Sensfelder v. Stokes
Sensfelder v. Stokes
Opinion of the Court
The opinion of the court was delivered by
This is an action of tort to recover damages for alleged fraudulent misrepresentations made by the defendants to the plaintiff. The plaintiff having obtained a verdict, a rule was granted requiring her to show cause why
The gist of the plaintiff’s case is that she was the owner of a hotel property of considerable value, and that the defendants induced her to exchange it for $1,100 in cash and $11,-000 par value of the stock of the Investors Company (a corporation owned and controlled by the defendants) by falsely and fraudulently representing to her that the company owned certain lands of large value, had cash assets and had been paying substantial dividends; that these representations were false and known by the defendants to be so, and that the stock received by her in exchange for the hotel property was entirely worthless.
The plaintiff did not claim to have rescinded the transaction. O^he contrary, tire action was based on an affirmance of the exchange of properties as valid and binding, the plaintiff claiming damages simply for the deceit. It was on that basis that the trial judge undertook to submit the case to the jury.
At the same time it appeared in evidence that some time after tire plaintiff conveyed her hotel to defendants and received from them the stock in exchange, some negotiations took place between her and the Investors Company, or its representatives, looking towards a surrender to that company of her shares of stock in exchange for some of the lands owned by the company. The great weight of the evidence showed that this exchange had been carried into effect, the plaintiff having transferred her stock to the company and having received through an agent deeds of conve3rairce made by the company to her. This transaction was closed before the commencement of the suit.
The trial judge ordered an’amendment of the pleadings by directing that the defendants file a special plea setting up that before the bringing of this suit the plaintiff had parted with all right, title and interest in her shares of stock, and ordered that the trial proceed upon that issue. And in his charge to the jury the judge instructed them that before con
Plaintiff’s counsel did not assent to this instruction, but, on the contrary, noted an exception thereto-. The ground of this protest doubtless was that inasmuch as the plaintiff was not seeking to rescind the exchange made between her and the defendants, she was not obliged to hold herself in readiness to restore to them that which she had received from them in the exchange ; that as she had affirmed the exchange she was -entitled to deal with the stock as her own for all purposes, and if she had subsequently transferred it to the Investors Company for a consideration she was only doing what she had a right to- do with her own property, and did not thereby disable herself from recovering damages from the defendants for their fraudulent representations. With this contention of the plaintiff it would not be difficult for us to agree. But that consideration cannot move us to sustain the
Because the verdict of the jury is contrary to the great weight of the evidence upon an issue that the trial judge instructed them must be controlling, the verdict will be set aside and a new trial granted.
Reference
- Full Case Name
- ELIZABETH SENSFELDER v. EZRA STOKES AND JOHN G. MacELROY
- Cited By
- 6 cases
- Status
- Published