Vincent v. Corbett

47 So. 641, 94 Miss. 46
Mississippi Supreme Court·Decided October 15, 1908·Published·Cited by 18 cases

Opinion

Fletcher, J.,

delivered the opinion of the court.

Appellant, .Vincent, purchased from appellee, Corbitt, and Frank Trimble, partners engaged in the business of buying and soiling lands, the land described as the S. E. of section 4, township 22, range 6. Adjoining this land, and with nothing to mark the boundary between, was the S. "W. of the same section belonging to one Barker. The purchase price was $5,040, which was fully paid by Vincent. The transaction was had between Vincent and Trimble, one of the partners, and Trimble represented to Vincent, before the purchase was made and also at the time of the purchase, that the land sold contained sixty-five acres of cleared land and six tenant houses. After the delivery of the deed and the payment of the purchase money, Vincent discovered that fifty acres of the cleared land were in-fact a part of Barker’s tract, and that he (Vincent) got only ■fifteen acres of cleared land. It was further ascertained that, one of the tenant houses, which had been represented as being on his (Vincent’s) land, was in fact situated on the land of Barker. Thereupon, after fruitless efforts to secure a settlement, Vincent instituted an action of deceit against Corbitt and Trimble, claiming damages for the false and fraudulent representations ; but, being unable to secure service upon Trimble, the cause proceeded against _ Corbitt alone.

The original declaration failed to charge that these false representations were made with knowledge of their falsity on the [53] part of the vendors, and because of this omission a demurrer to the declaration was successfully interposed. However, leave being granted to amend, an amendment was made averring that the representations were made “without knowledge or well-founded belief in their truth on the part of defendants.” On the trial Vincent testified to the facts above set forth, and stated that the prospect of securing this quantity of cleared land was a material inducement to the purchase; that Trimble and the witness had ridden by the land two or three times on the train; that Trimble stated positively on more than one occasion, and at the time the deal was closed, that the tract which he proposed to sell contained the entire sixty-five acres of cleared land and all six of the tenant houses; that as a matter of fact a subsequent survey showed that he (witness) got only fifteen acres of cleared land and one cabin less than had been represented; and that the cleared land was worth $30 per acre more than uncleared land. He stated, however, that in his opinion, Trimble was honestly mistaken about the land, and had not been guilty of any intentional fraud or willful deceit. There was further shown by a surveyor the location of the true boundary line between the two tracts. This being all the evidence of the plaintiff, the court excluded the evidence and directed a verdict for the defendant, and plaintiff prosecutes this appeal.

It is the contention of appellee that this action of the lower court was correct, since there was no proof that the false representations were knowingly made, but that, on the contrary, plaintiff gives it as his opinion that Trimble made an honest mistake and did not intend to defraud. It is therefore argued that, since knowledge on the part of a vendor of the falsity of a representation is the gist of an action of deceit, there can be no recovery in such an action unless such knowledge is shown. It is pointed out in this respect that an action of deceit differs from an action for a breach of warranty, since in the latter action it is enough to show that a material warranty has failed, and the question of knowledge is immaterial. This, rule as to [54] actions of deceit is broadly stated in 14 Am. & Eng. Ency. of Law (2d ed.), 86, where it is said: “By the overwhelming' weight of authority, in order to render a person liable for false representations in an action of deceit it must be shown that he made the representation scienter; that is, either with actual knowledge of their falsity, or under such circumstances that the law will imply .or impute knowledge, as in the case of reckless statements without knowledge, whether they are time or false, representations made for a fraudulent purpose, though without actual knowledge of their falsity, and representations accompanied by a false assumption of knowledge, express or implied. As a general rule, an action of deceit cannot be maintained if a false representation is made in the honest belief that it is true.”

While due weight must be given to the necessity for alleging and proving that declarations were made with knowledge of their falsity, regard must also be had for the equally well set-tied principle that statements recklessly made and statements made as of knowledge, when in fact no such knowledge exists, are in law considered as the equivalents of conscious misrepresentations. The doctrine is thus aptly put: “In actions of deceit, the charge of fraudulent intent is maintained by" proof of a statement made, as of the party’s own knowledge, which is false, provided the thing stated is not merely a matter of opinion, estimate, or judgment, but is susceptible of actual knowledge; and in such case it is not necessary to make any further proof of an actual intent to deceive. The fraud exists in stating that the party knoivs the thing to exist when he docs not know it to exist, and, if he does not know it to exist, he must ordinarily be deemed to know that he does not.” Chatham Furniture Co. v. Moffatt, 147 Mass. 403, 18 N. E. 168, 9 Am. St. Rep. 727. It is further said in 14 Am. & Eng. Ency. of Law (2d ed.), 99: “To bring a case within the principle above'stated, it is not necessary that the party wdio has made the false statement of fact shall have unqualifiedly declared [55] himself possessed of knowledge, or, in other words, that he shall have asserted in express terms that he knew his statement to he the truth. If a person makes a positive and unqualified false'statement of a fact which is susceptible of knowledge, an affirmation of knowledge is implied from the positive character of the statement, and, if he has no knowledge, he is guilty of actual fraud.”

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Vincent v. Corbett, 47 So. 641, 94 Miss. 46 (Mich. 1908).

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