154 Iowa 534 | Iowa | 1912
This action was brought to recover against the defendants jointly for fraud and false representations, inducing the plaintiff to enter into a contract for the purchase of a section of Texas land, and on an oral guaranty of the defendants. There was a trial to a jury and a verdict and judgment for the plaintiff for a part of his demand. Both parties appeal, but the defendants will be designated herein as the appellants. The defendants are brother and sister, living together, and at the time of the transactions involved herein Isaac Fryman was an agent of the International Land Company, a company engaged in buying and selling Texas land, with its headquarters then at Davenport, Iowa. Through the influence of these defendants, the plaintiff in July, 1907, was induced to accompany them, and other representatives of the land company to Texas on a land seekers’ excursion conducted by the land company, and while there the plaintiff entered into a contract with the land company, agreeing to purchase a section of land, and to pay therefor the sum of $9,636.99, and the land company and M. ILarrah, who seems to have been the principal part of said company, agreed to buy back the same.land at an advance of $2 per acre. The plaintiff paid $4,81$.49 on this contract. The land company never owned the land in question, nor was it ever able to convey the same or cause the same to be conveyed to the plaintiff. Both the land company and M. Ilarrah were practically insolvent when the contract with the plaintiff was made, and a few months thereafter it went into the hands of a receiver because of insolvency. The plaintiff obtained a judgment against the land company for the amount paid to it on the purchase price of the land in question, but nothing could be collected thereon. This action was afterwards brought; the plaintiff alleging in the first count of his petition that he had been induced to enter into the contract and pay the money on the purchase price of the land by the false
Isaac Fryman was the local agent of the land company, and it is shown that Mary Fryman assisted him in promoting the interests of the company. They together induced the plaintiff to make the trip to Texas, and they both went with him. The representations, nelied upon to_ sustain the allegations of the first count of the petition, were made by both when they were together and engaged in the same common purpose, and they are both, therefore, brought within the rule of the cited cases, and are jointly liable in this action.
We also think the statements made by both defendants separately after they started for Texas and before the plaintiff' made the contract were competent against both, for the reason that there was sufficient evidence to show a combination for the purpose of inducing the plaintiff to purchase, and in such event it was proper evidence whether the action was based on a conspiracy or not. If it was a fact that there was a conspiracy to wrong the plaintiff, and this was sufficiently shown to admit the declarations of both in furtherance thereof, we think the testimony competent.
The judgment is modified and affirmed.