Rose v. Owen

85 N.E. 129, 42 Ind. App. 137, 1908 Ind. App. LEXIS 23
CourtIndiana Court of Appeals
DecidedJune 23, 1908
DocketNo. 5,992
StatusPublished
Cited by11 cases

This text of 85 N.E. 129 (Rose v. Owen) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rose v. Owen, 85 N.E. 129, 42 Ind. App. 137, 1908 Ind. App. LEXIS 23 (Ind. Ct. App. 1908).

Opinion

Watson, J.

Appellant sued appellee for money alleged to be due by the terms of a certain contract entered into between them. Appellee filed a so-called counterclaim against appellant, averring that the contract sued upon was obtained by threats, and asking that the instalments sued for be declared void and the contract canceled. The appellant’s complaint was then dismissed, and'the case tried on the issues made, on the counterclaim. At the request of both parties the court made a special finding of facts, and stated conclusions of law thereon. A decree was entered for the appellee, and said contract canceled. The counterclaim was in three paragraphs. Appellant’s motions that each be made more specific were overruled. The appellant then demurred separately - to each paragraph, which demurrers were overruled.

The errors assigned are: (1) The overruling of the demurrers to each paragraph; (2) the overruling of the motions to make each paragraph more specific; (3) the overruling of the motion for a new trial.

[139]*1391. Appellant has not discussed in his brief the alleged errors in overruling the motions to make more specific, therefore such assignments are deemed to be waived. Flickner v. Lambert (1905), 36 Ind. App. 524; Unger v. Mellinger (1906), 37 Ind. App. 639; Rudisell v. Jennings (1906), 38 Ind. App. 403.

It is alleged, in substance, in the first paragraph of the counterclaim, that appellee owned 5,000 acres of land in Mexico; that he entered into a contract (made part of the complaint by exhibit) with appellant to sell said land on commission; that before any sales were made said contract was canceled; that thereafter, to wit, on April 9, 1898, Owen and' others organized under the laws of Indiana a corporation known as the Mexican Coffee & Rubber Company, and said lands were sold to such corporation; that on June 7, 1899, another corporation was organized under the laws of Indiana by Owen and others, known as the Ubero Plantation Company, which latter corporation purchased 1,000 acres of land from said Mexican Coffee & Rubber Company; that Owen was president and a director of said plantation company, owned and controlled a majority of the stock, was financially interested therein to the amount of $100,000, had interested capitalists in said plantation company, and was placing the stock thereof on the market, which stock was finding ready sale, all of which appellant knew; that, for the purpose of compelling appellee to pay him money, appellant became the owner of one share of stock, and by his attorney prepared a petition asking the appointment of a receivei for the Ubero Plantation Company; that said petition was shown to Owen and a certain other stockholder, and the threat made that unless Owen paid, or provided for the payment of, $35,000 said proceeding would be instituted; that said threat was made to other stockholders, knowledge of which came to appellee before the contract sued upon was made; that appellee offered to go to trial at once on the question of any debt due [140]*140appellant, but the latter refused; that the institution of the receivership suit would have been as harmful to Owen and his associates as though it were founded on merit; that Rose knew that said plantation company had been recently' organized, and that the mere filing of a, suit for a receiver would embarrass the corporation and frighten stockholders from completing payment for their stock, and said acts were part of the scheme to extort money from appellee ; that Rose and his attorney made like threats to persons who would carry the same to appellee, and further asserted that the moneys of said plantation company were not being used in the development of the property, but in paying large salaries, principally to appellee, which was false, as Rose knew; that no salaries have been paid to appellee or any other officer of said company, and that said statements were made wilfully, knowing them to be false; that Rose knew that he had no legal or equitable cause of action to procure the appointment of a receiver; that appellee, believing that appellant would execute his threats, and knowing that a receiver could be appointed without notice either to said company or to Owen, and knowing and believing that such an appointment would ruin said company and cause Owen to lose a large sum of money, executed said contract on account of said threats.

The second paragraph sets out the same facts as the first.

The third paragraph, by exhibit, sets out in full the first contract entered into by Rose and Owen, and alleges substantially these additional facts: that both parties contemplated that the land should be sold in small tracts, not in bulk; that, for the purpose of claiming the entire commission, Rose induced Owen to organize a corporation to which the land should be conveyed; that Rose promised not to claim that the commission had accrued under the contract, but promised that said contract would be canceled and a new contract made with such corporation; that appellant asserted that said contract had never been can[141]*141celed, and claimed $35,000 as commission on the sale of said land to the Mexican Coffee & Rubber Company; that appellant had exhibited a forged letter purporting to have been executed by appellee, to the effect that said contract was still in force.

The prayer of each paragraph is that the instalment sued on be declared void.

Appellant’s brief is far from being a model. The concise statement of the record consists of a statement thereof in its entirety. There is no discussion separate from the points and authorities, but only a conglomerate mass of statements of law, citations of authorities and fragmentary arguments.

2. It is conceded, as a fundamental proposition of law, that a contract obtained by duress is voidable. This is so for the reason that in such a case there is absent one of the essential requisites of a valid contract; i. e., the free consent of each party thereto, or, in other words, a meeting of the minds.

3. The question in this case is whether there can be duress by threats such as are alleged in the counterclaim. In Bush v. Brown (1875), 49 Ind. 573, 577, the court said: “To give validity to a contract, the law requires the free assent of the party who is to become chargeable thereon, and it therefore avoids any promise extorted from him by terror or violence, whether on the part of the person to whom the promise or obligation is made, or on that of his agent. Contracts made under such circumstances are said to be made under duress.” In Parmentier v. Pater (1885), 13 Ore. 121, 126, 9 Pac. 59, it is said: “Any course calculated to excite alarm, which is resorted to by one party in order to coerce another to do an act detrimental to his rights, and advantageous to the former, is unlawful; and I do not think the law should make any distinction between means that are adopted in order to secure such ends.” Where the threats actually [142]*142coerce and may reasonably be held to coerce the will of the party threatened, and the contract results from such coercion, there is duress. Baldwin v. Hutchison (1893), 8 Ind. App. 454; Adams v. Stringer (1881), 78 Ind. 175; Hines v. Board, etc. (1884), 93 Ind. 266; Cribbs v. Sowle (1891), 87 Mich. 340, 347, 49 N. W. 587, 24 Am. St. 166.

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Cite This Page — Counsel Stack

Bluebook (online)
85 N.E. 129, 42 Ind. App. 137, 1908 Ind. App. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-owen-indctapp-1908.