86 Wis. 164 | Wis. | 1893
These cases present phases of human nature not pleasant to contemplate. A man, weak in mind and fond of liquor, falls into the hands of a designing and shrewd man whom he thinks to be his friend. The supposed friend plies him with liquor, plays on his fears as to the action of supposed creditors, threatens and cajoles him, until, in a state of intoxication and not realizing what he is doing, the victim at various times signs notes, chattel and real-estate mortgages, covering all his property, amounting to more than $3,000, without a shadow of consideration. That this constitutes fraud cannot be doubted. If courts cannot relieve against such impositions, they fail in an important part of their mission. But they can and do frequently relieve against just such machinations. Kuelkamp v. Hidding, 31 Wis. 503. See cases cited in the opinion of Dixon, C. J.
In the hands of Boby or his wife these securities were ' invalid for two reasons: First, because made.absolutely without consideration; and, second, because they are the fruit of imposition, oppression, and undue advantage obtained by a cunning, sharp nature over a weak mind. They were conceived in sin and born in iniquity. But it is claimed that they are now in the hands of bona fide purchasers for value, and consequently the defenses of fraud and lack of consideration are no longer available. We shall not detail the evidence bearing on the manner in
It is strenuously denied by the plaintiff James that Barnes was ever his agent for the investment of his moneys, but that he {James) obtained his interest in the securities by deals made by him "personally with Barnes, and without notice of any equities. Even if this were the fact, the plaintiff James, under his own evidence, would not be a bona fide purchaser of the notes not secured by the real-estate mortgage. He testifies substantially that they were turned over to him by Barnes in October or November, 1888, as - collateral security for the paymént of a pre-exist-ing indebtedness owing from Barnes to him, and that two of them, at least, were past due. Under these circumstances he was not a bona fide purchaser of the notes. Jenkins v. Schaub, 11 Wis. 1; Bowman v. Van Kuren, 29 Wis. 219.
There are many circumstances in the case which tend to throw doubt on the direct testimony of Janies that Barnes was not his agent for the investing of money. It seems that James, John, and their mother had funds in the spring of 1888 derived from the settlement of the estate of the father of James and John. The shares of John and the mother were confessedly handed over to Barnes to invest and reinvest. Bonnes was the attorney of the estate, and James was the administrator. James admittedly gave securities to Barnes to collect. The note and mortgage were left in Barnes' possession after the alleged transfer to James. There was direct testimony to the effect that James admitted that Bonnes had all their money to invest. From- all the evidence we conclude that the testimony shows Barnes to have been the agent of James as well as John, and consequently that James is also chargeable with
No other questions require consideration.
By the Gourt.— Judgments affirmed.