Zimmerman v. Feldman

186 N.W. 495, 217 Mich. 390, 1922 Mich. LEXIS 989
CourtMichigan Supreme Court
DecidedFebruary 8, 1922
DocketDocket No. 63
StatusPublished
Cited by8 cases

This text of 186 N.W. 495 (Zimmerman v. Feldman) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zimmerman v. Feldman, 186 N.W. 495, 217 Mich. 390, 1922 Mich. LEXIS 989 (Mich. 1922).

Opinion

Moore, J.

The plaintiffs are brothers-in-law. On November 21, 1917, defendant Hine entered into a written contract with plaintiff Wirth for the sale to him of a large apartment house on Hendrie avenue in [391]*391the city of Detroit. The consideration named in the contract was $83,000. At this time Mr. Wirth conveyed to Mr. Hine certain lands at Mt. Clemens, Michigan, which conveyance was received as a payment of $15,500 on the contract, leaving unpaid thereon $67,500 which was to be paid at the rate of $500 on the 10th of each calendar month. The contract was a long one and it will not be necessary to recite the other provisions contained therein. Mr. Wirth immediately entered into possession of the Hendrie avenue property. It soon developed that the rentals would not pay the expenses of the upkeep of the apartment house and meet the monthly payments. Mr. Zimmerman came to the rescue of Mr. Wirth and advanced upwards of a thousand dollars, mostly to pay for coal which was bought during the winter in which coal was so hard to get. Mr. Zimmerman and Mr. Wirth were both agreed that Mr. Wirth should sell or exchange the property for something Mr. Wirth could handle. The claim is that Mr. Mitchell was employed for that purpose. Mr. Feldman was the owner of a much smaller apartment on Canfield avenue. He had given defendant Goldberg an option to sell the property for $25,000 net to Feldman; all above that sum received for the property to be retained by Mr. Goldberg as his commission. Mr. Mitchell interviewed Mr. Goldberg for the purpose of trying to effect an exchange of the properties. All this time Mr. Wirth was confined to his house as the result of an accident, and it is claimed that Mr. Zimmerman actively represented Mr. Wirth in the negotiations, and it is also claimed by the defendants that Mr. Zimmerman was furnished with a list of the apartments contained in the Canfield avenue apartment, and the rentals received therefrom, and that he visited it for the purpose of checking up the list and inspecting the property. This claim is not admitted by Mr. Zimmerman. [392]*392The result of the negotiations was that an exchange of the properties was agreed upon between Wirth and Goldberg, April 8, 1918, which agreement was put in writing. At this time a note for $1,000 was given to Goldberg by Wirth and Zimmerman which Goldberg claims was given to him because some cash payments that were due Mr. Hine had not been met. The fact that the note was given is admitted, but Wirth and Zimmerman do not agree with Goldberg as to the reason for giving it.

April 18, 1919, Feldman made a contract with the plaintiffs for the Canfield avenue property, in which the consideration was stated to be $40,500, in which contract it was recited that $15,500 was paid on that date. It is claimed by the defendants that this recital was put in at the request of the plaintiffs to help them to sell the property. The balance of the consideration was to be paid in monthly payments of $165 or more. On this day or the day - before Mr. Wirth assigned the Hine contract to Mr. Goldberg. Mr. Hine never consented to, or recognized, this assignment. Later the payments were not made and Mr. Hine took possession of the Hendrie apartment. The plaintiffs immediately upon the making of the contract entered into the possession of the Canfield property. In January, 1919, Mr. Wirth had failed to make all the monthly payments to Mr. Feldman and the latter on February 6, 1919, instituted a suit before one of the circuit court commissioners for the purpose of getting possession of the premises. That case found its way to this court and is reported in 208 Mich. 240. In that case the appeal taken from the circuit court commissioner by the plaintiffs in the case now before us was dismissed.

On February 11, 1919, the original bill now under consideration was filed. It was averred therein that a fraud had been perpetrated in that the Canfield [393]*393property had been represented to be new and sound, and that the amounts received as rents had been overstated, and the prayer was for a rescission, and. that Goldberg and Feldman might be required to reimburse the plaintiffs for the amounts paid and expended by them. July 19, 1920, an amendment was made to the original bill of complaint reciting the proceedings before the circuit court commissioner and in this court, and prayed for an injunction and other relief.

August 21, 1920, a second amendment to the bill of complaint was filed and counsel stated on the oral argument that the relief now asked in this court is as follows:

“And because of the wrongs mentioned in paragraph 13 of the amended bill of complaint, and in the original, amended and supplemental bills of complaint, the plaintiffs pray for a decree for the reconveyance to them of their equity described in paragraphs 1, 2, 2a and 3 of the original bill of complaint; the repayment to them of the moneys they were induced to part with by reason of the fraud; a credit on the purchase price of - the property described in paragraph 5 of the original bill of complaint to the extent of the damages suffered by these plaintiffs by reason of the several frauds of the said defendants; and all the other reliefs prayed for in any paragraphs of the original, amended and supplemental bills of complaint.”

Various answers were filed by the defendants in which they denied all allegations of fraud and Mr. Hine filed an answer in the nature of a cross-bill in which he asked- for affirmative relief. The defendants averred that the parties dealt at arms’ length and that the Hendrie property was not worth more than the debt against it. The first part of the decree entered in the case after a hearing in open court finds that the charges of fraud made in the various bills of complaint are not sustained, and dismissed all of the bills of complaint with costs. The second part [394]*394of the decree undertakes to deal with the equities of the defendants with each other. The plaintiffs are the only ones who have appealed from the' decree.

The first question to be considered is, Are the charges of fraud sustained? The plaintiffs called Feldman and Goldberg as adverse witnesses. Their testimony in so far as it was material tended to negative the charges of fraud. Mr. Mitchell and Mr. Zimmerman were also sworn on the part of the plaintiffs. Their recollection of what was said and done did not seem to be very clear. They were in conflict however in relation to one material thing. Mr. Mitchell testified that Mr. Zimmerman visited the Canfield avenue property while the negotiations were going on. We quote:

“I do not know whether Mr. Wirth investigated the Pennsylvania property. He said he might go over in a machine to look it over, but he was not certain whether he could get there or not.
“Q. Do you know from what he told you that he went out and investigated the property?
“A. Yes, sir. They went out together. Mr. Zimmerman told me he had some interest in the Seaman court apartments, that he was looking after the rents or some collection and they put up some money at one time or another and he wanted to get his money back.”

This was denied by Mr. Zimmerman and Mr. Wirth. The testimony was in conflict as to what was said and done.

We quote some of Mr. Zimmerman’s testimony:

“Mr. Mitchell came in to see me several times before this deal was consummated or anything done.

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Cite This Page — Counsel Stack

Bluebook (online)
186 N.W. 495, 217 Mich. 390, 1922 Mich. LEXIS 989, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmerman-v-feldman-mich-1922.