Smith v. Young

179 Ill. App. 364, 1913 Ill. App. LEXIS 913
CourtAppellate Court of Illinois
DecidedMarch 12, 1913
DocketGen. No. 5,703
StatusPublished

This text of 179 Ill. App. 364 (Smith v. Young) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Young, 179 Ill. App. 364, 1913 Ill. App. LEXIS 913 (Ill. Ct. App. 1913).

Opinion

Mr. Justice Whitney

delivered the opinion of the court.

Appellant sued appellee in assumpsit and filed a declaration consisting of four special counts and the common counts. Appellee pleaded the general issue. There as a jury trial and verdict for appellee. Appellant’s motion for a new trial was overruled, and appellee had judgment for costs and plaintiff below appeals.

The first special count alleged appellee was president of the Bock Island Tool Company, and sold appellant twenty shares of its capital stock for $2,000 cash, paid by appellant, and that as a part of the consideration appellee promised to take back said stock at any time within a year if appellant should become dissatisfied therewith, and that appellant became dissatisfied and tendered the stock back within one year, and appellee refused to receive it.

The second count is substantially the same but ends by charging that appellee refused to receive the stock back, or to pay for same.

The third count alleged a loan of $2,000 by appellant to appellee, and that appellee deposited twenty shares of said capital stock as collateral security for said loan.

The fourth count charged that in consideration that appellant would buy of appellee this twenty shares of stock appellee promised appellant that said stock was-of good merchantable valué, and a safe, secure and profitable investment for appellant to make; that the tool company was solvent, doing a profitable business and perfectly responsible and that the capital "stock was worth one hundred cents on the dollar; that appellant relied on these statements in buying said stock, and would not have made the purchase if it had not been for said statements, the truth of which appellee as president had means and was compelled to know; whereas, the stock had no good merchantable value, and was not a safe, secure and profitable investment, and that the tool company was not solvent, and was not doing a good profitable business, and was insolvent, and was soon after adjudged a bankrupt, and that said stock was of no value to appellant.

This fourth count would have been proper in an action for fraud and deceit. Appellant should have been required to elect, either to strike out the fourth count, and prosecute his action in assumpsit, or to abandon the other counts and change the form of action to case, and prosecute his action under the fourth count for fraud and deceit, but this was not asked in the court below. There was, however, no proof which would have authorized a recovery on the fourth, count. There is proof appellee made statements praising the value of this stock. The corporation had been organized but a few days when the stock was purchased. It was manufacturing vises in a small building, had ten to twenty men at work, and had some of the manufacturing material about the shop, which appellant saw before he purchased. There is nothing-in the evidence to show that the stock was not when purchased, of good marketable value, and nothing to show that it did not then appear to be a safe, secure and profitable investment, and there is no proof that the company was not then solvent, and doing a profitable business. There was no proof that the company was ever adjudged a bankrupt, or that this stock became of no value, or was of no value at the time of the trial.

Appellant testified in chief that appellee told him, when he afterward went to him to have him buy back the stock that the company was bankrupt, but on cross-examination it was developed that he only meant to testify that appellee told him he was not satisfied with the way the affairs of the company were running, and that it was running behind, and other like language from which the witness inferred that it was bankrupt. There was the further fact proved that appellant did not receive any dividend upon this stock. If the case had been tried upon the fourth count alone, and on this evidence, and there had been a verdict for appellant, it could not have been sustained for lack of proof of the allegations in that count.

The third count alleging the loan of money by appellant to appellee was not proved. Appellant dwells at length in his argument upon the common counts and urges that he could have recovered under the common counts, if he failed to prove the special counts, and that certain instructions given for appellee operated to prevent his recovery under the common counts. The law is well established where a contract has been completely performed on one side, and has been completely performed on the other side, except the payment of money, that -money can be recovered under the common counts, but if something more must be proved besides the existence of an indebtedness to authorize a recovery then a recovery cannot be had under the common counts. Here, appellant claimed to have produced testimony to the effect that when he bought the stock of appellee it was a part of the consideration on which he bought it, that appellee promised him that within a year if he should become dissatisfied with his investment, appellee would buy back his stock, and pay him for it the $2,000 which appellant had paid therefor, and that appellant went to appellee within one year and asked him to buy back the stock, and that he then had the stock in his possession, but did not tender or offer it to appellee because appellee told him he could not buy it back.

To recover it was necessary for appellant not only to establish that contract, and show he demanded within the year that he take back the stock, but also to show that he tendered the stock to him, or show an excuse for not actually tendering it, and then show he had kept that tender good, or had always been ready and able to deliver the stock to appellee whenever appellee would pay him the $2,000 and interest thereon. If he afterwards sold the stock to someone else, he could not have maintained this suit under the common counts because of his inability to turn the stock back.

We therefore conclude under the proof, appellant could not under any circumstances shown in the proofs, have recovered under the common counts. Even if as appellant argues there was some assurance by appellee that he might take the stock back at some later date, and even though it amounted to a binding promise, based on a sufficient consideration, still before he could recover he would have to show that he was able to perform his part by delivering the stock. If appellant had tendered the stock to appellee at the time in question and appellee had taken it but failed to pay, then there would have been such a complete performance by appellant, that he could have maintained an action under the common counts, but as long as the stock had not been delivered to and accepted by appellee, special averments were required, and the common counts alone were insufficient.

When the contract was made appellant and his two sons and appellee were present. Appellant and one of his sons testified in chief to a contract hy appellee to take the stock back within one year, and pay back the consideration if appellant wished.

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Bluebook (online)
179 Ill. App. 364, 1913 Ill. App. LEXIS 913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-young-illappct-1913.