Workman v. Bales

190 Iowa 1061
CourtSupreme Court of Iowa
DecidedFebruary 9, 1921
StatusPublished
Cited by5 cases

This text of 190 Iowa 1061 (Workman v. Bales) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Workman v. Bales, 190 Iowa 1061 (iowa 1921).

Opinion

De G-raee, J.

— The defendants, T. E. Bales and Myrtle Bales, husband and wife, resided at Stockport, Iowa, the husband being engaged in the hardware business with his father, J. E. Bales. There was a garage next to the building in which the hardware business was conducted, and back of the garage was ■an electric light plant, owned- and conducted by T. E. Bales, who had been granted a light franchise by the town of Stock-port. The real estate upon which the electric light plant was situated belonged to the father, J. E. Bales.

In the fall of the year 1917, E. 0. Dayton came to Stock-port, and informed defendant Bales that he had a farm for sale in Lee County, Iowa, owned by one L. B. Weaver, of Nekoma, Illinois, who had purchased same for his son, but that his son had decided to embark in the hardware business. Dayton also represented to Bales that he was acting for a Mr. Hayes, who had previously owned the farm; that he had sold it to Weaver for Mr. Hayes for $110 an acre; that he had a cash buyer for it; and that he could get $110 an acre for it, any day. He also represented that there were 288 acres in the farm, of which 140 were in cultivation.

After this conversation, defendant decided to buy the Weaver farm, and a contract of sale was entered into on November 7, 1917. A few days prior to the execution of the contract, Dayton took Bales to the farm, and, after driving to about the middle of it, pointed out certain boundary lines, in an attempt to show Bales the 140 acres of cultivated land. There were, in fact, but 97 acres in cultivation. Bales was further informed by Dayton that he had previously sold the adjoining farm, belonging to Reif, for $150 an acre, but that Reif had refused to sign the deed, after the execution of the contract. During the preliminary negotiations, Dayton introduced a man as the Mr. L. B. Weaver formerly mentioned by Dayton, and said that the said Weaver had come to look over the stock of goods in the Bales store, and also to look at the Bales residence, which was a part of the property to be exchanged under the contract. This Weaver proceeded to do.

In truth and in fact, L. B. Weaver was an impostor, and a mere hireling of Dayton’s. Furthermore, Dayton was not the agent of Hayes, as represented, as the Hayes farm had been [1063]*1063previously sold by P. J. Hurley, a real estate agent, of Mt. Pleasant, to R. A. Workman and his partner, Frank A. Rhynas, from whose office E. 0. Dayton operated. Under the Workman & Rhynas contract, in May, 1917, Hayes sold this farm for $18,000, or $62.50 an acre; and upon the trial, it was shown by a number of neighbor witnesses that this was the reasonable market value of the land in November, ,1917.

The Reif farm had not, in fact, been sold for $150 an acre, or at any other price, and the title holder had never authorized Dayton to sell the same, nor had Reif’s wife refused to sign the deed, as represented by Dayton.

At about the time the Bales contract was made, the title papers were left at the Stockport Savings Bank, to be subsequently exchanged, after abstracts had been examined. Bales had executed a deed of his real estate, naming as grantee therein L. B. Weaver; but later, he found that this name had been changed to Workman.

The pseudo-agent, Dayton, was not produced as a witness upon the trial of this ease, but a Henry L. Weaver was produced, who testified that he lived in Galesburg, Illinois, but at one time had lived in Nekoma; that he knew E. O. Dayton; that he had been told of the deal in question by Dayton; that Dayton had used his name, but “had got his initials L. B., instead of H. L.,” but that he knew nothing further about the transaction; that he had never seen the Hayes farm; that he had never been to Stockport; that Dayton had told him about this transaction in some “White Elephant Smoke House;” that he did indorse the note in suit to the plaintiff, Workman; and that he had been paid $25 for his services.

The signature “L. B. Weaver,” on the contract of sale and on the assignment thereof to Workman, was made by Dayton, and his only authority for so doing was the consent given by H. L. Weaver, who had no title whatever to the land in question. The sale contract between T. E. Bales and the fictitious L. B. Weaver named a consideration of $33,120; and, under the terms of this contract, Weaver agreed to sell and convey his farm of 288 acres, near Argyle, Iowa, known as the Hayes farm, and Bales agreed to sell and convey his “hardware store, together with the stock and fixtures contained therein, the electric light [1064]*1064plant, together with his franchise from the town of Stockport, for the operation of the same, and his dwelling house property in Stockport.” The Bales properties were taken at an agreed valuation of $24,120, and the $9,000 note in suit represented the difference in the values of the exchanged properties.

The errors relied upon by appellant for reversal, grouped for the sake of brevity, are: (1) The trial court erred in holding that the failure of defendants to convey the real estate on which the electric light plant was situated was not a defense to the matters pleaded by defendants in their counterclaim. (2) The court erred in the statement of the rule on measure of damages, in the instruction given. (3) The court erred in setting aside the verdict of the jury, and in entering a judgment against plaintiff for costs.

3" tog1u£¿nde-ad I. Pleadings determine the issues, and the issues control the competency of the evidence offered. Plaintiff’s petition made no claim against the defendants, except on the note in question. Defendants, in answer, admitted the execution of said note, and that by its terms it was due ana unpaid, and by a counterclaim pleaded fraud and consequent damages. Plaintiff then filed a reply and an amendment thereto, to both of which, respectively, motions to strike were filed, which were in part sustained by the court. The portion stricken from the reply reads as follows: •

“Further replying, this plaintiff states that, under the contract of exchange, the defendants were to convey to said L. B. Weaver certain real estate in Stockport, known as the electric light plant, but that, in writing said deed, either through mistake or for the purposes of fraud, the real estate in which said electric light plant is operated was omitted from the deed, but was not noticed until after the papers had all been executed and title passed. Because of this omission, the defendants did not, in fact, give property in said exchange equal to the actual value of the farm in question.”

The portion stricken from the amendment to reply is: •

“Plaintiff further alleges that, under the provisions of said contract of exchange, defendants were to convey to said Weaver certain real estate in the town of Stockport, known as the electric light plant, and that the defendant, with the fraudulent [1065]*1065purpose and intent to deceive said Weaver and this plaintiff, in preparing their deed omitted therefrom the real estate on which said electric light plant is operated. That said omission and fraud was not discovered by plaintiff until after title had passed to the defendant for the farm in question. That defendants, in furtherance of their scheme to defraud plaintiff, conspired and confederated with J. E. Bales, the father of defend: ant, to take a conveyance of the electric light plant real estate from them, to prevent plaintiff from obtaining title thereto, and that plaintiff has thereby largely lost the benefit of said ca-q.

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Bluebook (online)
190 Iowa 1061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/workman-v-bales-iowa-1921.