Samuel Feinberg and Ann Feinberg v. William E. Leach, D/B/A Dickey Stables

243 F.2d 64, 1957 U.S. App. LEXIS 2894
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 27, 1957
Docket16286
StatusPublished
Cited by13 cases

This text of 243 F.2d 64 (Samuel Feinberg and Ann Feinberg v. William E. Leach, D/B/A Dickey Stables) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samuel Feinberg and Ann Feinberg v. William E. Leach, D/B/A Dickey Stables, 243 F.2d 64, 1957 U.S. App. LEXIS 2894 (5th Cir. 1957).

Opinion

TUTTLE, Circuit Judge.

This is an appeal from an order dismissing, with prejudice, appellants’ “Second Amended Complaint,” in which they pleaded substantially as follows:

During the spring of 1952 the appellant, Samuel Feinberg, was the victim of two heart attacks which confined him to his bed and also of cataracts on both eyes which prevented him from reading. In that condition he became very much concerned about the disposition of three registered thoroughbred brood mares that he owned jointly with his wife, appellant Ann Feinberg, and consequently entered into negotiations for their sale to the appellee, Leach, who was then the owner of the Dickey Stables which were known by appellants to provide excellent care for horses. On May 14, 1952, Leach visited Samuel Feinberg with a written agreement drawn by himself, a copy of which is annexed to the complaint, which provided in substance as follows: appellants would sell and transfer their mares to Leach immediately, in consideration for which Leach *66 promised to deliver to them the third foal of each mare by a stallion owned and/or controlled by Leach, on the first day of January following the date of the foaling; Leach assumed no responsibility for the death, destruction, or disability of any of the animals before his part of the contract was fulfilled. 1 Leach read this agreement to Samuel Feinberg who then stated that he was not in a physical condition to express himself adequately but that he wished to keep the document overnight and to receive further clarification of certain parts of it; Leach, however, stated that since the period for breeding was fast expiring the contract would have to be signed immediately and that with reference to the questioned provisions Leach promised that he himself would personally care for the mares (though the written agreement did not provide so), that nothing would be done without Feinberg’s consent, and that he personally would assume responsibility for the death, disability, or destruction of the animals (though the agreement expressly provided otherwise). Thereupon Samuel Feinberg executed the agreement and caused his wife to do so, though “at the time of executing said agreement, said Samuel Feinberg was not in physical condition to comprehend and understand the nature and implications of said agreement and relied upon the statements of Leach as to the meaning of the terms of said agreement as hereinabove set forth.” Until January 1956 Leach lived up to the terms of the agreement, as had been “construed” by him, personally caring for the horses and giving notice of the dropping of two of the “third” foals. However, at that time Leach sold the Dickey Stables to a syndicate without notice to or the consent of the appellants, withdrew from the personal care and management of the horses, and when the last foal promised to the appellants was dropped he did not notify them as had been his custom.

It was further alleged that when the second “third” foal was a week old Leach purchased the animal from the Feinbergs for $25,000, acting through a dummy, in violation of his “fiduciary relationship” to appellants. Altogether appellants had $50,000 invested in the three mares at the time of the sale, for which up to the time of the complaint they had received only one foal plus $25,000 for another (plus a third one expected, which, however, would not have received appellee’s valuable care), while they understood that Leach had profited to the extent of nearly $500,000. Leach thus had taken advantage of Samuel Feinberg’s physical condition and the alleged necessity of speed to secure the execution of a contract so inequitable as to shock the conscience of the court.

Plaintiffs therefore prayed for rescission of the contract, whereby the mares or their subsequent sales price would be returned to appellants and Leach would be compensated for his expenses, or, in the alternative, that the written agreement be reformed to conform to the above oral understanding and that appellants recover damages for the breach of said agreement as reformed.

This is the third complaint that has been filed by appellants in this case, each premised on roughly the above facts but claiming different relief based on a different theory of recovery. The first two complaints were dismissed without *67 prejudice and with leave to amend. With his motion to dismiss the original complaint, appellee submitted an affidavit in which he stated that he had not sold or offered for sale the third mare (whose third foal had not yet been dropped), that he had never personally handled racehorses but had always done so through competent employees, that he had made arrangements with the purchasers of the stables, who are responsible and reliable business men, to care for the mare and its expected foal at his expense and with his employees until it was delivered to appellants, and that he had never made any agreement with appellants to care for the mares or their foals at any particular farm. In his argument before this Court appellee’s attorney asserted that this affidavit had been considered by the district court in dismissing the final complaint with prejudice, though the order itself does not reflect this; appellants’ attorney, though notified of the pending motion to dismiss, did not appear for its disposition.

At the time of the argument of this appeal, appellee filed a suggestion of mootness with this Court, on the ground that with the receipted delivery of the last foal to the appellants on December 31, 1956, the contract had been fully performed.

Considering the issue of mootness first, we hold that this appeal should not be dismissed, since appellants do not attempt to assert a cause of action on the written contract whose terms have now been fully performed, but rather they would have that contract rescinded, or reformed and enforced in its altered state.

However, we are unable to agree with appellants that their complaint, considered with every intendment regarded in their favor, states a “claim showing that the pleader is entitled to relief,” as required by Rule 8(a) (2), Fed.Rules Civ.Proc. 28 U.S.C.A. (and also required to resist a motion to dismiss under Rule 12(b) (6)), even if the pleadings are construed so “as to do substantial justice” as is enjoined on the courts by Rule 8(f). In substance this appears to be no more than a transparent attempt to evade the requirements of the parole evidence rule prohibiting the variation of the unambiguous terms of a written contract by evidence of a contemporaneous oral understanding, even if such an attempt is made under the guise of an equitable action to rescind or reform the written agreement. See 20 Am.Jur., Evidence §§ 1099, 1104. The fact that appellee’s acts for some two years subsequent to the execution of the written contract were not inconsistent with the alleged additional oral understanding (or with the written terms either) cannot aid appellants’ case.

Rescission or reformation here cannot be based on fraud for there is no claim that Samuel Feinberg was misled as to the actual words and terms of the agreement he executed, even though he himself could not read them, or even that Leach misled him as to his existing intentions at the time of the agreement or as to the actual need for speed in closing the transaction. See 5 Fla.Jur., Cancellation, Reformation, and Rescission of Instruments, § 23, and 45 Am. Jur., Reformation of Instruments, § 50.

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Bluebook (online)
243 F.2d 64, 1957 U.S. App. LEXIS 2894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuel-feinberg-and-ann-feinberg-v-william-e-leach-dba-dickey-stables-ca5-1957.