21 D.C. 59 | D.C. | 1892
delivered the opinion of the Court:
The defendants Denison and Cushing are sued in their own right; and Denison and Cone, as trustees in a deed of trust from the complainant, of the 13th day of May, 1887. The complainant charges that in May, 1887, she called upon the defendant Denison, a real estate agent, with whom she had no previous acquaintance, informed him she had money to invest, and requested him to act as her agent in its investment in the purchase of real estate in the District; that thereupon Denison undertook to advise with the complainant as to what would be prudent investments, and informed her he thought he could purchase for her certain lots lying near Mt. Pleasant, in the District of Columbia; and exhibited a plat of the land, which had been laid out in lots by Leighton and himself as trustees; that thereafter Denison took her out Sixteenth street extended, to show her the lots he advised her to buy, and when they arrived at the property explained that the lots were located on the west side of Sixteenth street; and, with the map before them, from a point on that street where the vehicle in which they had driven was standing, pointed out to complainant a level plateau, west of Sixteenth street and fronting on Kenesaw avenue, and told her that lots which he advised her to buy, numbered 82, 83 and 84' in the sub-division, were located on that level plateau; that the lots then pointed out by Denison, were eligibly and beautifully situated upon the said plateau fronting south on Kenesaw avenue, and as described and pointed out at the time by Denison were in full view from the point on Sixteenth street extended at which the vehicle then stood; that although the land which consisted of parts of Mt. Pleasant and Pleasant Plains had been sub-divided and plotted by the said trustees, yet on the ground itself there were no marks or stakes by which the location of any particular lot could be definitely distinguished
That when the note for the first deferred payment became due she paid it to Denison, and has paid the interest semiannually on all the notes for deferred 'payments up to November, 1888, from the date of the sale in May, 1887; that resting satisfied the lots she had bought and for which
Mrs. Cushing, in her answer,, stated she had formerly owned the lots described in the bill, and that the same were sold to' the complainant and promissory notes executed, money paid and deed passed; that the sale was conducted by Denison as her agent, and was fairly and honorably conducted; .that he had no interest, except as her agent, in said lots or any of them.
Denison answered, admitting he was in the real estate business as alleged; that in the spring of 1887 the complainant called upon him and expressed a desire to purchase
He admits the purchase of said lots, but says he was never employed to act as the agent of the complainant; that in selling her the lots he was acting as the agent of the defendant Cushing, and the complainant was so informed; that this defendant had no interest in said lots or the sale of the same, excepting the ordinary commission for making the sale, as the real estate agent of the defendant Cushing; that at the time of making such sale to the complainant, one House of Congress had passed a bill for the creation of a park along Rock Creek, which would be in the immediate vicinity of the said lots, and real estate in that vicinity sold very readily for good prices, and if he had not sold the lots to
He denies that he ever misled, deceived or defrauded the complainant in any manner whatsoever; says the said lots are valuable property; that they do not lie in a gorge, and it would not cost more than the price paid for them to fill them and make them available; that he is informed and believes, and so charges the fact to be, that after this defendant’s wife had taken the complainant to see the property, he took the complainant a second time to see it; that they went upon the' ground, and with the plat of the property before them, the street called Kenesaw. avenue was pointed out to the complainant, and a fence bounding the west side of said lots was shown to her, and she was informed that the lots fronted south on said avenue, and were on the west side of said plat next to the fence; and the defendant alleges that neither by concealing, misdirection, deceit, nor in any other manner, did he mislead, cheat, deceive or defraud the complainant, intentionally or knowingly; that the negotiations and sale were open, fair and honorable on his part.
The case was heard below on the pleadings and testimony, and the bill dismissed; and the propriety of that action by the judge below is the question now before us.
The testimony was voluminous, and applies to all the points presented by the contestants.
First. It was contended the complainant was deceived by Denison’s statements as to the value of the lots in May, 1887, and that thirty cents was a grossly excessive valuation. Seven witnesses were examined as to their value on behalf of the complainant. The statement of John A. Settle, a real estate agent, is that he would not then have given five cents a foot for the lots, and that their present value was no higher. Rudolph H. Evans says no portion of the lots is available for buildings, and that they were worth less than five cents. Mr. Leighton, one of the trustees who made the sub-division, and who sold the lots to Mrs. Cushing, in March, 1887, testified (after Mrs. Cushing and Mr. Deni
The average of all the estimates would place the value in May, 1887, at ten cents a foot, instead of thirty cents, which Denison assured the complainant was cheap for the lots.
