Rutherford v. Williams

42 Mo. 18
CourtSupreme Court of Missouri
DecidedOctober 15, 1867
StatusPublished
Cited by20 cases

This text of 42 Mo. 18 (Rutherford v. Williams) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rutherford v. Williams, 42 Mo. 18 (Mo. 1867).

Opinion

Holmes, Judge,

delivered the opinion of the court.

The petition states in substance that the plaintiff, on the 26th day of March, 1860, obtained a loan of money from the defendant, and secured the same by a principal note for the sum of five thousand five hundred dollars, payable at three years from date, with separate notes for the semi-annual interest, together with a deed of trust on his farm, of the value, as alleged, of twenty-five thousand dollars, containing a power to sell on failure of pay[22]*22ment; that usurious interest was retained by the defendant out of the sum loaned; that some two years afterward, the interest notes then due not having been paid, and the land being liable, according to the terms of the deed, to be advertised and sold, under the power, to pay the whole indebtedness, the plaintiff had several interviews with the defendant, and informed him of his desire to go overland to California, where he expected to borrow the money necessary to pay the debt from one James L. Jennings, and proposed to go, provided that the defendant would suspend all proceedings for a sale under the deed of trust until he should return, as he expected, in about five months, and that the defendant promised to do so; that the plaintiff, relying upon the promise and good faith of the defendant, departed for California, leaving his family on the place, with a man to take care of the farm; that only some ten days after he was gone, the defendant, in pursuance of a fraudulent intent and design to deceive and entrap him, to his injury, and to obtain the property at a reduced price by a sale under the deed in his absence, caused the trustee to advertise and sell the property, and became himself the purchaser, for the sum of five hundred dollars, on the 22d day of May, 1862; and that, on the 9th day of September, 1863, the defendant sold and conveyed the same, for the sum of ten thousand five hundred dollars, to a bona fide purchaser, without notice of any fraud in the sale or of any equity affecting the title. There were allegations, also, of fraudulent conduct and unfairness at the sale, on the part of the defendant, with a purpose of deterring bidders, and in continuation of the preconceived design to defraud, by holding out the idea that he was buying in the property for the benefit of the plaintiff or his family. The prayer was that the defendant might be charged in account with the sum of twenty-five thousand dollars (the value of the farm), together with rent from the day of sale, and be credited with four thousand aiifl six dollars, and ten per cent, interest from the date of the notes, and that the defendant be adjudged to pay the plaintiff the sum found due upon such accounting.

The defendant demurred to the petition, for the reason that it did not state facts sufficient to constitute a cause of action. The demurrer being overruled, an answer was filed substantially [23]*23denying all fraud and deceit, and traversing the main facts on which the plaintiff claimed to be entitled to relief. Motions for a new trial and in arrest of judgment were made and overruled.

The case was submitted to the court, sitting as a jury, for a trial of the issues, and judgment was rendered for the plaintiff, upon a spe'cial finding of the facts, stating therein the amount charged, for the value of the farm, at $15,000, and the credits allowed for debt and interest; and execution was awarded against the defendant for the balance of $8,087.15.

The petition is certainly not very explicit as to the principles of law or equity on which tlio action was to be founded, nor very accurate as to the kind of relief to which the plaintiff might be entitled. Evidently it was not intended to state a cause of action at law for damages, whether founded upon a breach of contract or upon fraud and deceit resulting in damages merely. It states a case of equitable jurisdiction, if anything; yet the relief prayed for is not exactly such as a court of equity would grant upon the case stated. It is not easy to say whether the case was tried in the court below as an action at law or as a proceeding in equity; but the relief given was not such as equity could grant. It has been argued here as if it might be either or both. The record exhibits such a blending of law and equity, both as to principles and procedure, that we have had great difficulty in determining what to make of the case. This court has had occasion already, in several cases, to animadvert upon the error of confounding law and equity, not only as to principles, but as to the mode of proceeding, as if no distinction any longer existed.

We are inclined to think the demurrer was properly overruled. The petition could not be treated as an action at law. Whether or no it sufficiently states a case for equitable relief, is a question of some difficulty. It has been held, under the practice act, that the relief sought is an essential part of the petition. It is, at least, not clear that the prayer in this case might not include such relief as could possibly be granted on the case made. As to the case stated in the petition (which is taken to be entirely true on demurrer), our opinion is that it might come within the jurisdiction of a court of equity for granting relief under the head of [24]*24fraud, if a clear case of fraud and deception, as alleged, were proved to the entire .satisfaction of the court, or were established by the verdict of a jury—the material facts on which the fraud depends being doubtful upon the evidence.

It has been said by high authority to be a principle of universal law that fraud and damage coupled together will entitle the injured party to relief in any court of justice — Bacon v. Bronson, 7 Johns. Ch. R. 194. At law, fraud without damage, or damage without fraud, will not found an action; but where both concur an action will lie—Pasly v. Freeman, Sm. Lead. C. 55, § 2. There can be no doubt that wherever fraud and deceit resulting in damage can be proved to the satisfaction of the jury, an action at law can be maintained. The cases are numerous to the effect that where a person affirms either what he knows to be false, or what he does not know to be true, to the prejudice of another and for his own gain, he must answer in damages; but independently of any contract no one can be made responsible for representations of this kind unless they be fraudulently made — Taylor v. Ashton, 11 Mees. & W. 400; Stone v. Denny, 4 Met. 151; Allen v. Addington, 7 Wend. 9; 2 Kent’s Com. 489, n. b.)

But general fraudulent conduct, general dishonesty of purpose, or a mere general intention to deceive, amount to nothing unless they are connected with the particular transaction, and are shown to be the very ground on which the other party acted, and on which the transaction took place; and he must have been actually deceived and defrauded by the representations made — Atwood v. Small, 6 Cl. & Fin. 447. He is himself alone responsible for his own weakness, folly, inattention, want of caution, or imprudence, and for his own necessities and misfortunes. Nor Gan damages be recovered for the breach of a mere gratuitous promise of favor, or for the consequences of undue confidence or want of prudence in affairs, or for oppressive conduct in foreclosing a mortgage under a power of sale where the requirements of the contract have been pursued; and the damage resulting from the fraud or misconduct must be the direct and immediate consequence of the wrongful act—Randall v. Hazelton, 12 Allen, 412.

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Bluebook (online)
42 Mo. 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rutherford-v-williams-mo-1867.