173 F. 319 | U.S. Circuit Court for the District of Western North Carolina | 1909
This is a bill brought by the complainants against the defendant to rescind and cancel an executed contract for the sale of real estate in the city of Asheville. The bill alleges that the complainants are citizens of Ohio and residents of Cleveland in that state, and that the defendant is a citizen of North Carolina and an inhabitant of the Western district of North Carolina, living in Ashe-ville. It is then alleged that, some time in the spring of 1905, the health of Mrs. Nellie Murray became so impaired that it became necessary for her to come South to secure the benefit of a milder climate; and, being so advised, she came to Asheville, secured a temporary residence in the city, and took up the matter of employing a physician who might aid her in the restoration of her health; that before coming to Asheville she heard of the defendant as a physician in St. Eouis, Mo., where he had professionally treated her brother; and that, induced by these considerations, among others, she called upon him and engaged him to treat her. She became his patient, and remained so for about two years, during which time the defendant acquired not only professional, but personal, Confidence and friendship of Mrs. Murray, and of her husband, George R. Murray, who frequently came to Asheville to visit her and look after her welfare and comfort as often as his business would permit, and close personal relations were established between the defendant and the complainants, which continued uninterrupted until some time after the purchase of the property in controversy. During this period Mrs. Murray returned to her home in Cleveland, but remained only a short time, it being doubtful whether she would be able to retain her health there; and it became necessary for her to return to Asheville, and with that in view she and her husband formed a determination to purchase a house in Asheville for her to occupy as long as her comfort and convenience might require, her husband to visit her as often, and remain as long,- as his business would permit; that this decision was communicated to the defendant, and that he gave his most hearty approval, and expressed full confidence that by carrying it into effect the health of Mrs. Murray could be restored. He was' asked by the complainants to assist in the selection of a proper place for thé purpose. In response to this, defendant procured from real estate agents in Asheville a long list of properties offered for sale, and discussed them with Mrs. Murray and her husband; but to the most of them the defendant suggested objections. He then proposed to sell them the house and lot which he occupied as a home on Pearson Drive, in the western part of Asheville, representing it to be eminently suited for their purposes, and stated that it was
The defendant claimed and represented that the true westerly line began near the bush or sapling on the north margin of Pearson Drive, and ran in a general direction north to the intersection of the alley shown on the plat from the letter “A” to the letter “B,” and for a considerable portion of that ling from the alley southward there was a fence separating this lot from that adjoining it on the west, and the barn aforesaid was situated wholly east of the said line. These lines were shown to complainant George R. Murray before the conclusion of the negotiations. Complainants having absolute confidence in the friendship of the defendant, relying implicitly upon his statements to
In his answer, under oath, defendant admits that he was Mrs. Nellie Murray’s physician, but denies that there existed between himself
Evidence was taken, there has been a final hearing in the case, and, after argument, it has been submitted for determination. In order to correctly understand this case, it must first be stripped of all superfluous matter. Some evidence was offered by complainants tending to show that they were informed, after purchase, that the house had been occupied by persons afflicted with tuberculosis, rendering it unsuitable for Mrs. Murray’s occupancy. There is no allegation whatever in the bill to this effect, and the testimony so offered was objected to by defendant’s counsel as being inadmissible for that reason. The rule that the. allegation made in the bill and the proof in support of it must correspond, and that no proof will be admitted in support of that which is not alleged, is so well settled that it 'hardly needs authority to support it; so that I think this matter may be entirely eliminated before coming to a consideration of the real question involved. It may also be said, as will be shown by a clear statement in the bill, that no fraud or deceit is claimed to have been practiced by the defendant in connection with the transaction. The matter of the frontage of the lot appears to have been waived, and not insisted upon now, so that the status of the case is, as was conceded on the hearing, that of a mutual mistake of the parties as to the western line of the lot.
That the defendant really believed the' line to be where the fence and some shrubbery showed it to be was evidenced by the fact that he had built his barn so that the larger part of it was on the small strip or angle as to which the mistake is said to have been made. That complainants believed that to be the line is manifest, because the barn was on the line and the fence was running up along a considerable portion of the lot to a point about even with the back porch, thereby indicating to them, or to any one else not making a careful measurement, that this was the true line. It is perfectly clear from the evidence that the
In Grymes v. Sanders et al., 93 U. S. 55, 23 L. Ed. 798, it is said in the opinion by Mr. Justice Swayne:
“A mistake as to a matter of fact, to warrant relief in equity, must be material, and the fact must be such that it animated and controlled the conduct of the party. It must go to the essence of the object in view, and not be merely incidental. The court must be satisfied that but for the mistake the complainant would not have assumed the obligation from which he seeks to be relieved. Kerr on Mistake & Fraud, 408; Trigg v. Read, 5 Humph. (Tenn.) 529 (42 Am. Dec. 447); Jennings v. Broughton, 17 Beav. 541; Thompson v. Jackson, 3 Rand. (Va.) 507 (15 Am. Dec. 721); Harrod’s Heirs v. Cowan, Hardin (Ky.) 543; Hill v. Bush, 19 Ark. 522; Juzan v. Toulmin, 9 Ala. 662, 44 Am. Dec. 448.”