When the extreme western limit of the land is reached, where lots 82, 83 and 84 are located, their southern front is shown to be forty feet lower than the point of intersection of Sixteenth street and Kenesaw avenue. A large part of their area lies in a ravine, which begins about 180 feet from that point of intersection. The first lot west of the top of the ravine lies just below the average trend of the land; the succeeding lots to the west continue to fall off, until the three lots in question are, reached, on the western extremity of the sub-division, where the bed of Kenesaw avenue is at least forty feet lower than the starting point. So that if Kenesaw avenue alone were filled up to grade at its western limit, it would be forty feet higher than the western portion of these lots; and to build on them after the filling 'of the avenue, would necessitate their being filled to its level. There is -no conflict of testimony upon this point.
The complainant and Denison agree that Mrs. Battelle expressed the wish to examine the lots before she should make the purchase and that he took her out in a carriage to show them to hei*. She swears that he halted it on Sixteenth street extended, a little south of the point of intersection of that street with Kenesaw avenue, and from that place professed to point out these lots, as lying in full sight and on a level plateau. It is testified by Mr. Looker, and illustrated by his map, that a person sitting in a carriage, at the point referred to, at six feet above the surface of the road, would be unable, in consequence of the falling off of the ground from that point, to see any part of these lots except a high mound near the extreme north boundary of the most eastern lot — No. 84. Looker further states that the same is true as to every point on Sixteenth street, between Kenesaw avenue and a point 265 feet north of the intersection; and that, until that distance has been traversed, there occurs no place from which one can see, from Sixteenth street, any part of either of the three lots, except this mound on the eastern end of the land.
Mr. Denison denies that the point from which he first showed the lots to Mrs. Battelle was on Sixteenth street at all. .But he admits that, on what he calls his second visit, he did show her the land from a position in that locality. His testimony, on cross-examination, is as follows:
“ Q. You have stated that you drove out a second time with Mrs. Battelle. When was that? — A. It was after the first time. Q. How long? — A. I do not remember how long. Q. Have you any idea; can you tell whether it was a day, a week or a year afterwards? — A. I cannot tell; I know it was not a year by a good deal; I cannot tell how soon it was. Q. State what was the purpose of the drive the second time. — A. She went out and looked around in*69 that direction and drove out that way to this sub-division through Mt. Pleasant. Q. Where did you start from with Mrs. Battelle? — A. I am not certain whether we started from the office or from her house. Q. Who drove with you when you went’with her this second time? — A. I think her two daughters were with her; I drove the carriage myself. Q. What course did you take? — A. Well; I could not state exactly what course' we did take to go out. Q. Did you stop anywhere on that drive to look at the property?- — -A. Yes, we stopped at Sixteenth street extended. Q. Where did you stop? — A. We stopped somewhere near Kenesaw avenue', I think we drove on beyond and came into Park street, as near as I can recollect; I think we drove around Pierce Mill and returned to her home by Tennallytown and Woodley' Inn road. Q. What was your object in stopping near Kenesaw avenue on Sixteenth street ? — A. I think she wanted her daughters to see where the lots were. She pointed and said, ‘there are my Kenesaw avenue lots/ or something to that effect to the daughters.”
And yet, according to Mr. Looker, as we have seen, it is utterly impossible for anybody occupying the position thus described, to see any part of these lots, except the mound near the northern boundary of the eastern lot. Mrs. Battelle, however, denies that she ever made a second visit to the locality with Denison, and her daughters swear positively they never took such a drive as is referred to, or any drive with Mr. Denison.
If Denison made but one visit to the land with Mrs. Battelle, then his testimony above quoted sustains her as to the spot from which he professed to point out the lots.
Denison’s testimony, as to what he calls the first visit, is that after they had reached Kenesaw avenue, they drove to the west of Sixteenth street, upon some vacant land south of Kenesaw avenue, to a point about one-third or one-half the distance between Sixteenth street and the western boundary, and from there he showed her the lots.
In his answer, filed at a time much nearer to the time of
It is impossible this witness could have been* looking at these lots, if he saw ho ravine, unless every other witness in the case is mistaken as to their location, except Mr. Denison, who in his testimony says: “I don't think there is a ravine there. I think it is below.” This was a repetition of a previous statement by him, soon after the bill was filed, which will now be noticed.
Among the witnesses examined for the complainant was a reporter, who produced his notes of an interview with Mr. Denison immediately after a newspaper publication of the substance of the bill; and testified to their accuracy. Deni
Upon the whole case, after giving every possible allowance to the testimony on the other side, we cannot doubt that Mr. Denison professed to point out the location of the lots to Mrs. Battelle from a point from which it has been made perfectly apparent they could not be seen. As one of the trustees, it was his duty to have acquainted himself with the location and character of all the lots he was intrusted to- sell. The previous difficulty of selling these particular lots would naturally have brought them especially to his notice — particularly as he had caused them to be conveyed to Mrs. Cushing two months before. It is almost impossible to believe he was ignorant of their situation and defects. If he suppressed his knowledge to deceive her, his act was a conscious fraud. And it is of course settled that where statements, designedly false, have been made by one party to a contract, to the injury of another, who has accepted and acted upon them as true, to his injury, relief will be afforded in an equity court against its enforcement upon the ground of the absolute fraud, and rescission will be decreed. On the other hand, if, as his answer avers, he had no more knowledge or means of knowing the precise location of the lots than any one else who might examine the plat, why did he not tell her so? Why did he go out there at all, unless he was able to comply with her reasonable request— to be allowed to examine the property in which he was advising her to invest $9,000? If he pointed out property, not knowing whether he was right or wrong, his legal culpability was as great if she was deceived by his statement, as if he had sinned against knowledge, instead of in its absence.
