Sams v. Barnes

82 S.E. 124, 74 W. Va. 420, 1914 W. Va. LEXIS 140
CourtWest Virginia Supreme Court
DecidedMay 19, 1914
StatusPublished
Cited by1 cases

This text of 82 S.E. 124 (Sams v. Barnes) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sams v. Barnes, 82 S.E. 124, 74 W. Va. 420, 1914 W. Va. LEXIS 140 (W. Va. 1914).

Opinion

Miller, President:

In assumpsit, to recover the price of two hundred and fifty shares of Mary Mining Company stock, par value one dollar per share, plaintiff recovered a judgment upon the verdict of the jury for six hundred and seventy-eight dollars and two cents with interest and costs.

[421]*421Defendant now seeks reversal of that judgment upon grounds pleaded and relied on in defense, and for alleged errors committed on the trial.

Besides non-assumpsit, defendant pleaded and relied on alleged false and fraudulent representations by plaintiff in the procurement of the contract, discovered by defendant afterwards, but before presentation and payment of his cheek for three hundred dollars given in part payment, and on account of which he stopped payment, and declined to accept the stock of complete the contract.

These alleged false and fraudulent representations related to the quantity of gold ore of rich quality represented to be in the ore house of the Mining Company on the premises; the daily output of ore and its value; the ore mill on the premises and the amount of ore treated and handled daily; the daily income of the Mining Company therefrom; the fact that the company had purchased a second mill, which would double the output and swell the income accordingly; that there was no stock for sale at any price, but plaintiff thought he could get defendant some at two dollars and fifty cents per share, all of , which representations it is alleged were untrue, and that plaintiff knew them to be false at the time, but of which defendant was ignorant.

The evidence is conflicting as to whether said representations, except the last, were made as alleged, and as to whether those made were not simply that plaintiff had been so toid or informed by literature or prospectuses furnished him, or given as his opinion, or were stated by him as facts so as to mislead and deceive defendant, and defraud him out of his money.

Plaintiff also relied on evidence tending to show defendant had investigated for himself, and did not rely on representations made by plaintiff. The evidence on this subject seems to be that defendant’s investigations were limited to inquiries of one or two persons to whom plaintiff had referred him, one of whom was interested in the sale of the stock to defendant, indeed he was the one from whom plaintiff claims to have purchased the stock. Defendant had not received answers to letters written to other persons, particularly the president of the company, until after he had contracted with plaintiff, and [422]*422these did not, as he proved, verify the alleged representations of plaintiff.

Defendant also shows by his evidence, that after making said contract, and after receiving information of the president of the company, and making inquiries of persons, other than those to whom he had been referred by plaintiff, who knew the facts, he found those made by plaintiff and his friends were false.

As to the last of said representations, however, namely, that there was no stock for sale at any price, but plaintiff thought he could get defendant some at two dollars and fifty cents per share, we find no real conflict, and we deem this one most material. Defendant relies also on the fact of plaintiff’s agency to acquire the stock, and that in any event, he would not be allowed to recover in excess of the price paid by him for this stock, as proved, seventy-five cents per share, and not two dollars and fifty cents per share, or two and a half times its par value.

Plaintiff, a wholesale grocer’s salesman, admits that on the occasion of one or more of his regular calls on defendant, a retail grocer, and in talking casually with him about this Mining Company and the stock be held in it, and his judgment of the value of the stock, that he told him he would not take two dollars and fifty cents per share for his stock, and that he knew of no stock for sale; that on these occasions he painted a very rosy picture of the value of the stock and of the prospects of the Mining Company, based, of course, on what he claims to have heard. He admits, however, that on the occasion of his visit immediately before his alleged sale to defendant, that he told him he had struck a fellow he could buy some stock of and said to defendant, “I can tell you where you can get 250 shares of Mary Mining Company stock”, and that defendant said, “You give me what informa-' tion you can give that will be of benefit to me.” At another place in attempting to repeat what he told defendant he says: “And later on I struck a fellow I could get some off of, and the next time I seen him I told him I could get him 250 shares of the mining stock at $2.50 share”, and that defendant replied, “let me have a little time to consider the matter.”

Defendant swears that plaintiff’s representations of the [423]*423conditions and prospects above set forth were positive, and not on information, nor as matters of opinion; and as to the one material fact specially relied on in defense defendant says, among other things, that plaintiff represented to him that he believed he could get him some of that stock at two dollars and fifty cents per share; that he replied, that Im thought that was an awful price to- pay; that plaintiff replied that it was worth it.

Nowhere does plaintiff pretend that he represented to defendant that he was dealing in this stock, or was proposing to buy and sell this stock to defendant at a large profit; his evidence was that he had found a man.from whom he could get two hundred and fifty shares for defendant at two dollars and fifty cents per share. Defendant swears plaintiff was proposing to get this stock for him as a friend from a man he had found that would sell at that price, and plaintiff’s evidence and his admissions all go to show such was the impression he intended to make upon defendant’s mind. Defendant could have gotten no other impression from his admitted statements.

The fact was, however, that other stock had been sold in the same market or locality at from twenty-five to fifty cents per share. And plaintiff admits that he paid but seventy-five cents per share for the stock he undertook to unload on defendant, when the highest price proven to have been paid, by anybody before that was sixty cents per share.

"We have detailed this much of the evidence upon this important fact because of the want of material conflict therein, and because in our opinion it is decisive of the question of fraud, controlling our decision, of the case. Moreover, it is questionable whether the position of plaintiff was not- that of agent for defendant in the purchase of the stock. But the fact that he falsely represented to defendant that he had struck a man from whom he could get two hundred and fifty shares at two dollars and fifty cents a share, when the fact was that he could and afterwards did buy them, according to his own admissions, at seventy-five cents per share, is sufficient in our opinion to vitiate the whole contract, voiding it, and that plaintiff is not entitled to recover from the defend[424]*424ant anything on account of the contract. This conclusion renders it unnecessary to consider the other defenses depending to some extent on conflicting evidence.

Our conclusion, therefore, is that defendant’s motion to set aside the verdict and award him a new trial should have prevailed upon the ground of fraud in the procurement of the contract, conclusively proven. Our decisions say: “Fraud in the procurement of a contract avoids it;

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13 S.E.2d 578 (West Virginia Supreme Court, 1941)

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Bluebook (online)
82 S.E. 124, 74 W. Va. 420, 1914 W. Va. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sams-v-barnes-wva-1914.