In Story’s Equity Jurisprudence, § 151, the doctrine is stated in this way:
•< * * * Mistake or ignorance of facts in parties is a proper subject of relief only when it constitutes a material ingredient in the contract of the' parties and disappoints their intention by a mutual error, or where it is inconsistent with good faith, and proceeds from a violation of the obligations which are imposed by law upon the conscience of either party. But where each party is equally innocent, and there is no concealment of facts which the other party has a right to know, and no surprise or imposition exists, the mistake or ignorance, whether mutual or unilateral, is treated as laying no foundation for equitable interference.”
Section 856 of Pomeroy’s Equity Jurisprudence, on this subject, is as follows:
“There are two requisites essential to the exercise of the equitable jurisdiction in giving any relief defensive or affirmative. The fact concerning which the mistake is made must be material to the transaction, affecting its 'substance, and not merely its incidents; and the mistake itself must he so important that it determines the conduct of the mistaken party or parties. If a mistake is made by one or both parties in reference to some fact which, though connected with the transaction, is merely incidental, and not a part of the very subject-matter, or essential to any of its terms, or if the complaining party fails to show that his conduct was in reality determined by it, in any case the mistake will not be ground for any relief affirmative or defensive.”
From the foregoing authorities, and others which might be cited, it seems clear that a mistake, to justify equitable relief, must be as to a matter which was controlling in bringing about the transaction. The mistake should be as to something without which the trade would not
But there is an additional reason against the complainants’ right to relief in this case, and it grows out of the fact that the record shows that they had the same opportunity the defendant had for getting the true facts, but failed to' avail themselves of the information which was readily at hand. They were furnished defendant’s deed to the property and the chain of title for their examination. They placed the examination of the title in the hands o'f competent attorneys, and altogether could have known, just as well as the defendant could have known, everything about the lot and its proper and true boundaries. The authorities are uniform to the effect that, this being true, they are not entitled to relief in a court of equity.
In Crowder v. Langdon, 38 N. C. 486, the rule on this subject is stated in this way:
“ * * * Tie general rule unquestionably is that an act done or a contract made under a mistake or ignorance of a material tact is relievable in equity. 1 Story, Equity, 155. But where the means of information are alike open to both parties, and when each is presumed to exercise his own judgment in regard to extrinsic matters, equity will not relieve. The policy of the law is to administer relief to the vigilant, and to put all parties to the exercise of a proper diligence. In like manner,, where the fact is equally known to both parties, or where each has equal and adequate means of information, or when the fact is doubtful from its own nature, in any such case, if the party has acted with entire good faith, a court of equity will not interpose. 1 Fonb. Eq. bk. 1, c. 2, § 7, note “v”; 1 Pow. on Con. 200; 1 Mad. Ch. Pr. 02, 4; 1 Story, Eq. 163.”
In Anderson v. Rainey, 100 N. C. 321, 5 S. E. 182, in the headnote-it is said:
. “If, in a contract for the purchase of land, a party fails to avail himself of those sources of information readily within his reach, and chooses to rely upon representations which, though not true, were not made with any false and fraudulent intent, the maxim of ‘caveat emptor’ applies, as it does to personal property, and courts will not aid the purchaser. Walsh v. Hall, 66 N. C. 233.”
An extract from the opinion in Woodbury v. Evans, 122 N. C. 781, 30 S. E. 2, is as follows:
“This is an action to recover the balance due on a contract for the sale of land, and the court says: ‘In all contracts for the sale of land it is the duty of the purchaser to guard himself against defects of title, quantity, incumbrance, and the like; and if he fail to do so it is his own folly, for the law will not afford him a remedy for the consequences of his own negligence. If, however, representations are made by the bargainor, which may be reasonably relied upon by the purchaser, and they constitute a material inducement to the contract, and are false within the knowledge of the party making them, and*329 cause loss and damage to the party relying upon them, and he, has acted in ordinary prudence, in the matter, he is entitled to relief.’ Etheridge v. Vernoy, 70 N. C. 713; Foy v. Haughton, 85 N. C. 168; Anderson v. Rainey, 100 N. C. 321, 5 S. E. 182.”
