Rodee v. Seaman

145 N.W. 441, 33 S.D. 184, 1914 S.D. LEXIS 14
CourtSouth Dakota Supreme Court
DecidedFebruary 14, 1914
StatusPublished
Cited by6 cases

This text of 145 N.W. 441 (Rodee v. Seaman) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodee v. Seaman, 145 N.W. 441, 33 S.D. 184, 1914 S.D. LEXIS 14 (S.D. 1914).

Opinions

WHITING, J.

From .the complaint herein it -was alleged: That -plaintiffs .and defendant entered into a written contract whereby plaintiffs agreed to trade to defendant an undivided half interest in and to a large tract of agricultural lands situate in Sanborn county, S. D., for three residence properties owned 'by defendant and situate in the city of Mitchell, S. D.; that, at the time of such contract, plaintiffs were farmers residing on the tract of land they were agreeing to- trade and- were unacquainted with the character, value, condition, and use and income of the defendant’s .property, except as they were advised in relation thereto by defendant; that -defendant was an experience dealer in real estate and well acquainted -with the 'character, value, condition, and use and- income of said property, and with the value of plaintiff’s said property, as well as of other properties of the same kinds in the counties where these .properties- were situate; that plaintiff’s property was worth. $55,000 and -was subject to a mortgage incumbrance of $15,000; that defendant’s property was not worth to- exceed $12,000, as was well known by -defendant but unknown to plaintiffs; .that, .prior -to entering into such contract for exchange, the defendant, well knowing all the -above facts, and for the purpose of defrauding -plaintiffs, knowingly stated and misrepresented to them that his said property w-as worth $19,000, an-d misre-piesen-ted the amount for which each of such residence properties was then renting, ais well as -the annual taxes against and income from said property; that the falsity of all these representations was then well known to defendant; that the said representations so made to plaintiffs by defendant were believed and- relied upon by plaintiffs ; that the defendant knew that -plaintiffs were ignorant of the falsity of his said representations and knew that they relied upon them; that plaintiffs, relying upon said representations, were induced thereby to make and enter into said- -contract; that thereafter plaintiffs executed and delivered to -defendant -deeds in accordance with said contract, conveying an- undivided- one-half interest ■in and to their property, and delivered- -possession thereof to- him, and received from him conveyances of said Mitchell property; hat by reason of such false and fraudulent statements and representations, -plaintiffs sustained dam-ages- in the sum- of $7,000, no part [189]*189of which has been paid. Plaintiffs asked judgment for said $7,000 with interest. To this complaint defendant interposed an answer. When the cause was called for trial, defendant objected to any evidence being received under such complaint, contending that it did1 not allege facts sufficient to constitute a cause of action. This objection was; sustained. Plaintiffs did not seek to amend their complaint, and it was dismissed and judgment entered for defendant. Plaintiffs appealed, and the sole question presented to this -court is the correctness of the ab-o-ve rilling excluding evidence.

[1] Appellants contend that in construing the sufficiency of a complaint, where objection thereto- is first made upon the offer of evidence thereunder, courts should Ibe -more liberal in sustaining such complaint than upon a demurrer. Respondent contends that the above rule “can only be invoked where such -an objection has been overruled, and the actio-n tried upon its merits, and the imperfections of the pleading cured- by proper pro o-f.” We are unable to harmonize the views of this court as -we find them announced in the cases of Whitbeck v. Sees, 10 S. D. 417, 73 N. W. 915, and Bon Homme County v. McLouth, 19 S. D. 555, 104 N. W. 256. In each -of these cases -after issue joined by answer, the trial -court, as in the case no-w before us, -sustained an objection -to introduction -of evidence, when such objection was 'based upon the ground that the complaint did not state facts sufficient to constitute a cause o-f action. In the earlier case, exactly as in the case at bar, after the trial -court had- sustained the objection to any evidence under the complaint, the plaintiff declined to amend the complaint. This court reversed such ruling and, in- -so doing, said: “Construed liberally, as it must be after issue is joined by ■answer -upon the merits, o-ur conclusion is that every -essential ingredient of a cause of action -can be fairly gathered from the averments of the complaint, and that the objection to the introduction of any evidence thereunder, because facts sufficient to -constitute a cause of acti-o-n were not alleged should- have been overruled. Robbins v. Barton, 50 Kan, 120, 31 Pac. 686; Moore v. Shields, 121 Ind. 267, 23 N. E. 89; Hazelton v. Bank, 32 Wis. 34. It is the settled practice in this jurisdiction to- indulge the greatest latitude to sustain -a co-m-plaint assailed for the first time at the trial by an objection to the introduction of' any -evidence on the ground thar [190]*190facts sufficient to constitute a cause of action are not stated. Stutsman Co. v. Mansfield, 5 Dak. 78, 37 N. W. 304; Johnson v. Burnside, 3 S. D. 230, 52 N. W. 1057; Sherwood v. City of Sioux Falls, 10 S. D. 405, 73 N. W. 913.” In the later case in sustaining the ruling of the trial count, this court said: “Plaintiff’s contention that the complaint should be most liberally construed, because it was first attacked by an objection to- the introduction of any evidence, is not tenable. That rule can only be invoked -where such an objection has been overruled, the action tried upon its merits, and the imperfections of the pleading -cured by' proper proof.” W-e are of the opinion that this court was right in the earlier case, -and- that the trial -court, in the case at bar, should have indulged in the greatest latitude to sustain the complaint herein; furthermore, even treating the obj ection to- the evidence as a demurrer to the -complaint, such -complaint should have -been construed “to- allege all the facts that can be -implied by fair and reasonable intendment from the fact expressly -stated.” Dunlap v. C. M. & St. P. Ry. Co., 144 N. W. 226.

[2] The chief controversy herein centers upon the question of whether or not the representation by defendant as to- the value of his property can be the .basis of an action, for deceit. What can be gathered from the express averments of this complaint and 'from all “that can be implied by fair and- reasonable intendment from the facts- expressly stated,” when w-e indulge that latitude that -should -have been- indulged by the trial court? On-e p-ar-ty is an- expert, one fully advised as to the value of both the -city and rural properties and known to the others to- -be so -advised; -he kno-ws the others are ignorant as to- .the value of his property ; he knows they are relying upon -hi-s knowledge as to such value and will receive his- representation -as to the value of such -property as the representation of -a fact, to-wit, the real value- of the property- — in -other words he kno-ws that they are not dealing with him on equal -terms. Knowing this, and with full knowledge of the unfairness of the proposed trade, he, for the purpose of defrauding them, gives, to them-, not his opinion, not the fac-t which as an -expert he knows, b-ut he gives to them- a representation as to suc-h fa-ct, the value of the property, which representation he knows to be false.

The courts', recognizing the 'well-known pronene-ss of man to [191]*191look, as though through magnifying glasses, upon that which, is his own, universally hold that ordinarily a false representation -by one as to the value of his property cannot form the basis of an action for deceit.

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Cite This Page — Counsel Stack

Bluebook (online)
145 N.W. 441, 33 S.D. 184, 1914 S.D. LEXIS 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodee-v-seaman-sd-1914.