May v. Magee
May v. Magee
Opinion of the Court
delivered the opinion of the Court:
The second plea, as amended, was substantially good, and the demurrer should not have been sustained to it. It might have been, in some respects, more formally drawn; but it clearly sets up fraud in obtaining the execution of the instrument which was the foundation of the suit.
The plea is claimed to be defective because it does not show what matters were in difference between the parties at the time of the settlement.
The plea avers that the parties settled their accounts with ■ respect to the farm in the declaration mentioned, and allowed damages for the surrender of the possession. The writing was evidently executed for these matters. Such is the legal intendment from the averments in the plea. There could have been nothing else to constitute the consideration of the agreement.
It is further contended that the plea does not negative the averment in the declaration that the plaintiffs had surrendered the farm to defendant, and he had accepted it, and there was no offer to restore the same to plaintiffs, and place them in statu quo.
The averment, in this regard, might be improved, and made more explicit; but we think it is sufficiently certain. In the conclusion of the plea, it is averred that, upon information of the false and fraudulent representations, and while plaintiffs were still in possession of the farm, and before any performance of the contract on their part, the defendant repudiated the same, and notified the plaintiffs that he would not be bound by it; and that they then 'abandoned the farm, and announced their determination to enforce the contract.
The only averment of performance on the part of the plaintiffs was the surrender of the possession. The express undertaking on the part of the defendant was to pay a certain amount of^money, and, impliedly, to accept the possession. The settlement, however, as to the surrender, possession and payment, was an entirety. Payment could not be enforced of the money without a surrender of possession. This view of the contract has been taken by the pleader, and he has averred in the declaration full performance by plaintiffs in the surrender of the farm.
Does not the plea negative the averment of surrender and acceptance? It expressly avers that plaintiffs were in possession when the contract, in their presence, was wholly renounced for fraud, and that they then abandoned the farm. This must be regarded as a distinct denial of the declaration. If the plea be true, there could not have been a surrender and acceptance, in the sense of those words as used in the declaration. The defendant could not disavow the contract and at the same time accept the possession. The acts were incompatible.
There was not negligence on the part of the attorney in fact which would relieve of the alleged fraud. The principal was absent from the State, and the attorney did not omit proper care and prudence in not writing to his principal, and awaiting a reply as to the truth or falsity of the statements made.
The agent met the plaintiffs, in the absence of his principal, and was informed as to their knowledge of the matters to be adjusted. He relied upon them, trusted in their truth, and was induced, by their false and fraudulent statements, to make the contract.
He had the right to rely upon their assertions. There was nothing to create suspicion, and the law does not require that, without any cause, we should indulge in mistrust. It does not encourage constant doubt, which would destroy all confidence in the existence of honor and honesty.
The plea avers that the parties, when they met, did not have equal knowledge of the facts, and that the false and fraudulent representations of the party possessing superior information were made to induce a settlement. The object was accomplished. ' Should the plaintiffs complain because reliance was had in their veracity? Can the confidence reposed excuse or lessen their fraud ?
We think that the plea is certain to a common intent, and that replication should be made to it.
The judgment is reversed and the cause remanded.
Judgment reversed.
Reference
- Full Case Name
- Aaron E. May v. James Magee
- Status
- Published
- Syllabus
- 1. Fraud in obtaining the execution of a contract—misrepresentation to agent. Where the plaintiffs, in making a settlement of differences with the defendant through the agent of the latter, who was unacquainted with the real facts, the defendant being absent from the State, misrepresented material facts, and claimed pay for services which had been paid them, and thereby induced the defendant’s agetit to execute an agreement that defendant should pay them money not due them: Held, that the fraud and misrepresentation of plaintiffs, whereby they induced the agent to make the contract, presented a good defense to an action on the same. 2. Same—negligence on the part of the agent. In such a case, as the agent of the defendant did not have a knowledge of the facts, he was not guilty of negligence in relying upon the representations of the plaintiffs. He was not bound to wait and write to his principal, and await his reply, to ascertain whether the representations were true or not, but had a right to rely upon them as honestly and truthfully made. 3. Pleading—plea of fraud in promring an obligation to pay money on settlement. Where the agreement sued on, and which was set out in hwc verba in the declaration, showed that the same was made to settle all matters in difference between the plaintiffs and defendant, growing out of their prior contract in respect to a farm of the defendant, and improvements made thereon, a plea by the defendant, showing that plaintiffs induced his agent to execute the agreement through fraud and misrepresentation of the facts, alleged that the parties settled their accounts with respect to the farm in the declaration mentioned, and allowed damages for the surrender of the possession: Held, that the plea was not defective in not showing what matters were in difference between the parties at the'time of the settlement. 4. Plea—negativing amerment in-declaration. Where the plaintiffs sued upon an instrument for the payment of money, which required them to surrender the possession of a farm as a condition precedent to their right of recovery, and alleged that they had surrendered the same to the defendant, and he had accepted the same, and the defendant, by his plea, set up fraud and misrepresentation to avoid the agreement, it was contended that his plea failed to negative such surrender and acceptance by him, and showed no offer to restore the same. The plea alleged that as soon as defendant was informed of the fraud, and while plaintiffs were still in possession, and before any performance on their part, he repudiated the ■ contract sued on, and notified plaintiffs tnereof, and that they afterwards abandoned the farm and announced their determination to enforce the contract: Held, that the plea was sufficiently certain in negativing the fact of the surrender and acceptance of the farm.