In Farnsworth v. Duffner, 142 U. S. 48, 12 Sup. Ct. 165, 35 L. Ed. 931, in the opinion by Mr. Justice Brewer, the proper rule on this subject is stated in this language:
“This is a suit for the rescission of a contract of purchase, and to recover the moneys paid thereon, on the ground that it was induced by the false and fraudulent representations of the vendors. In respect to such an action it has been laid down by many authorities that, where the moans of knowledge respecting the matters falsely represented are equally open to purchaser and vendor, the former is charged with knowledge of all that by tbe use of sucls means he could have ascertained. In Slaughter, Administrator, v. Gerson, 13 Wall. 379, 383, 20 L. Ed. 627, this court said: ‘Where tbe. means of knowledge are at. band and equally available to both parties, and the subject of purchase is alike open to their inspection, if the purchaser does not avail himself of these means and opportunities, he will not be heard to say that he has been deceived by the vendor’s misrepresentations. If having eyes, he will not see matters directly before them, where no concealment is made or attempted, he will not he entitled to favorable consideration when he complains that he has suffered from his own voluntary blindness, and been misled by overconfidence in the statements of another. And the same rule obtains when the complaining party does not rely upon the misrepresentations, but seeks from other quarters means of verification of the statements made, and ads upon the information thus obtained.’ See, also, Southern Development Co. v. Silva, 125 U. S. 247, 8 Sup. Ct. 881 , 31 L. Ed. 678; Farrar v. Churchill; 135 U. S. 609, 10 Sup. Ct. 771, 34 L. Ed. 246. In Ludington v. Reinick, 7 W. Va. 273, it was held that ‘a party seeking the rescission of a contract, on the ground of misrepresentations, must establish the same by clear and irrefragable evidence; and if it appears that he has resorted to the proper means of verification, so as to show that he in fact relied upon his own inquiries, or if the means of investigation and verification were at hand, and his attention drawn to them, relief will be denied.’ In the case of Atwood v. Small, decided by the House of Lords and. reported in 6 Cl. & Finn. 232, 233, it is held that ‘if a purchaser, choosing to judge for himself, does not avail himself of the knowledge or the means of knowledge open to him or to his agents, he cannot be heard to say that he was deceived' by the vendor’s representations.’ And in Pomeroy’s Equity Jurisprudence, § 892, it is declared that a parly is not justified in relying upon representations-made to him * * * ‘(1) when, before entering into the contract or other transaction, he actually resorts to the proper means of ascertaining the truth and verifying the statement; (2) when, having the opportunity of making such examination, he is charged wiih the knowledge he necessarily would have obtained if ho had prosecuted it with diligence; (3) when the representation is concerning generalities equally within the knowledge or the means of acquiring-knowledge possessed by both parties.’ ”
' In Shappirio v. Goldberg, 192 U. S. 232, 24 Sup. Ct. 259, 48 L. Ed. 419, in the opinion by Mr. Justice Day, this is said on this subject:
“When the means of knowledge are open and at hand, or furnished to the purchaser or his agent, and no effort is made to prevent the party from using them, and especially where the purchaser undertakes examination for himself, he will not be heard to say that he has been deceived to his injury by the misrepresentations of the vendor. Slaughter, Adm’r, v. Gerson, 13 Wall. 379, 20 L. Ed. 627: Southern Development Co. v. Silva, 125 U. S. 247, 8 Sup. Ct. 881. 31 L. Ed. 678; Farrar v. Churchill, 135 U. S. 609. 10 Sup. Ct. 771, 34 L. Ed. 246; Farnsworth v. Duffner, 142 U. S. 43, 12 Sup. Ct. 164, 35 L. Ed. 931.”
What is now said to be the truth about this strip of land was no1 known to either party at the time of the sale. It could have been ascertained by the defendant by a careful examination of the deeds and
What has been stated would seem to be sufficient to show that complainants are not entitled to relief in a court of equity. In addition to this it may be stated that, after Mr. and Mrs. Murray came to Ashe-ville and saw the place, they moved their furniture into it, although it is probably true that they soon moved it out; but they did list the property for rent with a real estate agent in Asheville, but when the agent obtained a tenant Mrs. Murray declined to execute a lease. Whether this, in the absence of other controlling reasons, would be sufficient to deny relief, it is unnecessary to determine, because what has been heretofore stated must control the case against the complainants, and requires a denial to them of the relief sought by the bill.
■ Another matter has impressed me ever since the facts of the case, were presented, and that is: Why it was that both the defendant and complainants,. after they bought the property, so readily yielded this strip of land under all the circumstances. Perhaps it would be unwise and improper to express any opinion now as to the relative rights of the parties here, and others, in this respect; but, if this strip could have been legally retained 'by the complainants as between them and the adjoining owner, there would certainly be no ground for relief here, whatever else might be true in the case. It seems to be conceded, however, by counsel for both complainants and defendant, that this strip must be yielded to the adjoining owner.
. In view of this, I am inclined to think that it would be equitable for the defendant to pay the expense of removing the barn within what they seem to be willing to recognize as the true line. What this cost would be is a matter of conjecture, and I will hear counsel as to this; the costs to -be equally divided.
For other cases see same topic & § number in Dec. & Am. Digs. 1907 to date, & Rep’r Indexes