Smith v. Packard & Co.

130 N.W. 1076, 152 Iowa 1
CourtSupreme Court of Iowa
DecidedMay 2, 1911
StatusPublished
Cited by17 cases

This text of 130 N.W. 1076 (Smith v. Packard & Co.) 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
Smith v. Packard & Co., 130 N.W. 1076, 152 Iowa 1 (iowa 1911).

Opinion

Evans, J.

The plaintiff is a resident of Des Moines. The defendant is a partnership consisting of two or more [3]*3persons. The representations complained of were participated in by more than one person. We shall therefore refer to the defendant in the plural number.

The defendants were engaged in the real estate business in South Dakota. On of the partners .lived in Des Moines. In 1907 the plaintiff was desirous of ■ locating a homestead in South Dakota, and desired to purchase a relinquishment from some occupant of a suitable quarter section for that purpose. He purchased such relinquishment through the agency of the defendants, paying to them $500 therefor. He avers that he made such purchase in reliance upon certain false representations made to him by the defendants, whereby he was deceived and damaged. The substance of these representations, as he charges them, was that the quarter section covered by the proposed relinquishment contained about one hundred and twenty acres of good, level, tillable land and about forty acres of rough land suitable for pasture, and that it would be worth from $12 to $15 per acre when proven up. Upon the suggestion of the defendants, he went to Dakota to see the land. He went upon the land in company with one of the defendants, who purported to show the same to him. The land was known as the northwest quarter of a certain section 20. The rough land thereon was said to be in the northwest corner, whereas the good land lay to the east. The land shown to him corresponded to the description and was satisfactory to him. After his purchase of the relinquishment, he discovered, as he alleges, that he had been misled as to the boundaries, and that the greater part of the good land which was shown to him was included in the northeast quarter of such section 20, and that the land included within his true boundaries was nearly all rough and worthless. The answer of the defendants was in effect a general denial of all fraudulent representations.

[4]*4representations: evidence. i fraudulent [3]*3I. Plaintiff was a witness in his own behalf. His counsel put to him the following question: “Now, Mr. [4]*4Smith, had you known that the one hundred and twenty acres of level land lying east of the hills was not on your quarter section, would you have filed on that land?” An appropriate objection to this question was sustained, and complaint is now made of the ruling. The only apparent purpose of such question was to prove that the plaintiff relied upon the alleged false representations. He could have testified directly to the fact of such reliance, and there was no occasion to resort to an indirect method. The question was in the nature of cross-examination, and there was no error in excluding it.

z' representation, of government land: measure of damages: II. Complaint is also made, because the court refused to permit the plaintiff to prove the value of the quarter section covered by such relinquishment and upon which the plaintiff filed a homestead entry. The record shows that the court was in some doubt as . to the rule which should obtain for the measure of damages and invited the discussion of counsel on the question. He first permitted the plaintiff to testify, to the value of the land and afterwards struck out the evidence, and announced to counsel that he would hold the measure of damages to be the difference between the value of the relinquishment as it was and its value as it would have been, if the land covered by it had been as good as represented by the defendant. It is the contention of plaintiff that he should have been permitted to show the value of the land in its actual condition as such value would be after he had proven up under the homestead act, and the value of such land as it would be when proven up, if it had been as good as represented. The future value of the land necessarily involved a speculative element. It required time, occupation, and expense in order to make final proofs. Doubtless these elements would enter into the consideration of any witness in giving his opinion as to the value of the relinquishment. The present value of [5]*5the relinquishment was not measured by the future value of the land, nor even by such future value, less expenses. It was no more difficult to prove the value of the relinquishment as such by the direct opinion of the witness, than it was to prove the future value of the land. The elements which entered into such valuation might, perhaps, be inquired into on cross-examination. We do not think the court erred at this point.

3' instructions concerning excluded evidence. III. Later the trial court permitted Hans Johnson, a witness for the defendants, to testify that the land in question was worth $10 an acre. Such testimony was permitted over appropriate objections by the plaintiff. The ruling was clearly inconsistent with the , w ** rule imposed upon the plaintiff and was errosr x sr neous. Still later in the trial, the court sustained the plaintiff’s objections and struck out such evidence. Whether this was done in a way to give the plaintiff the benefit of the ruling before the jury is not free from doubt. The testimony in question was contained in a deposition and consisted of answers of the witness to interrogatories fourteen and fifteen of such deposition. The court simply announced at a later stage of the trial that it would sustain the objections to interrogatories fourteen and fifteen in Johnson’s deposition, and that the answers would be stricken. In no other way was the attention of the jury directed to the evidence which was thus excluded. No request was made that the attention of the jury be directed to the fact, nor that the evidence be ruled out in a more specific way. The ruling, however, was clearly available to the plaintiff in his argument before the jury. ‘We think, therefore, that we ought not to presume that tho jury was ignorant of the effect of the ruling.

[6]*64. Same: intent to deceive: instruction. [5]*5IV. Plaintiff’s petition charged that: (1) Pepresentations complained of were false; (2) that the defendants knew them to be false; (3) that they were made with intent to deceive; (4) that the plaintiff relied on them; [6]*6was damaged thereby. The trial court in-(5) that he structed the jury that it was incumbent upon the plaintiff to establish each of the above elements by a preponderance of the evidence. Plaintiff complains of this instruction. He urges that he was not required to prove an intent to deceive. In support of this contention, reliance is placed on Boddy v. Henry, 126 Iowa, 31. Counsel misconceives the purport of the holding in that case. Intent to deceive is necessarily the gist of an action for deceit. The burden of proving it is necessarily upon the plaintiff. The method of proving it is quite another question. It is always an element of plaintiff’s case, necessary to be alleged, and therefore necessary to be established.

However, the same evidence that proves that a defendant made representations known by him to be false, upon which plaintiff relied to his injury, is ordinarily sufficient, also, to establish the intent to deceive. The intent, being a mere act of the mind of the defendant, is usually established by appropriate inference and presumptions from the overt acts proved.

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Bluebook (online)
130 N.W. 1076, 152 Iowa 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-packard-co-iowa-1911.