Davidson v. Moss
Davidson v. Moss
Opinion of the Court
delivered the opinion of the court.
TLiis is an appeal from a decision of the chancellor, overruling a motion to dissolve the injunction which had been granted. The motion was made upon the facts in the bill, answer and exhibits. In considering this case, we do not think it necessary to notice any thing which appears upon the pleadings prior to the amended bill. For the matters contained in that bill, and the answer to it, raise the only questions which were discussed by the counsel in the argument, or are material to the decision. These facts are, that since the original bill was filed by the complainant, he has discovered that Davidson, the defendant below, had no title to eighteen of the slaves included in the purchase from him, and that they rvere held by Davidson as trustee merely, for his wife and children, according to the terms of a marriage contract between him and his wife anterior to their intermarriage. This contract is referred to and made a part of the bill. This defect of title was concealed from the complainant by Davidson, who represented that he had at the time of the sale a good title
The answer admits the execution and existence of the ante-nuptial agreement, as stated in the amended bill, but denies all fraud. The respondent states that as he had been so advised by counsel, he thought the contract of no efficacy, and its existence did not occur to him at the time he made the sale. And as evidence of the honesty of his intention and the good faith in which he acted, shows that so soon as he learned that the complainant was dissatisfied, and intended to make that contract an objection to carrying the contract of purchase into execution, by paying the residue of the purchase money, he, the respondent, procured a valid deed of release and confirmation from his wife and his four children, the only persons that are or can by possibility become beneficially interested in the slaves, to be made to said complainant, which he tendered to him, but which was refused. The deed is made an exhibit in the answer, and is admitted to be an extinguishment of the only adverse title to the property. These are the material features of this case, and the simple question which they present for the consideration of the court is, whether they furnish a ground for rescinding the contract either in whole or in part. It is assumed in the argument of the counsel for the appellee, that the allegations of the amended bill which charge a fraudulent representation as to the title of the slaves, and also a fraudulent concealment of the outstanding incumbrance, are not denied in the answer, and must therefore be taken as confessed. The answer denies all fraud, and states as a reason for not mentioning the outstanding title, that he did not deem it of any importance, having been advised that it did not affect his title. The reason stated for the omission to disclose this fact is certainly no excuse in law. For whether it be true or false, is a question which can never be decided by any human tribunal in the present imperfect condition of mankind. It is impossible to explore the recesses of the human heart, and detect the motives by which it acts. Such being the case, the laws of the country have laid down the best practicable criterion in such cases, which is perhaps within the reach of human adoption, by referring to the
The effect of the admission in the answer of the appellant, that he concealed the defect in his title which is complained of, is not at' all obviated by the reason given, that it escaped his memory. In this view, therefore, of the bill and answer, the proposition contended for is unquestionably correct. For no principle is better established, than that fraud vitiates every contract, and so renders it void both at law and in equity. And in the application of this maxim to the transactions of men and their dealings with one another, no difference is taken ordinarily between a false and deceitful representation of a fact, and the fraudulent concealment of a material circumstance, either in regard to the quality or the title of the subject matter of the contract. And hence, when the subject of the representation or concealment is not equally open to the observation of both parties, or the vendee has not equal means of knowledge with the vendor, the latter is bound by the principles of good faith and common honesty, to state nothing but what is true, and to conceal'no material fact connected with the condition of the article. And hence, if there be an intentional concealment of such material fact in cases where both parties have not equal access to information, it will be deemed fraudulent and avoid the contract. 2 Kent’s Com. 2 ed. 482. And hence, if a vendor sell an estate knowing that he has no title, or that there are incumbrances on it of which the vendee is ignorant, and he suppress such a material fact, there is no doubt the vendee may compel a recission of the contract; 8 Story’s Equity, 818-19. For the purchaser necessarily reposes a trust and confidence in the vendor, that no such defect exists. These views regard the transaction as a fraud in fact, and point to the consequences which the law affixes.
It is urged, however, for the appellant, that there are collateral and subsequent facts in the case which explain the mere omission to.communicate the existence of the marriage contract, and fully reconcile the conduct of the appellant with the claims of good faith. They repel the imputation of a fraudulent intent. Amongst others, the circumstances, that the appellee has never been disturbed in the enjoyment of the property; that appellant proposed
There is another point of view in which, however, these facts may have an important influence upon the present case. We allude more especially to the deed of release and confirmation from Mrs. Davidson, the wife of the appellant, and the four children. This deed relieves the title from all difficulty, and in effect does all which it was the intention of the parties ever to do, that is, to - transfer to, and vest in, the appellee the complete unincumbered title to’ the slaves. This would seem to leave him no ground for complaint. But he insists that by the fraud stated in the bill he. acquired a right to insist on the recission of the bargain, and that - he cannot be estopped by this after transaction. It is admitted, that there1 are cases in-which this could not be done, more especially-where the vendee had been prejudiced by the cloud over his title, or where he had evidently sustained an injury if the con-' tract should-be enforced.- Nothing of that kind appears in .this case, however., The appellee was put into possession at the date of the contract, and has continued in peaceable possession ever since, unmolested by the outstanding incumbrance, of which it seems he never heard until after he had commenced this suit, and filed his original bill. If this1 were a proceeding to compel a
The case of Hepburn & Dundass v. Auld, 5 Cranch, 262, was determined on the same ground. The case of Brashier v. Gratz et al. 6 Wheat. 528, arose on a contract for the sale of lands, for the title to which suits were then pending in Kentucky. The sale was in March, 1807. Brashier gave his notes for the purchase money and agreed to attend to the prosecution of the suits. He gave twenty-two dollars and fifty cents an acre. The suits were not pressed to a decision. In 1811, the fees were demanded of Gratz, who paid them. Brashier about this time went to Philadelphia, and his notes being protested for non-payment, Gratz requested him either to pay them or that the contract should be rescinded, Brashier would do neither. He became insolvent, and Gratz took the suits into his own hands, which were decided in his favor in 1813. About this time lands rose suddenly in value, when Brashier tendered payment of his notes, and demanded a conveyance of the land. And under these circumstances, the court held that he was not entitled to a specific execution of the contract. The rule that in equity time is not of the essence of the contract, is not of universal application. Circumstances may be so changed, that the object of the party can be no longer accomplished, and he who is injured by the failure of the other contracting party, cannot be placed in the situation he would have stood if the contract had been performed. Upon the analogy of these cases, we think there is no difficulty in determining the present question. In this case the contract was executed, but that makes no difference so far as the principle is concerned. The contract is fulfilled in this case, and the covenant of title fully kept by the tender of the deed, showing a capacity to convey at any time before a decree. Here there has been no change of circumstances ; uo evidence that the object of the appellee in the purchase has been defeated, or hindered, or embarrassed by the existence of the incumbrance complained of. He is placed by
The decree of the chancellor must be reversed, and the injunction • dissolved. ’ . ;
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