6 Wis. 295 | Wis. | 1858
By the Oowrt,
The bill in this case was filed to rescind and set aside two contracts, made and executed on the 28th day of November, 1855, between the appellant and appellee, for the purchase and sale of the latter’s interest, being an undivided one-sixth part of certain real and personal property belonging to the firm of Aldrich, Smith & Co., a firm largely engaged in manufacturing lumber and in merchandising, at Two Rivers, Manitowoc county, and in the transportar tion and sale of lumber thus manufactured, at Chicago. The entire interest of the appellee in all the property and business was sold, and the consideration for the real estate was twenty-five thousand dollars ; one quarter paid down and the remainder was to be paid in three equal annual instalments, to be secured on bond and mortgage, as specified in the contract. The appellant never went into possession of the property, nor gave the bond and mortgage, but filed his biE on the 14th of
“ And your orator being assured by said Medbury, that all “ his representations relative to said Company's property, “ (being those hereinbefore set forth and many others), were “ true, and your orator, confiding in such representations, and “having, at that time, great confidence in said Medbury, as “ a man of truth, made with said Medbury, and executed and “ delivered, the agreements hereinafter set forth, that is to “ say agreements in substance as follows, (except the altera- “ tion hereinafter mentioned.)”
■ Again, the bill alleges, “ That it is not true that from one “ half of said lands, called or represented as pine lands, no “ pine timber, or none of any concequence, had been cut at
“ And your orator, on his belief, charges that said Medbury “ knew at ihe time he made such representations, that they “ were false, as they were in fact; and your orator charges that “said contracts were obtained from him by fdse and fraudu- “ lent representations, and are fraudulent and void, and ought “ to be rescinded, cancelled, and annulled.”
The above allegations are all that we deem it necessary to refer to in order to understand the ground upon which our decision is placed.
The defendant, in his answer, distinctly denies that he represented to the appellant that said lands were good pine lands, and that from more than one half ol them no pine timber, or none of any consequence had been cut; or that he used words to that effect during the negotiations. He says that at the time of the negotiations, between the appellant and himself for the sale and purchase of the appellee’s interest in said firm, the appellee informed the appellant of the situation and position of said property, so far as he know about the same, and of his means of knowledge in relation to the amount and value thereof, and of the business of the firm ; and that it was at all times expsessly understood and insisted upon that the appellant should himself make an examination and personal inspection of the property befo.e any contract should be made. lie further states that he never claimed to have, or gave the appellant to undei stand that he had, any accurate knowledge of the
It is proper to remark that the bill waives an answer under oath, and yet the answer put in was on oath. Whether any greater effect can bo given to this answer than to hold that it merely performs the office of a pleading, distinctly and fully putting in issue all the allegations of the bill, we will not stop to inquire. For, conceding that the general rule applies to this case, that the answer cannot be overcome except by the evidence of two witnesses, or one witness, sustained by strong corroborating circumstances, and still our conclusions upon the case must be the same.
