Kreamer v. Smith
Kreamer v. Smith
Opinion of the Court
Opinion by
The defendant, E. H. Smith, bought with ample opportunity to investigate the condition of the goods, and to ascertain their value. In making the inventory on which the purchase price was based lie had the assistance of an expert in the business, selected by himself, and acting in his intei’est. Prima facie,therefore, it was a case for the application of the ordinary rule of caveat emptor. Nevertheless it may be conceded that if he had subordinated his own judgment to that of his vendor, and the latter put himself in a position of confidence, the defendant may show that fraud or imposition was practised upon him. But the evidence under such circumstances ought to be clear.
The items of fraud relied upon by defendants are seven in number. The first three are that the cost marks on the jewelry were changed and made higher, and also on certain umbrellas and hats. The sum total of jewelry in the inventory was $8.79, the alleged overcharge in the umbrellas amounted to $1.83 and in the
These were all the items of complaint that the ingenious and energetic counsel of defendants could succeed in putting together. The purchase price of the whole stock in the store was $2,200. Smith went into possession and made sales which he testified amounted (apparently up to the time of trial) to $1,300, and that “ according to Mr. Lutz there is about eleven hundred dollars there yet, but according to Mr. Kronenberg and Heffelfinger ” (experts who had made a subsequent inventory for defendants), “ about three hundred dollars.” This would seem to indicate that on a sale of about one half of the inventory there had been a profit of 8200, or even allowing for some replenishing of stock rather vaguely testified to, that at least there had been no loss. In view of this testimony, of the insignificant amount of the alleged alterations in cost marks, the failure to show any loss on the specific goods complained of, and the general circumstances of the sale, the learned judge below at the end of the trial reached the conclusion that a finding of fraud or deceit could not be sustained, and accordingly directed a verdict for the plaintiffs. We have not been convinced that he was wrong in so doing. The defendant may have made an
Judgment affirmed.
Reference
- Full Case Name
- Louis Kreamer, Louis F. Kreamer, Louis F. Grebe and W. D. Hunter, trading as Louis Kreamer & Company v. William Smith, Jr., and E. H. Smith
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Contract — Sale of stock of goods — Fraud. In an action to recover the purchase price oí a stock of goods sold by plaintiffs to the defendant, it appeared that in making the inventory on which the purchase price was based defendant had the assistance of an expert in the business, selected by himself, and acting in his interest. Defendant alleged that fraud had been practised upon him in the sale. There was evidence that the cost marks on a few articles of jewelry had been raised, but the aggregate amounted to only about $2.00. It was also alleged that cost marks on clothing had been raised, but there was no proof as to the amount of the increase. It was also alleged that worthless goods had been introduced into the stock before the inventory, but there was nothing to show that any more was charged for these goods than the agreement called for. It appeared that the defendant sold half of the goods for a profit of about $200 over and above the half of the inventory. The evidence as to the value of the remainder of the goods was conflicting. Held, that it was not error to direct a verdict for the plaintiffs.