Kleine Bros. v. Gidcomb
Kleine Bros. v. Gidcomb
Opinion of the Court
This suit was brought hy appellee, B. Gidcomb, resident of Dallas county, to recover $1,000, with interest, from O. A. Waterman and Howard Kenyon, residents of Dallas county, acting for themselves and as agents of Kleine Bros., and the firm of Kleine Bros., composed of August Kleine, W. O. Kleine, and Walter D. Kleine, residents of Gonzales county. Kenyon was not served, and as to him the suit was dismissed. Plaintiff (appellee) complained that the defendants by false and fraudulent representations, all of which he believed and relied upon, had induced him to enter into an option contract to purchase 20 acres of land in Gonzales county and to part with money and property to the value of $1,000 as a portion of the consideration for said land. The representations complained of as false are, briefly, as follows: That gold, in commercially paying quantities, had been found in a certain well which had been drilled on land in Gonzales county belonging to the Kleines; that at several levels in said *463 well gold-bearing strata had been found which assayed from $5 to $3,670.40 per ton; that many assays had been made, all of which revealed rich gold deposits; that appellants exhibited to appellee tabulated statements represented to be accurate driller’s logs of the said well, and told him that they knew said assays and logs to be true and correct, and that if he purchased land contiguous to the well he would run no risk except the risk that there might be no gold under the particular tract purchased by him. Appellee alleges that he believed these representations and, relying upon them, purchased an option on the 20 acres of contiguous land, knowing that land so proximate to rich gold-bearing properties would be very valuable. But he complains that the representations were false, that there was no gold thereon in commercially paying quantities, and thereby he was defrauded of his money. After their pleas and demurrers were overruled by the court, Kleine Bros, answered by denying appellee’s allegations, and specially that they had made no false or fraudulent representations to any one with reference to gold deposits on said land, nor had they authorized any person to do so for them, and, if any one had made such false and fraudulent representations to ap-pellee, it was done without their knowledge or consent. They also allege that appellee had full and equal knowledge and information ; that he had the same opportunity to examine and investigate the conditions that they themselve.s possessed; that nothing was done to prevent him from making a full and thorough investigation; and that he did in fact make such investigation, and acted in all things upon his own knowledge and judgment. Appellants raise some questions in their answer as to the value of certain stock which composed a part of the consideration paid, but as this stock was delivered and accepted at an agreed valuation, and no complaint is made that both parties were not equally advised of its value, it will be assumed that the stock had the value at which it was accepted. The case was tried without a jury, and the court overruled appellants’ plea of privilege and all their demurrers and upon the facts found for appel-lee against all the defendants for $1,472.87, with interest at 6 per cent, from date of judgment, and all costs except those incurred in making Kenyon a party to the suit.
The fourth and fifth assignments of error must be overruled for like reasons. The evidence, as presented, was inadmissible for the reasons urged at the trial, and it was proper *464 ly excluded, by the court. That the statements of witnesses were elicited by questions propounded by appellee does not alter the rule nor give the appellant any greater privilege.
The fact that Waterman was the agent of Kleine Bros, to sell this land is undisputed. All three of the Kleine brothers testify that he was their agent, and Waterman also stated that he was acting in the capacity of agent. We cannot agree with the contention of-appellants that the agency of Waterman was so limited that his representations would not bind his principals. He was authorized by Kleine Bros, to sell their lands. He was provided with copies of assays and other data indicating the presence of valuable gold deposits on land immediately contiguous to that offered for sale. 1-Ie was sent forth by his principals to seek buyers and in his efforts to sell to appellee he made the statements related by appellee in his evidence. Appellants cannot now be heard to say that this agent, whom they sent forth into the business world with the badge of their confidence and approval upon him, was in fact only their agent so long as he did right. A principal cannot so avoid his liability. If he holds another out to the world as his agent, he thereby invites the people with whom he may deal to place confidence in his agent, and, if the agent violates the confidence within the line of his duty, the principal must repair the wrong. Nor, when the relation of principal and agent has been established, is it necessary, to bind the principal, that the statements of the agent be made in the presence of the principal, or even that he should have knowledge of them. The acts of the agent, in the line of his duty, are the acts of the principal.
No errors being found in the record, the judgment is affirmed.
Reference
- Full Case Name
- Kleine Bros. v. Gidcomb [Fn&8224]
- Cited By
- 10 cases
- Status
- Published