107 P. 565 | Cal. Ct. App. | 1910
Action to recover damages for alleged false representations made to plaintiff by defendant. The complaint charges that in August, 1906, the defendant, who was president of a corporation known as the Humboldt Brewing Company, with intent to cheat and defraud plaintiff, represented to him that said corporation then owned a brewery at Eureka, California, together with an ice plant in connection therewith, said property being represented by a picture of a brewery which defendant then exhibited to plaintiff. That said representations were false and untrue, known by defendant to be false and untrue, and were made for the purpose of deceiving plaintiff and inducing him to purchase shares of the capital stock of said corporation; that plaintiff believed the representations to be true, and, relying upon them, was thereby induced to and did purchase 330 shares of said capital stock for which he paid the sum of $1,650. That said corporation did not in fact then own, nor has it *372 ever owned, a brewery or an ice plant at Eureka, California, or elsewhere. That at the time of the purchase of the stock by plaintiff the same was, and still is, wholly worthless. The prayer of the complaint is to recover damages in the sum of $1,650, being the purchase price paid for the stock. The material allegations of the complaint were denied by the answer. The case was tried before a jury, which returned a verdict in favor of plaintiff, upon which judgment was entered. Defendant's motion for a new trial was denied, and he appeals from the order denying the same.
The court refused to give two instructions requested by defendant and such refusal is assigned as error. The first of these instructions is as follows: "Plaintiff cannot recover in this action unless he was deceived by the alleged representations, and if the means of knowledge are at hand, 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." In support of his contention appellant cites Hanscom v. Drullard,
There was no error in the court's refusal to instruct the jury to the effect that, if plaintiff consulted with or received information from others in regard to the brewery, such fact of itself precluded plaintiff's recovery. Conceding that plaintiff may have consulted others or received information from others, it would not follow as a matter of law that such information was of a character to influence him in the purchase. Moreover, the giving of such an instruction would take from the jury the determination of the question as to whether or not plaintiff relied upon the representations made by defendant, and was thereby induced to buy the stock.
Upon the measure of damages the court instructed the jury as follows: "If you find for the plaintiff the measure of damages is difference between the price paid by him for the stock purchased and what the stock was actually worth on the fifteenth day of January, 1908, the date this suit was brought, but not in any case exceeding $1,650, the amount claimed in the complaint." The decisions are at variance as to what constitutes the measure of damages in actions to recover for fraud and deceit. The rule contended for by appellant is that the measure of damages in such cases is the difference between the real value of the property at the time of the purchase and the price paid therefor, together with interest. This rule is supported by the highest authority. (Smith v. Bolles,
An order denying a motion for a new trial will not be reversed, however, for mere error, when it clearly appears that had the jury been correctly instructed as to the law their verdict could not have been otherwise. (Edwards v. Wagner,
The order appealed from is affirmed.
Allen, P. J., and Taggart, J., concurred.