Saunders v. Wells

112 N.W. 205, 135 Iowa 11
CourtSupreme Court of Iowa
DecidedJune 7, 1907
StatusPublished
Cited by2 cases

This text of 112 N.W. 205 (Saunders v. Wells) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saunders v. Wells, 112 N.W. 205, 135 Iowa 11 (iowa 1907).

Opinion

McClain, J.

The facts about which there is no substantial dispute in the evidence may be sufficiently stated as follows: In the summer of 1902, plaintiff, who was engaged in business in Newton, having formerly owned and for many years lived upon a farm of considerable size in the same county, was solicited by the defendant Wells, who was the agent for the sale of lands in Arkansas, to go to the latter State to look at certain lands, with a view of exchanging property of plaintiffs for land in that State. Wells was a young lawyer, who had on one occasion transacted one item of law business for the plaintiff. About the same time, defendant Morton was similarly solicited by Wells to visit Arkansas for the same purpose, and arranged to make the trip; and plaintiff, partly influenced by the fact that Morton, who was also a merchant in the same town, was going, consented to become one of the party of three, consisting of Wells, Morton, and himself, who went in October to inspect lands held for sale by one Price, as agent. Price met the party in Arkansas, and showed them various tracts of land, and negotiated an exchange of a four hundred and eighty-acre tract to plaintiff for two lots in Newton, valued, with the buildings thereon, at $7,000, certain agricultural implements valued at about $1,000, and the notes of the plaintiff to the amount of about $4,000; the Arkansas land being valued at [13]*13$25 an acre, to 'which was added the commission of $1 per acre, which was to go to Wells. Before the exchange was fully completed by the furnishing of an abstract by Price showing the Arkansas land to be free from incumbrances, plaintiff deeded his lots to Wells, at Price’s direction, and Wells conveyed them to Morton, and Morton conveyed to an innocent purchaser. Subsequently, in February, 1903, Saunders went to Arkansas, without the knowledge of Wells or Morton, and made a new arrangement with Price, by which he reconveyed the Arkansas land for other property, and secured the surrender of his notes; and immediately on his return he commenced this action, asking different relief from that prayed for in his present petition, but making the allegations of fraud and conspiracy substantially in the present form.

The wrongful acts on the part of defendants, which are insisted .upon by plaintiff, include substantially an abuse by the defendants of confidence reposed in them by plaintiff, a conspiracy between defendants and Price, as against plaintiff, to defraud him, by putting an inflated price on the Arkanses land, and a breach of trust, in putting the title to plaintiff’s lots beyond his reach by conveying to an innocent purchaser; and the facts which are relied upon as tending to show injury to the plaintiff are the excessive value at which plaintiff was induced to take the Arkansas land, and the conveyance by Wells, through Morton, to the innocent purchaser, of plaintiff js lots at a valuation greatly exceeding that at which Wells took the lots from Price.

1. Deeds: conspiracy to defraud: evidence. I. As the gravamen of plaintiff’s charges against these defendants is conspiracy, it will be necessary to look into the evidence more fully to see whether such a charge is made out. Conspiracy must often be proven by showing a r d r » ¶ i •° number of independent acts of the different parties charged to have been engaged in it, tending to show a common illegal purpose, and such acts, taken together, may be sufficient, although no one of them in [14]*14itself, without proof of an unlawful combination, would he sufficient to constitute a legal wrong. But, on the other hand, mere coincidence of acts of different parties in some way connected with a transaction resulting in injury to the complainant is not sufficient to establish a conspiracy and render the parties who participate in such transaction liable for the injury resulting to the complainant. We must therefore consider the relations of the parties, and their acts as proven, to see whether a wrongful conspiracy resulting in injury to plaintiff is made out. From the first it was well understood by all the parties that Wells was the representative of Price in endeavoring to secure plaintiff and Morton to go to Arkansas to look at lands, and we are unable to see, therefore, that there was any relation between plaintiff and Wells justifying plaintiff in assuming that Wells would act in plaintiff’s interest, or that Wells would be responsible for any loss which plaintiff might suffer. No misrepresentations on the part of Wells are shown, and we fail to find the slightest evidence of any wrong on Wells’ part, or any fraudulent purpose in the original negotiations. The relations of Wells to the subsequent conveyance of plaintiff’s lots will be considered in a separate division of the opinion.

As to Morton, he was, so far as plaintiff knew or had reason to suppose, a fellow prospective purchaser, and plaintiff was not justified in relying upon anything that he said or did; and, so far as the original transaction is concerned, Morton is in no way involved, unless with the purpose of carrying out a conspiracy he said or. did something in Arkansás with fraudulent purpose to injure the plaintiff. All that he said and did, so far as the evidence for plaintiff tends to show, was to advise plaintiff to consummate the deal on terms somewhat more advantageous to plaintiff than those which he finally seci^red, and to induce plaintiff to believe that he (Morton) was negotiating for the purchase of another tract of land, through Price’s agency, inferior in quality to the land which plaintiff secured, and at a higher price per [15]*15acre. Plaintiff testifies to an affirmative act of Morton in ostensibly delivering to Wells for Price a check by way of advance payment on the purchase which he was contemplating ; but the evidence so strongly preponderates against plaintiff as to this specific act that we cannot assume it to have been proven. So far as the evidence is satisfactory, it only tends to show that Morton represented himself to be negotiating for the purchase of another tract, and while it is insisted that Morton is shown to have been so far without resources to carry out such prospective purchase that the representation must be assumed to have been fraudulent, we feel that we are not justified in drawing any such inference. Men frequently contemplate and take steps in negotiations which they cannot reasonably be supposed to be able to carry through. We fail to find that Morton made any representations to plaintiff on which he was justified in placing reliance, or that he was a party to any conspiracy to plaintiff’s injury, unless his subsequent relations to the transfer of plaintiff’s lots furnished ground for such an inference.

With reference to Price, the only evidence relied on tending to show a conspiracy is the excessive value placed by him on the land traded to plaintiff, and the subsequent recognition of such excessive valuation in transferring to Wells for $2,500 plaintiff’s lots, which had been estimated in the exchange at $7,000. The mere fact of trading his land to plaintiff at an excessive valuation would not constitute fraud, neither would it in itself tend very strongly to prove a conspiracy. ‘ *

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Bluebook (online)
112 N.W. 205, 135 Iowa 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-v-wells-iowa-1907.