Williams v. Moore-Gaunt Co.

60 S.E. 372, 3 Ga. App. 756, 1908 Ga. App. LEXIS 424
CourtCourt of Appeals of Georgia
DecidedFebruary 24, 1908
Docket885
StatusPublished
Cited by30 cases

This text of 60 S.E. 372 (Williams v. Moore-Gaunt Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Moore-Gaunt Co., 60 S.E. 372, 3 Ga. App. 756, 1908 Ga. App. LEXIS 424 (Ga. Ct. App. 1908).

Opinion

Powell, J.

(After stating the foregoing facts.)

1. The relationship of principal and agent is fiduciary in character, and imposes upon the parties the duties of exercising toward each other the utmost good faith. Civil Code, §4030. The [760]*760law implies, as a part of the contract -by which every agency arises, that the agent agrees to have and exercise, for and toward his principal, loyalty and absolute good faith; and any breach of this implied contract on his part forfeits his right to commission. Civil Code, §3014; Gann v. Zettler, ante, 589 (60 S. E. 283); Ramspeck v. Pattillo, 104 Ga. 772 (30 S. E. 962, 42 L. R. A. 197, 69 Am. St. R. 197); Sessions v. Payne, 113 Ga. 955 (39 S. E. 325). If the agent practices upon the principal any deception (whether intentional or not) whereby the principal is misled and damaged and the agent would reap any benefit, the transaction is fraudulent, and the courts will not allow the agent to take or retain the benefit. Hawk v. Leverett, 71 Ga. 675; Sims v. Ferrill, 45 Ga. 585; Civil Code, §§3669, 4026. All sane men are supposed to know the law, but some do not; they are likewise supposed to be capable of. protecting their own interests in the contracts they make, but some are not; hence those who do not know the law, or who are not capable of protecting their own interests in the making of contracts, are sometimes put to the necessity of employing skilled agents, in order that they majr enjoy those advantages which the law presumes are common to all men, but which the law realizes they do not always personally possess. The very motive which would lead an ordinary citizen to pay a real-estate agent to represent him in the sale of his property is a belief that the agent can protect his interests in the transaction better than he can protect them himself; otherwise there would be no sense in his incurring the expense of hiring the agent. When the agent, instead of using his skill to remedy his principal’s ignorance of the law, expressly misinforms him in respect thereto, and, instead of furthering the client’s interest, in opposition thereto furthers his own, the contract of agency is subverted from the very foundations; and to allow the agent to reap any advantage from such a violation of his contract and duty would be utterly antagonistic to every principle of right, reason, and law.'

2. It is true that the plea in this case sets up a state of facts resting solely in.parol, which contradicts the written contract both in terms and in legal effect. As a general rule, a person signing an instrument purporting io bind him to the performance of obligations or the payment of money will not be permitted to prove by parol that no such 'object and intention existed between the par[761]*761ties- — -in other words, to prove a purpose wholly at variance with the plain tenor and import of the writing. Hirsch v. Oliver, 91 Ga. 554, 560 (18 S. E. 354). We concede that under this plea the defendant sought to do all that; but she sought to do more, — - not merely to contradict the writing, but absolutely to destroy its very existence. Bor if the writing was the result of a fraud, it was not a contract at all, but mere paper and ink without the slightest substance of legal efficacy. Civil Code, §3669; Janes v. Merger University, 17 Ga. 515; Barrie v. Miller, 104 Ga. 312 (30 S. E. 840, 69 Am. St. R. 171); McCrary v. Pritchard, 119 Ga. 876, 880 (47 S. E. 341); Wood v. Cincinnati Safe Co., 96 Ga. 120, 124 (22 S. E. 909); Chapman v. Atlanta Guano Co., 91 Ga. 821 (18 S. E. 41). Fraud is to be abhorred; it vitiates everything it touches; and the person guilty of it is not to be countenanced in any way by the courts. We restate these venerable precepts not because they are in anjr doubt or disrepute, but because the human mind has sometimes the fault of being distracted from the obvious by being too attentive to the special, of sometimes overlooking irrefragable principles by concentrating notice too strongly on physical precedents, which, though trustworthy upon their particular facts, in no wise vary the general proposition, but only distinguish it the more clearly, as exceptions emphasize a rule.

