Εικόνες σελίδας
PDF
Ηλεκτρ. έκδοση

(2) Deceit. Representation of Fact.

Where the representation is a statement amounting to the positive assertion of an existing fact, the person to whom it is made has the right to rely upon its truth, and is not put to his inquiry; and if the representation is untrue and he is deceived thereby to his injury, negligence which will preclude recovery cannot be predicated on his failure to make inquiry.

TRESPASS ON THE CASE FOR DECEIT. The facts are stated in the opinion. Heard on exceptions of defendant to rulings of District Court. Exceptions overruled.

MATTESON, C. J. This is an action of the case for deceit, brought originally in the District Court of the Sixth Judicial District, in which decision was rendered for the plaintiff, and is now before us on defendant's exceptions to the rulings of that court.

The bill of exceptions sets forth that at the trial in the District Court evidence was adduced in behalf of the plaintiff that the defendant falsely represented to him that the defendant was the owner of certain real estate; that the plaintiff did not know who was the owner of it, and, relying on the defendant's representation, was induced to enter into a contract with the defendant to furnish heating-apparatus for a house situated on the real estate; that further evidence was introduced, in the form of certified copies of deeds, showing that on the date on which the defendant made the alleged false representation that he was the owner of the real estate, the title to it was in the defendant's wife, and that the deeds by which the real estate was conveyed to her had been re(1) corded when the representation was made. The defendant requested the court to rule that the recording of the deeds. of the real estate was constructive notice to the plaintiff as to who was the true owner of the real estate; but the court refused to so rule, whereupon the defendant excepted.

As an abstract proposition, that contained in the request was doubtless correct, Gen. Laws R. I. cap. 202, § 7; but, though correct, the court below was not bound to make the ruling unless it was pertinent to the case. The question,

therefore, presented by the exceptions is whether one to whom a representation is made as to the ownership of land, who does not know the representation to be untrue, and who, relying on its truth, has acted to his loss, is precluded from maintaining an action for the deceit because the true state of the title to the land might have been ascertained by him by an examination of the land records.

The defendant's contention is that, as the record affords constructive notice to all persons of the true state of the title, it is incumbent on him to whom such representation is made, to consult the record and that if he fails to do so he is guilty of negligence, and so cannot recover.

We do not think that this contention can be sustained. The cases relied on by defendant in support of it are not cases of constructive notice, but cases in which the representations made were affirmations of the seller of property as to quality, value, former offers, and the like, which involved not so much facts as matters of opinion and judgment, and which, as said in Brown v. Castles, 11 Cush. 348, it has always been understood the world over are to be distrusted. On such statements a person has no right to rely, and hence, if he acts upon them without inquiry and is deceived, he is without remedy unless he has been prevented from making inquiry by the fraudulent conduct of the other. (2) Where, however, the representation is a statement amounting to the positive assertion of an existing fact, the person to whom it is made has a right to rely upon its truth, and, having the right to rely upon it, is not put to his inquiry; and, therefore, if the representation be untrue and he is deceived thereby to his injury, negligence which will preclude his recovery cannot be predicated on his failure to make the inquiry. In Mead v. Bunn, 32 N. Y. 280, the court remarks; "Every.contracting party has an absolute right to rely on the express statement of an existing fact, the truth of which is known to the opposite party and unknown to him, as the basis of a mutual engagement; and he is under no obligation to investigate or verify statements to the truth of

which the other party to the contract, with full means of knowledge, has deliberately pledged his faith."

Accordingly it was held in David v. Park, 103 Mass. 501, that a distinct statement of fact by a seller known to be false, with intent to deceive the buyer, on which the buyer acts to his injury, will sustain an action of deceit, even if the buyer might have discovered the fraud by searching the records of the patent office. So, too, it was held in Dodge v. Pope, 93 Ind. 481, that one who represents that a mortgage which he offers for sale is the only mortgage of record is bound by such representation, although an examination of the record would have disclosed the existence of a prior mortgage. See also, to the same effect, Tyner v. Cotter, 67 Wis. 482; Evans v. Forstall, 58 Miss. 30; Fargo Gas & Coke Co. v. Fargo Gas & Electric Co., 4 N. D. 219, in which the question is fully considered and numerous cases are collected. And see further Ward v. Wiman, 17 Wend. 193, in which it is held that case lies for deceitful and false representations respecting the title to land in the sale of it, and this, too, though the deed contains covenants of title, the purchaser having the right to treat the deed as a nullity and maintain his action for deceit.

