Dutton v. Pyle
Dutton v. Pyle
Opinion of the Court
Opinion by
In April, 1889, the defendants, who were engaged in business as private bankers and brokers in West Chester, in this state, sold to the plaintiffs three mortgages, given on as many different properties in southwestern Kansas by the respective owners. These mortgages, which were accompanied by bonds, had been purchased, with others, by the defendants, in the ordinary course of their business, and were by them held for sale. One of the obligations was to secure the payment of $400; another $250; and the third, $400. Each bore interest at the rate of seven per centum per annum. The transaction, so far as it relates to the purchase by the plaintiffs of the first and second, forms the basis of this suit. The payment of each bond was guaranteed, by indorsement, by the Southern Kansas Mortgage Company, which was at the time, so far as the evidence shows, a solvent concern.
For awhile the interest was paid on the loans, then default was made, and finally, on April 3, 1894, tins action of trespass
The plaintiffs’ proof fell so far short of this standard that the learned trial judge very properly directed a nonsuit. In the first place, they utterly failed to show that, in 1889, any one of the mortgaged properties was not held by good title, and was not substantially as valuable as represented. Secondly, the evidence, instead of showing recklessness, bad faith, fraud, or deceit on the part of Pyle, rather tended to prove that, at the time, he believed and had reason to believe all that he said. As to the alleged personal warranty or guarantee of the defendants, if it were given, which is denied, it is clearly within the statute of frauds and not enforceable as a contract: Maule v. Bucknell et al., 50 Pa. 39, and there'is nothing, in the evidence, to sustain the view that it was any part of a scheme to defraud.
The truth of the whole matter, so far as it is inferable from the meager evidence, probably is, that owing to the years of drouth in southwestern Kansas, farms and villages were deserted and abandoned, lands became in many localities almost valueless, and the plaintiffs, in common with thousands of other eastern investors, including even many of the shrewdest bankers and money lenders, who were seeking large interest, shared in the resulting misfortune. The evidence, including that which was rejected, is not sufficient, however, to show that in 1889, the part of Kansas referred to had reached the condition above depicted, or that the defendants did not honestly believe that the particular investments, made by the plaintiffs, were not safe.
The first assignment of .error need not be considered, as no exception or writ of error lies to the entry of a compulsory non-suit : Haverly v. Mercur, 78 Pa. 257. The second is overruled for reasons already given. As to the third, we fail to see how the answer to the question, “ Have you ever had any trouble in
Judgment affirmed.
Reference
- Full Case Name
- H. Dutton Trustees of Ivanhoe Lodge, I. O. O. F., No. 432 v. Abner Pyle and Thos. B. Brown, trading under the firm name of Pyle & Brown
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Fraud — Misrepresentations—Essentials to establish cause of action. Eraucl must be proved; merely to arouse a suspicion thereof is not enough. To support an action, based on fraudulent inducements to plaintiff to purchase certain mortgages, it must be shown clearly that defendant made the alleged misrepresentations knowing them to be false, or with such conscious ignorance of their truth as to be equivalent to falsehood. Evidence — Action based on fraudulent misrepresentations inducing purchase. In an action based on alleged fraudulent misrepresentations as inducing the purchase of certain Kansas mortgages, it was not error to rejept an offer to prove trouble in collecting interest or principal, or to prove that at a remote period defendant had condemned all Kansas mortgages, or to show by a certain banker that witness had never loaned money in western Kansas.