Wolcott v. Wise

130 N.E. 544, 75 Ind. App. 301, 1921 Ind. App. LEXIS 270
CourtIndiana Court of Appeals
DecidedApril 6, 1921
DocketNo. 10,761
StatusPublished
Cited by1 cases

This text of 130 N.E. 544 (Wolcott v. Wise) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolcott v. Wise, 130 N.E. 544, 75 Ind. App. 301, 1921 Ind. App. LEXIS 270 (Ind. Ct. App. 1921).

Opinion

Batman, J.

Appellant filed a complaint against appellee and one Guy Lynch to recover on the following contract:

“This is to certify that Charles C. Wolcott is to get Fifty ($50.00) Dollars per year as his portion of the rental of lots 8-9-10, in block 9, on the west side of Broadway, Gary, Indiana, at the rate of Four (4) and 16/100 dollars per month, provided we receive the same beginning January 1,1911, for a period of twenty years.
(Signed) Wise & Lynch.”

Said Lynch was not served with process, and did not enter his appearance, and the cause was put at issue and tried with appellee as the sole defendant. The complaint consists of two paragraphs, to which appellee filed an answer consisting of a general denial and two affirmative paragraphs, one alleging payment and the other want of consideration. Appellant filed a reply in general denial. Appellee also filed a cross-complaint against appellant, alleging that the contract sued on was obtained by fraud and asking that the same be canceled. Appellant answered this cross-complaint by a general denial, and also by an affirmative paragraph based on the six-year statute of limitations. Appellant also filed a supplemental complaint asking that a certain amount accrued on the contract in suit, subsequent to the filing of the original complaint, be included in any judgment in his favor. The cause was tried by the court, resulting in a judgment against appellant on his complaint, [303]*303and in favor of appellee on his cross-complaint, and by which the contract in suit was decreed canceled. Appellant filed a motion for a new trial, which was overruled, and this action of the court is assigned as error on appeal.

Appellant’s motion for a new trial is based on the reasons, that the decision of the court is not sustained by sufficient evidence and is contrary to law. The undisputed evidence in this case, taken in connection with that most favorable to appellee where there is a conflict, shows that in the year, 1910, appellant, appellee and said Guy Lynch were in the real estate business in the city of Gary; that prior to the month of July of said year appellant had received a letter from one J. L. Faulhaber, who was the owner of lots numbered 8, 9 and 10 in block 9 of said city, in which he proposed to appellant, that if he would find some one who would lease said lots, that he (appellant) could have all over' and above $50 per month which he (Faulhaber) received as rent therefor after all taxes and assessments were paid; that if appellant found any one who would lease said lots, said letter should become a contract and be binding for twenty years after the date of such lease; that during the month of July of said year appellant, desiring to be absent from said city for some time, called on appellee and the said Guy Lynch, who were partners, for the purpose of turning over to them his real estate business on a profit sharing basis; that during their negotiations in that regard appellant spoke of the above described lots, and stated that he had the exclusive right to rent the same as agent of the owner; that as the result of said negotiations, appellant placed the renting of said lots in the hands of said Wise and Lynch with an agreement to share with them any profits arising therefrom, but refused to give them the name of the owner thereof; that at said time said Wise and Lynch did not [304]*304know who was the owner of said real estate, or that the same was being offered for rent; that some time prior to October of said year Wise and Lynch found a prospective tenant for said lots and communicated that fact to appellant by letter, and inquired what course they should pursue in order to close the matter,, if they succeeded in leasing the same; that appellant then gave them the name and address of the owner of said lots, and told them they could take up the matter of executing the lease with him; that their prospective tenant agreed to take a lease on said lots for twenty years frpm January 1, 1911, at $60. per month, and in addition thereto to pay the taxes thereon, and such a lease was thereafter executed to him by the owner thereof; that appellant returne'd to Gary prior to October 1, 1910, and called on Wise and Lynch to make settlement as to a division of the profits to be derived from' the leasing of said lots; that a difference arose as to such division, appellant claiming that he should have one-half thereof and Wise and Lynch the remaining one-half, while they claimed that the three parties concerned should each have one-third thereof; that an agreement was reached whereby appellant was to have $50 annually from said profits, provided the same were received by Wise and Lynch, and that they were to have the remainder thereof; that to evidence said agreement the contract in suit was executed; that for almost three years after said lease became effective the said Wise and Lynch received and paid to appellant the amount provided in said contract, when they learned for the first time that appellant did not have the exclusive right to rent said real estate as the agent of the owner, and thereafter refused to pay appellant any further amount under said contract on the ground that appellant had procured its execution through fraud, although they had received since said refusal the sum of $500 as profits from rent[305]*305ing said real estate as hereinbefore stated; that if appellant had not represented to Wise and Lynch that he had the exclusive right to rent said real estate, they would not have agreed to co-operate with him under his contract.

1. Appellee contends that the foregoing facts show that the contract in suit was procured through fraud, and that the decision of the court, therefore, is sustained by sufficient evidence. We cannot concur in this contention. One of the facts essential to the avoidance of a contract, alleged to have been procured by fraud, is that the complaining party should have sustained damages by reason thereof. Bish v. VanCannon (1884), 94 Ind. 263; Srader v. Srader, Admr. (1898), 151 Ind. 339, 51 N. E. 479; Board, etc. v. Garrigus (1905), 164 Ind. 589, 73 N. E. 82, 74 N. E. 249; Merchants Nat. Bank v. Nees (1915), 62 Ind. App. 290, 110 N. E. 73, 112 N. E. 904. Such damages, however, must be the natural and proximate consequences of the fraud, and not those which are remote, contingent or purely conjectural. 20 Cyc 143; 12 R. C. L. 452; Hartford Life Ins. Co. v. Hope (1907), 40 Ind. App. 354, 81 N. E. 595, 81 N. E. 1088; Linderman, etc., Co. v. Hillenbrand Co. (1920), ante, 111, 127 N. E. 813. .

2. In the instant case it appears that Wise and Lynch, prior to the time appellant called on them, did not know the name of the owner of the lots in question/ or that they were offered for rent; that by reason of the information given them by appellant, they agreed to co-operate with him in realizing a profit from his contract with the owner in which they should share; that in pursuance of said agreement they did find a tenant for said lots, who entered into a lease with the owner thereof on such terms, that a profit of $120 annually would be realized from appellant’s said con[306]

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Bluebook (online)
130 N.E. 544, 75 Ind. App. 301, 1921 Ind. App. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolcott-v-wise-indctapp-1921.