We find no errors in the rulings of the District Court upon the demurrer, which are also excepted to.

Exceptions overruled, and case remitted to the District Court with direction to enter judgment for the plaintiff on its decision.

Terence M. O'Reilly, for plaintiff.

John H. Flanagan, for defendant.

24 269

CHARLES E. GORMAN vs. JOHN J. BANIGAN et al.

PROVIDENCE-MARCH 30, 1900.

PRESENT: Matteson, C. J., Stiness and Tillinghast, JJ.

(1) Discovery. Equity Pleading and Practice.

A bill in equity for discovery, in aid of an action of assumpsit to recover upon
a quantum meruit for professional services as an attorney at law rendered
to the respondents in and about the probate of the will of their father, and
in effecting a settlement with the widow of the testator, alleged that in
order to prove what would be a reasonable compensation for said services
it was necessary to show the value of the entire property belonging to the
estate of the testator; that the personal estate of the testator was vari-
ously involved and jeopardized in said contest with the widow; and that
the respondents, the executors of the will, having been exempted from
filing an inventory of the estate, the complainant had no way of ascer-
taining the extent of the same except by discovery :-
Held, that (1) the bill failed to show any contest, but at the most an antici-
pated contest. (2) Assuming a real contest, the bill failed to disclose how
or why the estate was jeopardized thereby to the extent of enabling the
court to judge thereof. A mere allegation of this sort is not enough in a
bill for discovery. (3) That, assuming an appeal from the probate of the
will and that the will would not have been sustained, the estate could not
have been jeopardized. (4) That, assuming a contest and that the will
would have been sustained, the bill did not disclose any resulting benefit
to the estate thereby.

Held, further, that the action at law stood upon no different footing from the
ordinary action to recover for professional services.

Quare, whether, if the bill had disclosed that the estate was in fact in jeopardy and that the complainant by his skill and ability had rescued and saved it, the general discovery prayed for would have been granted ?

In order to maintain a bill for discovery in aid of a suit at law, it is necessary for the complainant to show that the information sought is relevant and material to the issue or to some issue raised in such suit. He must also show that he is justly entitled thereto as evidence in connection with the preparation and trial of his case, and that such evidence is necessary to enable him fully to prosecute or defend the same.

It is not sufficient for the complainant to allege that the matters as to which discovery is sought are material to the proving of his action at law, but he must state his case in such manner that the court will be able to see how such matters may be material on the trial thereof.

(2) Value of Professional Services.

Manner of determining the value of professional services discussed.

Heard on

BILL IN EQUITY FOR DISCOVERY in aid of a suit at law. The facts are stated at length in the opinion. exceptions of complainant to answer of respondents. tions overruled.

Excep

TILLINGHAST, J. This is a bill of discovery whereby the complainant seeks to obtain certain specific information as to the condition, extent, and value of the estate of the late Joseph Banigan, in aid of a suit at law which the complainant has brought against the respondents, who are the executors on said estate.

The bill alleges that Joseph Banigan died on the 28th day of July, 1898, seized and possessed of a vast estate, both real and personal, and of great value, leaving a last will and testament and a codicil thereto in which the respondentshis four children-were named as executors and residuary devisees; that he left surviving him his widow, Maria T. Banigan, and said children; that on the -day of June,

1898, the respondents, learning that the said widow was dissatisfied with the provisions made for her in said will, and anticipating that she would not accept its provisions and would contest the probate thereof, retained and employed the complainant as an attorney and counsellor-at-law to represent and act for them in effecting an agreement with said widow which would avoid any contest over the probate of said will, and of consulting with and directing them in and about the probate of said last will and codicil. That from and after said day of June, 1898, until the first day of January, 1899, the complainant, at the special instance and request of the respondents, consulted and advised with and performed various valuable professional services for them in and about the probate of said will and codicil, and about certain negotiations with said Maria T. Banigan, and in and about said will and the estate devised thereby, during which time the complainant rendered intricate, difficult, and valuable professional services as an attorney and counsellor-at-law in connection with the probate of said will, and in the nego

« ΠροηγούμενηΣυνέχεια »