3. In this case, according to the plea, the defendant, relying, as she had a right to do, upon the representations of her agent, and not upon her skill and judgment or knowledge of the law, was misinformed both as to the actual facts as they existed and as to •the legal purpose and tenor of the paper she signed. Not only that, but the signing itself was procured by a false representation to her that she was already legally bound to convey the property, and that if she did not enter the proposed plan, she would lose her home. Now as between parties sustaining no confidential relations, it is not every misrepresentation of the law or of the legal effect of the paper, or of the status of things present or future, that will constitute fraud. There, presumptively, the party contracting knows the law, knows his rights, has the discretion and ability to investigate the facts for himself, and can not justify a gross failure to exercise his own faculties and facilities to the protection of his own interests. In such cases the law will not let ■.the maker of the contract set up as fraud the fact that his own neg[762]*762ligenee and inattention to the matters in hand have caused him to be overreached; and will therefore not permit him to say that the writing he has voluntarily signed, as the solemn embodiment of his contract, does not speak the truth. Bostwick v. Duncan, 60 Ga. 384; Jossey v. Railway Co., 109 Ga. 446 (34 S. E. 664); Walton Guano Co. v. Copelan, 112 Ga. 319 (37 S. E. 411, 52 L. R. A. 268), and cit.; Maxwell v. Willingham, 101 Ga. 55 (28 S. E. 672). In these eases the law considers the hardship on the maker the result not of fraud, but of his own negligence. But it is not negligent for one to rely upon the fidelity and loyalty of another, whom he has hired to he faithful and loyal. • The existence of confidential or fiduciary relations between the parties excuses that vigilance which the law would otherwise demand., -A breach of this confidence, a violation of the implied contract for utmost good faith, -is in law a fraud. Kellam v. Allen (sub nom.) Roe v. Doe, 31 Ga. 544; Granniss v. Bates, 55 Ga. 148, 150. A typical application of this principle is found in the case of Hawk v. Leverett, 71 Ga. 675. The headnote there states the proposition involved thus: “If a vendor of land acted upon the advice of.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

McLane v. Atlanta Market Center Management Co.
486 S.E.2d 30 (Court of Appeals of Georgia, 1997)
Garcia v. Unique Realty & Property Management Co.
424 S.E.2d 14 (Court of Appeals of Georgia, 1992)
E. H. Crump Co. of Georgia, Inc. v. Millar
391 S.E.2d 775 (Court of Appeals of Georgia, 1990)
Vinson v. E. W. Buschman Co.
323 S.E.2d 204 (Court of Appeals of Georgia, 1984)
E. F. Hutton & Co. v. Weeks
304 S.E.2d 420 (Court of Appeals of Georgia, 1983)
Howell v. Greene Real Estate Co.
592 S.E.2d 520 (Court of Appeals of Georgia, 1982)
Dawes Mining Co. v. Callahan
272 S.E.2d 267 (Supreme Court of Georgia, 1980)
Smith v. Jones
269 S.E.2d 471 (Court of Appeals of Georgia, 1980)
Scott v. Lumpkin
264 S.E.2d 514 (Court of Appeals of Georgia, 1980)
Spratlin, Harrington & Thomas, Inc. v. Hawn
156 S.E.2d 402 (Court of Appeals of Georgia, 1967)
Kellett v. Boynton
75 S.E.2d 292 (Court of Appeals of Georgia, 1953)
Pfeffer v. General Casualty Co. of America
73 S.E.2d 234 (Court of Appeals of Georgia, 1952)
Reisman v. Massey
67 S.E.2d 585 (Court of Appeals of Georgia, 1951)
Johnson v. Sherrer
29 S.E.2d 581 (Supreme Court of Georgia, 1944)
Allen v. Southern Insurance Securities Corp.
187 S.E. 714 (Court of Appeals of Georgia, 1936)
Williamson, Inman & Co. v. Thompson
187 S.E. 194 (Court of Appeals of Georgia, 1936)
Peevy v. Wilkes
172 S.E. 108 (Court of Appeals of Georgia, 1933)
Nolan v. Calhoun
143 S.E. 606 (Court of Appeals of Georgia, 1928)
Render & Hammett v. Hartford Fire Insurance
127 S.E. 902 (Court of Appeals of Georgia, 1925)
Peterson v. Appleby
120 S.E. 651 (Court of Appeals of Georgia, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
60 S.E. 372, 3 Ga. App. 756, 1908 Ga. App. LEXIS 424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-moore-gaunt-co-gactapp-1908.