215 S.W. 957 | Tex. Comm'n App. | 1919
This is an action in damages for false representations made in the exchange of properties. The plaintiffs, W. C. Moore and wife, alleged in their petition that they conveyed certain lots in the city of San Antonio, Tex., to the defendant, Beakley, in exchange for 13 mortgage bonds issued by the Texas Baptist University of the face value of $100 each, and other property not necessary, to describe; that defendant represented to plaintiffs that the bonds were secured by a first mortgage on all of the property of the University; that in truth there were prior liens against' the property, greatly in excess of its value, and the bonds were wholly worthless; that said false representations were fraudulently made for the purpose of inducing plaintiffs to enter into the contract of exchange, and that they woiild not have entered into said contract but for said representations. Plaintiffs sought a recovery in damages in the sum of $1,300. Defendant denied the material allegations in the petition. The trial court, after hearing the evidence, instructed the jury to return a verdict for defendant, and the judgment entered thereon was affirmed by the Court of Civil Appeals. 183 S. W. 380.
The facts, briefly stated, show that R. H. Howard was the agent of plaintiffs., In the prosecution of his agency he succeeded in obtaining from defendant an agreement to make an exchange of properties, whereby the de- ’ fendant was to receive lots Nos. 713 and 717, in block 375, in the city of San Antonio, Tex., and was to give in exehaiige thei’efor two lots, of the estimated value of $2,000, 13 bonds issued by the Texas Baptist University of Dallas, Tex., of the,-par value of $100 each, pay to plaintiffs $1,700 in cash, and execute" his five vendor’s lien notes in the sum of $1;000 each. The trade was consummated as indicated, the necessary deeds and notes were executed, and the 13 bonds were delivered to
The Court of Civil Appeals sustained the action of the trial court in withdrawing the case from the jury, upon two grounds: (1) That the plaintiffs had ample time and opportunity to investigate and learn the truth concerning the bonds before the trade was consummated; (2) that the evidence failed to show that plaintiff suffered any actual damages by reason of the false representations.
In the case of Labbe v. Corbett, 69 Tex. 509, 6 S. W. 811, the court lays down the rule in the following quotation from another authority:
“When once it is established that there has been any fraudulent misrepresentations * * * by' which a person has been induced to enter into a contract, it is no answer to his claim to be relieved from it to tell him that he might have known the truth by further inquiry. He has a right to retort upon his objector: ‘You, at least, who have stated what is untrue * * * for the purpose of drawing me into a contract, cannot accuse me of want of caution, because I relied implicitly upon your fairness and honesty.’ ”
“In the trade I took Dr. Beakley’s equity in ' the $3,500 property, less the $1,500 incum-brance at $2,000. I took the bonds at $1,300. I took the vendor’s lien notes at $5,000; my property was taken at $10,000. The difference between the value of the property which I gave and the value of the property which I received is $1,300.”
We are of opinion, for the reasons stated, that the judgment of the Court of Civil Ap- ' peals and that of the trial court should be réversed, and the cause remanded for another trial.
The judgment recommended by the Commission of Appeals is adopted and will be entered as the judgment of the Supreme Court. We approve the holding of the Commission on the question discussed.
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