Straus v. Norris

79 A. 611, 78 N.J. Eq. 488, 8 Buchanan 488, 1911 N.J. Ch. LEXIS 51
CourtNew Jersey Court of Chancery
DecidedMarch 30, 1911
StatusPublished
Cited by4 cases

This text of 79 A. 611 (Straus v. Norris) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Straus v. Norris, 79 A. 611, 78 N.J. Eq. 488, 8 Buchanan 488, 1911 N.J. Ch. LEXIS 51 (N.J. Ct. App. 1911).

Opinion

Howell, V. C.

Tlie first question to be disposed of is the agency of Mr. Allaire He is a real estate broker having an office at Red Bank, near the property in question. Somehow he had the Patterson farm “on his books,” as property that was for sale, but in the beginning of his negotiations with Mr. Straus and his broker he had no special or definite authority from Miss Norris to represent her in the transaction in question. The evidence shows that when he received an offer from the complainant he submitted it to Miss Norris, and I gather from the circumstances that she, either expressly or tacitly at that time, authorized Mr. Allaire to represent her in the sale to the complainant. At any rate, if she did not expressly so authorize him, she took the benefit of his labor and effort, and to the extent to which she subsequently signed documents must be held to have ratified his authority.

There is no doubt but that Mr. Allaire represented that the farm contained eighty-two acres, or that the complainant went upon the land before the deed was delivered and was there shown the boundaries and extent of it. It is quite plain that everybody understood that he was purchasing eighty-two acres of land at a price of about $450 per acre. The facts resemble those in Paine v. Upton, 87 N. Y. 327, concerning which Chief-Justice Andrews says: “The facts affirmatively show a mutual mistake of the parties, in respect to the quantity of land, which commenced with the commencement of the negotiation for the sale of the farm, and pervaded the whole dealing from that time until the transaction was consummated, by the giving of the deed and the execution of the mortgage. This mistake, moreover, was as to an essential and material element of the contract. In the absence of any finding of special facts, and circumstances, the natural presumption is, that in a sale of agricultural land, the element of quantity enters into the transaction and affects the consideration agreed to be paid. But in this case it is plain that the representation of quantity was deemed material by the parties. The sale was, perhaps, not technically a sale by the acre. But the starting point of the negotiation was an inquiry by the purchaser as to the quantity of land in the farm, and the gross sum originally asked was fixed by the sellers by reckoning [492]*492the land at $150 an acre. The price finally agreed upon was also fixed upon the supposition that the farm contained at least two hundred and twenty acres.” This is a fair epitome of the facts in the case at bar. In Couse v. Boyles, 4 N. J. Eq. (3 Gr. Ch.) 212, the chancellor says that there is a presumption that in fixing the price of land regard is had to the quantity.

I find, however, that the representations were not fraudulent, but were the result of an innocent mistake on the part of Miss Norris, which she was probably led into by a sort of general understanding in the neighborhood of the acreage of the tract, and particularly by a copy of a map of the Patterson farm, which came into her possession and which she showed to the complainant during the negotiations and produced at the hearing, on which the tract in question is marked “82 acres.” It must be kept in mind thát this suit is not a suit for the rescission or cancellation of the contract on the ground of misrepresentation, but is brought to recover back a portion of the purchase-money paid by the vendee upon the ground that he overpaid the vendor by reason of her misrepresentation of a then present fact. There appears to be no express authority in this state for such a proceeding. There are, however, many cases in which this court and the court of errors and appeals, in foreclosure suits, have ordered an abatement to be made in the amount secured by purchase-money mortgages which were the result of conveyances of land as to which the mortgagee misrepresented the number of acres in the tract combed and covered by the mortgage. These cases, to a large number of which reference will be made, are analogous in principle to the case at bar. The earliest one is Couse v. Boyles, 4 N. J. Eq. (3 Gr. Ch.) 212, in which there was a large deficiency of acreage, one surveyor making it twenty-two acres and another thirty-four acres out of a total of one hundred and twelve acres as represented. Chancellor Pennington says in that case: “The plain and sensible rule, as it appears to me, is this: When land is sold as containing so many acres 'more or less,’ if the quantity on an actual survey and estimation either overrunning or falling short of the contents named be small, no compensation should be recovered bjr either party. The words 'more or less’ must be intended to meet such a result, but if the variance [493]*493be considerable, the party sustaining the loss should be allowed for it, and this rule should prevail where it arises from mistake only, without fraud or deception. * * * The rule is stated to apply generally, although the land is not bought or sold professedly by the acre, the presumption being that in fixing the price regard was had to the quantity. If the purchaser knows the true quantity at the time of his purchase, or there are words used' clearly indicating the intention of both parties not to be governed in the sale by the amount of land the purchaser will not be entitled to any relief.” The ground of this decision is mistake. There was no fraud. The mistake was that of the grantor. The mistaken idea was conveyed to the grantee in the form of a misrepresentation of a fact. He relied on that misrepresentation, paid his money in consequence thereof, and then urged that the amount overpaid by him should be deducted from the amount claimed on the purchase-money mortgage. A decree was made in his favor; the deduction was allowed. The case stands approved by all the judges who have had to deal with the question.

In Weart v. Rose (1863), 16 N. J. Eq. (1 C. E. Gr.) 290, the mortgagee, who was the vendee, brought suit to redeem the mortgage after deducting therefrom the price of the deficiency ascertained to exist in the quantity of acres as described in the deed. The relief was sought — first, on the ground of fraud; second, on the ground of mutual mistake. The court held that the charge of fraud was not sustained by the testimony, and that the deficiency in acreage was too small to warrant the interference of the court on the ground of gross mistake. It followed the doctrine of Couse v. Boyles, but refused relief because of the insignificance of the cause of complaint. In White v. Stretch (1871), 22 N. J. Eq. (7 C. E. Gr.) 76, this court, upon the same principle and upon the authority of Couse v. Boyles, deducted from the purchase-money mortgage the amount of assessments on the mortgaged premises which the mortgagor had paid. In Melick v. Dayton (1881), 34 N. J. Eq. (7 Stew.) 245, the court of errors and appeals, in a foreclosure suit, declared that the mortgagor might have relief if the mortgagee had fraudulently represented the number of acres to be greater than the actual number conveyed, and that abatement would also be made where there is a [494]*494gross mistake; gross mistake was said to occur where the difference between the actual and the estimated quantity of land represented is so great as to clearly warrant the conclusion that the parties would not have contracted had they known the truth. In Frenche v. The Chancellor (1893), 51 N. J. Eq. (6 Dick.) 624, the court of errors and appeals reaffirmed the doctrine of Melide v. Dayton,

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Bluebook (online)
79 A. 611, 78 N.J. Eq. 488, 8 Buchanan 488, 1911 N.J. Ch. LEXIS 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/straus-v-norris-njch-1911.