Schoellhamer v. Rometsch

38 P. 344, 26 Or. 394, 1894 Ore. LEXIS 114
Oregon Supreme Court·Decided December 3, 1894·Published·Cited by 13 cases

Opinion

Opinion by

Mr. Chief Justice Bean.

1. It is contended by the defendant that the complaint is insufficient to charge fraud because it does not aver in direct terms that the alleged fraudulent representations were made by defendant with an intent to deceive the plaintiff. To support this contention, reliance is had upon the case of Rolfes v. Russell, 5 Or. 400. This was an action for deceit to recover damages for false representations as to the character, quality, and boundaries of a certain tract of land sold by the defendant to the plaintiff. The complaint did not allege that defendant knew the representations alleged to have been made by him to be false, and for this reason the court very properly held that a cause of action was not stated, and that the complaint was insufficient to support the verdict. In the course of the opinion, however, it was said that ‘ ‘ the gist of this class of actions being fraud, in order to maintain them it is [399] necessary to aver and prove: (1) That the representations made were false; (2) that defendants knew them to be false; (3) that they were made with an intent to defraud; and (4) that plaintiff, relying upon the representations, was induced to enter into the contract. ” It is upon this portion of the opinion the defendant relies for a reversal of the case at bar. When the language quoted is considered in connection with the remainder of the opinion and the question actually before the court for determination, it is apparent that it was not the intention to hold that in all cases a complaint in an action for deceit would be insufficient to sustain a verdict unless it contained an affirmative allegation of an intent to deceive. Indeed, there is a very strong implication to the contrary; for, after stating that the only allegation on the subject of false representation in the complaint before the court was that they ‘ ‘ are and were wholly false, ” and that plaintiff relying thereon was induced to make the purchase, Mr. Justice Prim says: “Thus, it will be seen that no ‘scienter’ is alleged in the complaint, nor is there any other fact alleged which is equivalent to such an allegation,” thus implying that the complaint might be sufficient without a positive allegation of the scienter. An intent to deceive is of course a necessary ingredient of fraud, and a false representation does not at law amount to a fraud unless it is made with a fraudulent intent; but, as stated by Mr. Kerr, “there is a fraudulent intent if a man, either with the view of benefiting himself, or misleading another into a course of action which may be injurious to him, makes a representation which he knows to be false, or which he does not believe to be true ”: Kerr on Fraud and Mistake, § 55. Now in this case it appears from the complaint that defendant made representations concerning a material, matter, which he knew to be false, for the purpose of inducing the plaintiff, and which did induce her, to enter [400] into a contract which, proved injurious, to her, and hence it must necessarily be implied, after a verdict at least, that such representations were made with an intent to deceive. In fact it is difficult to understand how an allegation that defendant made the false representations with intent to deceive the plaintiff could have made his intention any more apparent than now appears from the complaint.

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Schoellhamer v. Rometsch, 38 P. 344, 26 Or. 394, 1894 Ore. LEXIS 114 (Or. 1894).

38 P. 344 (Schoellhamer v. Rometsch) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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