The principles of law which apply to, and govern this case, are accurately and comprehensively stated by Justice Story in in his work on Equity Jurisprudence, section 191, as follows: “ One of die largest classes of cases in which courts of equity are “accustomed to grant relief, is when there has been a misrepresentation, or suggesiio falsi. It is said indeed to be a “ very old head in equity, that, if a representation is made to “ another person, going to deal in a matter of interest, upon “thefai.hof that representation, the former shall make that “ representation good, if jie knows it to be false, divans vs. “ Bicknell, 6 Ves., 173, 192. To justify, however, an inter- “ position in such cases, it is not only necessary to establish “ the fact of misrepresentation, but that it is in a matter of “substance, or important to the interests of the other party, “ and that.it actually does mislead him. For if the misrepresentation was cf a trifling or immaterial thing, or if the “ the other party did not trust to it, or was not misled by it, “ or if it was vague and inconclusive in its own nature; or if “it was upon a matter eqnahy open to the inquines of “ both parties, and in regard to which neither could be pre- “ sumed to trust the other, in these and the like eases, there
“ I know the parties in this suit, I drafted the contracts sot “ forth in the bill of complaint in this cause. Mr. Miner came “ to my office and got me to go over to his office, and there I “found Mr. Medbury. Tlis was on the 27th day ofNovem- “ ber last, the contract was drawn that night and dgned, and “ dated the next day, which was tlie 28ih day of November. “ "When at the office of Dr. Miner, as I before sta'ed, on the “27th day ot November, I found Mr. Medbury there. Dr. “ Miner was also there. Mr. Miner went on to state to me, in “the presence of Mr. Medbury, as to the kind of a contract “which they wanted me to draw, and Mr. Medbury assented “ to what Dr. Miner said. Mr. Miner took out of his pocket “ book, the same book Dr. Farics, the former witness spoke of “ yesterday, and which is herewith returned, from which book “ Dr. Miner gave me the foundation of the contract, with “ instructions how the contract should be drawn, together with “ the data as to the amount of real estate, and village lots and “land. I am confident Dr. Miner stood by me with the book “ open at the place from which lliis statement was given by “Mr. Furies, and copied with his deposition, and went on to “ give mo directions how to draw the contract, taking as I supposed the data of the amount of lands and village lots from “ that book. I gathered from their conversation at the time, that “ Mr. Miner had not seen the land and lots he was buying of “ Mr. Medbury at Two "Rivers, and I asked him if he was buying that property without ever having seen it. Mr. Miner “ answered by giving me a history of the trip, when they “ started to see it, and having failed, and said that Mr. Med- “ bury told him so and so. Mr. Miner said that Mr. Medbury
Further on, the witness testifies in answer to a question as to what was said at this conversation, (if anything,) relative to this purchase being made by the complainant upon the representation of the defendant, that “ The complainant followed “ this statement right up, by saying that Mr. Medbury told “ him the property was so and so, and if it was sncli as Mr. “ Medbury said it was, he was willing to take it, and that he “ took it on the representations of Mr. Medbury. Mr. Med- “ bury was standing by, and said to Mr. Miner, that he would “ find the property was even better than he had represented it.” The character of this witness for truth and veracity stands unimpeached, and his evidence shows clearly and satisfactorily to my mind that the appellee had represented the timber lands to contain fine pine timber, an inconsiderable part of which had only been cut off. Among the data in the memorandum book, is this entry: “ 7000 acres of pine land, $10 per acre.” This circumstance is slight, to be sure; but it indicates what representations had been made by the appellee during the ’negotiations as to the character of these lands, and what timber was on them. Some remarks were made by the counsel for the appellee, on the argument, to the effect that it did net
Let us briefly examine the evidence upon this point. The witness, James M. Sprague, who has been at and near' Two Eivers for the last twelve years, and engaged in the lumber business, says “ that he was overa portion of the Norton tract, “ consisting of 2,700 acres, within a year, and before Novem- “ ber last; that on the portion he was over, the sawing timber “ was pretty much cut off; he went through it; that the road “runs through the tract, and that he had been frequently “ over it, and in other directions along the river; that he did “ not examine it with reference to an examination; that it is a “great job to examine and go over 2,700 acres of pine lands, “ and that the portion he was over was a small portion of the “tract; that he had been over it within the last year; has “ been familiar with this tract for twelve years; hunted cattle “ over it within the last three years; the portion he had been “ over, so far as he had examined, had the sawing timber pretty “ much cut off. As to the Starkweather tract, consisting of “'from 1,600 to 1,800 acres, a