Brooks v. Estate of Brooks
Brooks v. Estate of Brooks
Opinion of the Court
I. The form of the petition is “in equity.” Features of an equitable action in the petition are negligible. The court, in the course of the trial, denominated the case a law action, and ruled upon the admission and exclusion of evidence, permitting the evidence offered — to which objections
In the fall of 1913, appellant purchased bonds of the United Flour Miil Companies, in the amount of $4,500. Early in 1914, plaintiff purchased $4,500 more of said bonds. To make the last purchase, plaintiff borrowed $4,500 from the National State Bank of Burlington, Iowa, and gave his note to the bank therefor, and put up his bonds as security for the loan. The record also shows that, prior to the purchase of the above mentioned bonds, plaintiff had purchased $6,000 worth of the same bonds; but said bonds are not in controversy in this case. The record shows that the two lots of bonds of $4,500 each were disposed of, and the proceeds, in the amount of $5,426.56, deposited in the National State Bank, to the credit of H. E. Brooks, and that, on December 22, 1917, a certificate of deposit was issued to him for same.
On September 3, 1919, this action was begun against J. W. Brooks, to reepver the difference between the amount of said bonds so purchased by plaintiff, with interest thereon, and the amount of the certificate of deposit issued to plaintiff by the bank.
II. The petition is the ordinary petition in a case based on fraudulent representations, the material allegations of which are that J. W. Brooks, the original defendant, is the brother of appellant, and vice president of the National State Bank of Burlington, Iowa, and trustee of the Brooks estate, a portion of which belongs to appellant; that appellant, from time to time, received from J. W. Brooks, trustee of the Brooks estate, funds, and was accustomed to consult with J. W. Brooks regarding investments of his money; that, on the 24th day of October, 1913, appellant was at the bank, and met J. W. Brooks, who advised him that he had an opportunity to make a desirable investment, stating that the bonds of the United Flour Mills Companies were being sold at or about par, that the bonds drew 6 per cent interest, and were guaranteed by the Continental & Commercial Bank of Chicago, that he had invested largely in these bonds, and that J. T. Remey, the president of the bank, had invested in these bonds, and that the bank had taken a large
An amendment to the petition alleges that appellant relied upon the representations of J. W. Brooks, as alleged in the petition, in the purchase of the whole $9,000 in bonds; and that, if said bonds had been guaranteed by the Continental & Commercial Bank of Chicago, as represented by J. W. Brooks, there would have been no occasion for selling them for less than their face value; that appellant’s loss occurred by reason of the fact that J. W. Brooks 'wrongfully and fraudulently secured from him money, and invested the same in said bonds, when the bonds were not guaranteed by the Continental & Commercial Bank of Chicago, and were not as represented; and that none of said money would have been given to J. W. Brooks for the purchase of said bonds, but for such false and fraudúlent representations made by J. W. Brooks, knowing them to be false and fraudulent.
After they were substituted defendants, appellees answered by a general denial.
On the issues thus made, the case was tried. The court dismissed the petition, and entered judgment for costs against plaintiff, from which judgment this appeal is prosecuted.
III. To sustain his action, evidence was offered by appellant and received, in substance as follows:
Charles E. Brooks, brother of appellant and J. W. Brooks, and an employee of the National State Bank at the time of the transaction involved in this action, testified that J. T. Remey was president of the National State Bank, and J. W. Brooks was vice president of said bank at the time of the transactions involved in this action; that H. E. Brooks was accustomed, from time to time, to consult with J. W. Brooks about the investment of his funds; that he knew of H. E. Brooks’ buying, through his brother, J. W. Brooks, in October, 1913, some bonds of the United Flour Mills Company; that he could not say whether he was present at the’ bank or not at that time, except from his
Appellant, H. E. Brooks, testified that he purchased United Flour Mills bonds in the amount of $9,000. Witness was asked if he ever authorized the sale of said bonds, to. which objection was made that it was immaterial, unless it was shown that J. W. Brooks sold the bonds, and in that event, it would be a personal transaction, concerning which witness would be incompetent to testify, under Section 4604. The court sustained the objection.
Mrs. Ellen Brooks, wife of appellant, testified that she was present with her husband at the bank “at the time there was a conversation between my husband and J. W. Brooks, in which
E. P. Eastman, a wholesale furniture dealer, testified that he was interested in two banks in Burlington; that he was familiar with the manner in which the United Flour Mills Company was wound up; that he was one of the committee of the bondholdei’s that took hold of the affairs of the company when the company became insolvent; that he was oxxe of the bondholders’ protective committee of the National Flour Mills Company;' that a large majority of the bonds of the United Flour Mills Company were deposited with the committee, and they foreclosed the mortgage on the property, and bought the property in, held it for some time, and disposed of it, and distributed the proceeds to the bondholders; that there was realized about 60 per cent; that noxxe of the bonds were guaranteed; that he (Eastman) bought his bonds from the Continental & Commercial Trust & Savings Bank of Chicago. Witness was asked if, at the time he purchased his bonds, anything was said about a guarantee. Objection to the question was made and sustained. The answer was taken down in the record that:
“They did not guarantee them. Why, I know there was nothing said aboxxt the bank guaranteeing. The bank never guarantees. ’ ’
The answer was stricken, on motion of appellees’ counsel. Witness was asked whether the bonds would have been good for their face value if they had been guaranteed by the Continental & Commercial Trust & Savings Bank of Chicago. Objection was interposed and sustained, but the answer was permitted to appear in the record. The answer was, ‘ ‘ They would have been good if the Coxxtinental Bank guaranteed them. ’ ’
Ye find no reason to disturb the judgment of the court below, and it is affirmed.- — Affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.