Banner Cigar Manufacturing Co. v. Treusch
Banner Cigar Manufacturing Co. v. Treusch
Opinion of the Court
(after stating the facts).
“If you find those claims of the plaintiff established to your satisfaction, as a matter of law it was Treusch’s duty to have informed Mr. Idema of Lustig’s indebtedness to himself, and any other indebtedness he knew Lustig to be owing; and his failure to do so cannot be excused because Mr. Idema did not ask him about it. Treusch would then be in a position where it would be his duty to speak.”
The objection made to this is that there was no evidence to show that Mr. Idema asked Treusch about Lustig’s indebtedness, but only asked him to state what Lustig had in his business. Mr. Idema testified that he asked Mr. Treusch for a statement of Mr. Lustig’s financial condition, and—
“ He turned me over the books, and I copied this statement from the books. * * * Treusch told me that Lustig had in the neighborhood of $8,000 to $10,000 capital in his business. On this statement I gave Lustig a rating of from $5,000 to $10,000. * * * Three months*267 before Lustig failed, I had a talk with M. H. Treusch. Treusch said he had no reason to change his former opinion.”
There was evidence to show that Mr. Treusch knew all about Mr. Lustig’s financial condition, and knew the purpose for which Mr. Idema interviewed him, and that his representations were to be made the basis for the commercial rating of Mr. Lustig. Mr. Lustig at that time was worth practically nothing, and the jury would be justified in believing that Mr. Treusch knew it. The court' properly held that Mr. Treusch was in a position where it was his duty to speak. Mr. Treusch must have known that, without a statement of his indebtedness, Mr. Lustig could have no sound basis for a commercial rating. The bare reference to his books, which showed a capital of about |8,000 aside from debts, was as deceptive as would have been a positive statement.
Judgment affirmed.
Reference
- Full Case Name
- BANNER CIGAR MANUFACTURING CO. v. TREUSCH
- Status
- Published