Third. It is held not to be necessary that fraud should have been deliberately practised by the party relying upon
Again: “ The rule in private sales, of caveat emptor, has nothing to do with the case; that rule applies only in the absence of fraud. The truth is, the maxim of caveat emptor, in the light of the later and better authority, has been overworked. The rule of law, obscured somewhat in the application of that maxim, is simply this, that both parties to a contract, whether of sale or not, must act the part of prudence; nothing more is required. In the absence of any misleading word or act by the opposite party, this rule re
Schwenk vs. Naylor, 102 N. Y., 683, was the case of a sale of land with question of the location of the line. “ The plaintiff saw it before him, but was not bound then and there to examine the title, especially when the defendant professed to know all about it, and the extent of the property.”
In Redgrave vs. Hurd, 20 Ch. Div., 1, it was said: “Where one person induces another to enter into an agreement with him by a material misrepresentation, which is untrue, it is no defence to an action to rescind the contract, that the person to whom the representation was made had the means of discovering, and might with reasonable diligence have discovered that it was untrue.”
So where the injured party might have learned the representations were false by searching the records of the Patent Office; as in McKee vs. Eaton, 26 Kan., 231.
In Starkweather vs. Benjamin, 32 Mich., 305, the court said: “ It is no defence to an action for fraud in misrepresenting the quantity of land in a parcel the defendant is selling the plaintiff by the acre, that the latter saw the land and was as able to judge of its size as the defendant. A positive assurance of the area of a parcel of land made under such circumstances, is very material, and if it be false, and the vendee is deceived by it, he has a clear right of action for the fraud.”
In Walsh vs. Hall, 66 N. C., 243, it was held that “A purchaser of land is not required, in order to guard against the fraudulent misrepresentations of a vendor, to have a survey made.”
And in Holland vs. Anderson, 38 Mo., 55, it was said, “ Fraudulent misrepresentation and concealment by a vendor of land as to nature, quality, quantity and situation, affecting
There is much justice in the position’ assumed by the court in Hale vs. Philbrick, 42 Iowa, 81: “ We are not inclined to encourage falsehood and dishonesty by protecting one who has been guilty of such fraud, on the ground that his victim had faith, in his words, and for that reason did not pursue inquiries which would have disclosed the falsehood.”
“ If the omission to prosecute the examination fully was due to the opposite party’s representations or other acts, that omission cannot be charged against the injured party. It is enough that they were calculated to induce him to rely upon them, and that he did rely upon them.” Bigelow on Fraud, 525:
Fourth. The complainant further insists upon the rescission of the contract, because Denison, while professing to act as her agent in the transaction, was also acting as the agent of Mrs. Cushing; invoking the elementary principle, that if one undertakes to make sale of property as agent of the owner, he cannot at the same time act as agent for the purchaser. The duty and interest of the seller being to insist upon the highest possible price, while the interest of the purchaser is to obtain the property at the lowest rate, the agent cannot serve two masters in such a transaction except to the manifest injury of one or the other. That Denison allowed Mrs. Battelle to understand he was acting as her agent we think is established by the weight of the evidence as to the transaction itself, and by his subsequent conduct. Mrs. Battelle' swears positively she employed Mr. Denison as her agent to invest her money; telling him explicitly she wished him to act in that capacity and purchase land for her; that she had no other agent in the transaction; that he had received from her no other appointment as agent, although he repeatedly paid the taxes on These and other lots he, as her agent, purchased for her subsequently; that confiding in his advice as her man of business, instead of “drawing off” her money from the North in sums of $5,000 per month to
Mrs. Battelle on two occasions, when he presented his account of receipts and disbursements/ said to Mr. Denison she saw no charge made therein for his services, to which he replied, “ Oh, never mind that now.” As she expected him to sell the property for her and then pay himself, she did not then press the matter further. But even if he had no purpose to make a charge for his services, he would equally be liable for loss to her through negligence or misconduct, if he undertook to act as her agent. Williams’ Exr. vs. Higgins, 30 Maryland, 404.
Surely under the circumstances the complainant was justified by the acts of Denison in concluding he was acting as her agent in the transaction in question, and we believe he really assumed to do so. ,
There are many facts testified to in the case to which we
Without prolonging the discussion further, we are satisfied we should grant the relief asked by the complainant, and shall sign a decree to that effect.