Billings v. Johnson
Billings v. Johnson
Opinion of the Court
On February 9, 1922, the plaintiff purchased of the defendants 1,230 shares of the capital stock of the Chic Ladiwear Company for which she gave a real property mortgage for $6,000 and a stock of merchandise which she valued at $2,500. This action, based on fraud, is for the cancelation of the mortgage and notes and the return of the merchandise. There were findings for the plaintiff and the defendants appeal from the order denying their motion for a new trial.
The fraud of which the plaintiff complains is the misrepresentation of the amount of the debts of the corporation and a misrepresentation to the effect that payment had been made for the machines in the company’s factory necessary for the conduct of the business. The evidence is conflicting. A finding that there was no fraud would be sustained. The evidence sustains the finding of fraud made, and the finding that the plaintiff relied upon the misrepresentations. The question was one for the trial court and the finding is conclusive on review.
On February 20, 1922, the plaintiff tendered the corporate stock to the defendants and demanded a return of the merchandise
When the defendants refused to accept a rescission the plaintiff was justified, if she proceeded fairly and reasonably, in making an effort to do something with the business. She was not obliged to abandon the tangible property which her corporate stock represented. In the absence of a finding that the property was wasted after the rescission, or of evidence requiring such a finding, it cannot be held that the tender was unavailing or not kept good or the proffered restitution insufficient. Clark v. Wells, 127 Minn. 353, 149 N. W. 547, L. R. A. 1916F, 476; I. L. Corse & Co. v. Minnesota Grain Co. 94 Minn. 331, 102 N. W. 728. The facts are quite unlike those in Dassler v. Rowe, 91 Neb. 637, 136 N. W. 846, and Speicher v. Thompson, 141 Mich. 654, 104 N. W. 1104, upon which the defendants rely. We are not disposed to disagree with them; In each there was a dealing with the corporate property or a continuance of the corporate business after the discovery of fraud and a later attempted
Order affirmed.
Reference
- Full Case Name
- BELLE H. BILLINGS v. ELMER G. JOHNSON AND ANOTHER
- Status
- Published