Vanbibber v. Beirne

6 W. Va. 168, 1873 W. Va. LEXIS 23
CourtWest Virginia Supreme Court
DecidedFebruary 22, 1873
StatusPublished
Cited by27 cases

This text of 6 W. Va. 168 (Vanbibber v. Beirne) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vanbibber v. Beirne, 6 W. Va. 168, 1873 W. Va. LEXIS 23 (W. Va. 1873).

Opinion

ÜAYMOND, ’ PRESIDENT.

There seems to be some contradiction and confusion in the authorities, as to whether a Court of Equity has jurisdiction AAdiere fraudulent misrepresentation is -made which causes damage. It is said by Lord Eldon in Evans vs. Bicknell, 6 Ves., 174, to be a very old head of equity, that if a representation is made by one person to another going to deal in a matter of interest upon the faith of that representation, the former shall make that representation good, if he kne.AV it to be false. The case of Pasley vs. Freeman, 3 T., R., 151, he thought, might haAre been maintained in equity, upon the principles of many decisions of that Court. About this doctrine Chancellor Kent said there can be no dispute. Bacon vs. Bronson, 7 Johns., Ch., R., 201. Yet it has been seriously questioned in the Supreme Court of the United States; and the opinion of that Court appears to be against the jurisdiction of equity in such case. Russell [176]*176vs. Clark’s ex’ors, &c., 7 Cranch, 69. See Robinson’s old Practice, 2d vol., 30. In the case of Lang vs. Lee, et als, 3d Rand., 410, it was held, that, “where one man recommends another to a third, as being worthy of trust, by which the person recommended obtains, a credit, the party recommending shall be answerable for any loss the other may sustain, in consequence of the credit, if he knew at the time, that the man for whom he vouched was not trustworthy.” This was a suit in chancery, but the suit was not brought or prosecuted to make the party liable, who practised the fraud. The suit was in fact brought by the party who had practised the fraud setting up a deed of trust, and claiming the benefit thereof, against parties for whose benefit another deed of trust had been executed; and the question now under consideration was considered by only two of the Judges, and it was not necessary to decide that equity would have jurisdiction in such a case, and I do not understand them so to decide. In the case of Poore vs. Price, 5th Leigh, page 52, (which was a case founded upon fraudulent misrepresentation, and damage,) it was held that a Court of Equity had jurisdiction, but in that case the plaintiff was induced by the fraudulent misrepresentation of the defendant to release a mortgage to defendant, a purchaser of the mortgaged subject; and the bill, among other things, prayed that the plaintiff be re-instated to the benefit of his mortgage lien. Under the peculiar circumstances of this case the plaintiff had not a complete remedy at law, and it was clearly proper for equity to entertain the bill to re-instate the mortgage lien. In the case of Russell vs. Clark’s ex’ors in 7th Cranch, page 89, Judge Marshall says, “on the question of'fraud the remedy at law is also complete, and no case is recollected where a Court of Equity has afforded relief for an injury sustained by the fraud of a person who is no party to a contract, induced by that fraud. It is true that if certain facts, essential to the merits of a claim, purely le[177]*177gal, be exclusively witbin the knowledge of the party against whom that claim is asserted, he may be required, in a Court of Chancery, to disclose these facts, and the Court, being thus rightly in possession of the cause, will proceed to determine the whole matter in controversy. But this rule cannot be abused, by being employed as a mere pretext for bringing causes into a Court of Equity proper for a Court of law.”

“ The most general description of a Court of Equity is, that it has jurisdiction in cases where a plain, adequate^ and complete remedy cannot be had at law.” Bobinson’s old Practice, 2 Yol., page 1.

It seems to me doubtful whether the- Plaintiff has the right to be entertained in equity upon his case as stated in his bill, upon the supposition that the case made by the bill amounts to a fraudulent misrepresentation-causing damage. It seems clear that in such case the party injured has his remedy at law, and that the remedy is plain and complete. “Fraud without damage, or damage without fraud, gives no cause of action, but where these two do concur, there, an action lieth.” — Per Croke J., 3 Bulstr., 95.

But if it be admitted that equity has jurisdiction of causes of action founded in deceit, and fraudulent misrepresentation whereby damage is incurred, still, I think Plaintiff’s bill fails in its allegations to make a case for the’exercise of that jurisdiction. It fails to allege, that at the time of the insurance by Patrick Beirne, “the loan to John McAneany & Co., was not perfectly safe, and that Patrick Beirne at the - time of the making the assurance knew that the firm was not safe, and that the assurances of Beirne in the bill stated, were false at the time they were made, and that Beirne knew them to be false.” Fraud or fraudulent intent in Beirne in making the assurance, is no where alleged; and the facts are not stated with sufficient distinctness and precision to enable [178]*178the Court to determine the true nature and extent of the assurance, and the effect that should be given to it as a fraud or estoppel. The time the assurance was made, and the circumstances under which it was made are not stated. It is true the bill alleges, that in 1868, nine years after the transaction, the firm of John McAneany & Co., and the members thereof were insolvent and bankrupt, but their condition at the time of the assurance or loans is left to conjecture.

“ Every estoppel,” says Lord Coke, because it concluded a man to allege the truth, must be certain to every intent, and uot to be taken by argument or inference.” (Co., Litt., 352, b.)

Patrick Beirne in his answer denies all the material allegations of the bill, and pleads that the cause of action (if any ever existed, which he denies) accrued more than five years before the institution of the suit. Andrew Beirne filed his answer averring, that there should be further credits on the debt, &c. The other Defendants failed to answer.

To each of the answers the Plaintiff filed a special replication. The replication to the answer of Patrick Beirne says: the Plaintiff did bring and prosecute his suit in this behalf within five years from the time of the Defendant’s liability to be sued; and notice to the Plaintiff that Defendant P. Beirne had not transferred his interest in the firm of Beirne, Duffy & Co., in Nicholas county, to the Defendant, Andrew Beirne, and the other statements in the answer', are denied. It is claimed by the counsel of P. Beirne that the statute of limitations is well pleaded, and that the replication is not sufficient to prevent the statute from running from the time of the alleged loans, and assurances — that if the replication amounts to anything it is only a general replication, or is immaterial. The case of Rice vs. White, 4 Leigh 474, is cited to support this view. I don’t think, under the allegations of the Plaintiff’s bill, the replication is [179]*179sufficient to prevent the statute of limitations from running against Plaintiff’s claim; nor do I think the replication would be sufficient for that purpose in any case.

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Bluebook (online)
6 W. Va. 168, 1873 W. Va. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vanbibber-v-beirne-wva-1873.