 578, the misrepresentations were made by an agent, but that fact was not even suggested as a defence, though the action was of the same form as the present. Numerous decisions in other States and in England, to the same effect will be found cited in the text books above referred to.

As ali-eady seen all the cases, both here and in England, hold the principal liable for the fraud of the agent to some extent when he has adopted the contract into which that fraud has entered, and if liable we see no good reason why that liability should not be co-extensive with the injury in accordance with the great weight of authority. If he would avoid this he may, as undoubtedly the law would authorize him to do, repudiate the contract, and restore to the injured party what has been taken from him. But in this case no such offer has been made, but defendant still holding the fruits of what the jury have pronounced a fraud denies any liability on her part.

Out of quite a number of alleged misrepresentations set out in the writ the presiding justice, under instructions to which no exceptions were filed either for omission of any law applicable or erroneous statement of that given, submitted three to the consideration of the jury excluding the remainder. An objection is made to these, that they are too indefinite to be actionable though in other respects accompanied with all the facts necessary to constitute fraud. That which refers to the quantity of hay cut the preceding years comes within the case of Martin v. Jordan, 60 Maine, 531, and is there held sufficient. The words fixing the time during which this quantity was cut, though somewhat indefinite do not make the material fact as to the quantity any less certain; nor is there any doubt that it includes the year-s [26]*26immediately preceding the sale. If no preceding year can bo found in which that quantity was cut, and none appears in this case the falsehood of the statement would seem to be sufficiently apparent.

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Bluebook (online)
75 Me. 17, 1883 Me. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rhoda-v-annis-me-1883.