portion of it that lies immediately “ along the East Eiver is cut off, and was so cut off last Novem ’ “ ber, and on a portion of it the timber was very fine.” Benjamin F. Sias, who has resided for most of the time for.the last t§n years at Two Eivers, and had almost weekly been over the lands owned by Aldrich, Smith & Co. during that period, says: “ In my opinion about three-fourths of the pine timber origin- “ ally on said lands had been cut off in November, 1855. The “ best of the pine has been taken off. ’ Most of that remaining “ is rather of an ordinary quality. I should think about 25 or “ 30,000,000 feet of common logging pine timber remaining. “ I should judge there had been cut off between 75 and 90,000, “ 000 feet of lumber; from four to six millions feet of lumber “ was taken off last winter, as I should judge.” James Phillips,
John E. Berdsall testified: “I reside in the town of Mishe- “ cott; my business is lumbering and farming; have lived in “ this county six years; know the firm of Aldrich, Smith & “ Co., as a firm; have been over a part of their land in town “ 21; am some acquainted with sections 21, 27, 34 35, but not “ so familiarly with 27 as with the others. Am acquainted
Ilezekiah H. Smith, a witness for the appellee, who was one of the partners of the firm of Aldrich, Smith & Co., and furnished schedule “ A ” which contained a description of 5,920 acres belonging to the firm; “ thinks that, take the lands “ together mentioned in schedule “ A,” more than half of the “ pine had been cut previous to November, 1855.” lie further says: “ Forty acres in section 12, town 20, range 24, is the “ only piece that was nearly or entirely cut over up to the 28th “ of November last; and that 40 was improved and stocked “ down.” And in answer to a question to state the condition of each tract severally, as to pine timber which was contained in the schedule, he states ; “ I can’t do it, as it is impossible; “ on all except that previously described as being the land on “ which no timber had been cut.” (which was some 10 or 1100 “ acres) of any consequence by the firm; there has been timber “ cut so as to injure the value of the land to some extent.”
"William B. Farnum, who was acquainted with the 4,000 acre tract, in reply to a question as to what proportion of tim
Daniel Smith states that “ section 1, town 20, range 23, is “ the best pine timber the company have; a good deal of pine “ had been taken off this before November, 1855, and yet a “great deal of timber is there.”
The above is all of the evidence in the case bearing directly upon the point as to the quantity and quality and character of the pine upon the lands, except the testimony of William Aldrich, who must be, (if we were to judge of his character from his evidence in the case) a man of most sanguine temperament, and of rather extravagant views ; who has certainly given to all the affairs of the firm of Aldrich, Smith & Co. the coulew da rose, and whose testimony it would not be safe to place in competition with that of' the numerous intelligent and reliable witnesses already named, even if his testimony should materially conflict with theirs, as it really does not, and we therefore do not think it necessary to dwell upon it. His testimony does not in the least shake the conclusion deduced from the whole evidence in the case, that these statements as to the pine upon the lands were not true, correct and faithful.
That the misrepresentation was in a matter of substance, important to the interests of the appellant, and which went to the very essence of the contract, probably will not be denied. Here was a proposed investment of the appellant in all of about forty thousand dollars, in a business and principal part of which was the manufacture of lumber. He had bought an interest in expensive saw-mills, and in several thousand acres of what had been represented as fine lauds. Does any one suppose that it was a trifling, immaterial and unimportant thing
It is further insisted that some two months after the execution of the contracts, the appellant went to Two Rivers, saw the steam saw mills, the village property, and had the best possible opportunity to inform himself of the extent, character and value of the business and property of the firm, and that in fact he did make numerous and full inquiries of those who knew more of the property than the appellee even did, or could have known, and actually received information in regard to the extent of the business, the amount of the property, real aud personal, and then afterwards entered into the agreement of the llth of January, 1856, in reference to~the personal property, and thereby ratified and confirmed all that had been clone before. But it is to be observed that at this time the appellant did not examine the pine lands, and that the witness, Aldrich, of whom the a¡:>pellant made inquiries as to the amount of pine on the land, told him “ that we. “ could go on and do the business he had been doing, without “exhausting the pine for fifty years.” There is nothing in the case to show that the appellant ratified and confirmed the contract, alter he was actually informed of the true condition of the pine lands.
For these reasons we are of the opinion that the decree of the circuit court must be reversed and the cause remanded for further proceedings in conformity to this decision.