76 N.Y.S. 716 | N.Y. App. Div. | 1902
This is an action to recover damages for deceit. The complaint alleges that on the 7th day of September, 1898, in consideration of the sum of $700 paid by the plaintiff, the defendants agreed to sell and deliver to him a certain retail meat business at No. 430 Amsterdam avenue, together with the good will and store fittings and fixtures, and to assign their lease of the premises; that the defendants represented that their landlord had purchased the premises and had consented to the transfer of the lease to the plaintiff ; that they introduced the plaintiff to a party who represented to him in the presence of one of the defendants that he was the authorized agent of the landlord and stated “ that everything would be all right; ” that the defendants surrendered possession to plaintiff according to their agreement, but they neglected and refused to assign the lease ; that thereafter and on the 1st of October, 1898,
The defendants appeared and answered separately, putting in issue the material allegations of the complaint with reference to the agreement to assign the lease and the representations concerning their right to assign it. It appeared that the lease to the defendants was for the purpose of conducting a meat and fish market, that it had nearly three years to run, but that it was not assignable without the written consent of the landlord.
In behalf of the plaintiff evidence was given tending to show that the defendants agreed to sell and assign the lease to him, but that they failed and neglected to do so. It was shown that on the 1st day of September, 1898, the defendants negotiated a sale of the business and lease to one Bollman for §1,100. After Bollman paid §100 to apply on the purchase price he was accompanied by the defendants’ son, by their direction, to obtain the consent of the landlord to the assignment of the lease. The agent of the landlord withheld the consent and stated that the latter did not want the butcher business continued there. The son was the agent of the defendants for this purpose and they are chargeable with the knowledge that he obtained as to the attitude of the landlord with reference to the assignment of the lease. (Hyatt v. Clark, 118 N. Y. 563, 569.) The evidence was competent as tending to show scienter. (Ankersmit v. Tuch, 114 N. Y. 51.) Bollman demanded the return of his money and refused to complete the purchase. The plaintiff heard of this sale and at his first interview with Herman
The court instructed the jury that if they found that the false representations with reference to the assignability of the lease and the landlord’s consent thereto were made willfully and with knowledge that they could not be carried out, they might award punitive damages up to the amount of $1,200. To this ruling the defendants excepted. We agree with the learned Appellate Term that this was error. When a purchase is induced by fraud, ordinarily, whether the action is for tort or for breach of contract, the measure of damages is full compensation for the reasonable, natural and proximate loss occasioned by the wrong or breach. In the case at bar this would be the difference between what the plaintiff paid and the value of what he received, together with the value of the lease and good will over and above the rent reserved and any special damages properly pleaded for expenditures in moving and storing the chattels for a reasonable time until other premises could be secured. (Driggs v. Dwight, 17 Wend. 71; Sharon v. Mosher, 17 Barb. 519 ; Rawley v. Woodruff, 2 Lans. 419 ; Krumm v. Beach, supra; Friedland v. Myers, 139 N. Y. 432; Hecla Powder Co. v. Sigua Iron Co., 157 id. 437; Smith v. Bolles, 132 U. S. 125; Sigafus v. Porter, 179 id. 116.)
In torts affecting personal rights and causing humiliation or indignity to one’s feelings, damages for such injuries are recoverable and are deemed compensatory. Vindictive, punitive or exemplary damages are also recoverable in the discretion of the jury in many classes of actions brought to redress a reckless or willful invasion of personal rights such as libel, slander, assault, seduction, alienation of affections and numerous others as a vindication to the indignity of the party whose feelings have been outraged, as a punishment to the defendant and as an example for the protection of the public and society against a repetition of the wrong by the defendant or
In Peckham Iron Co. v. Harper (41 Ohio St. 100) a recovery of exemplary damages was sustained in an action for deceit where an agent obtained goods from his principal for his own benefit, after a material advance in the market price, on false representations that he had sold the same before obtaining knowledge of such advance in price. In our courts the practice has been to .confine the damages in actions for deceit to compensatory damages. We think that rule should be adhered to, except, perhaps, where the wrong involves some violation of duty springing from a relation of trust or confidence, or presents other extraordinary or exceptional circumstances clearly indicating malice and calling for an extension of the doctrine.
The facts of this case .are not of such a character. We have carefully analyzed and stated the material evidence, because, as these authorities indicate, the question depends entirely upon the nature of the evidence. At most, this record only presents an ordinary
The order should be affirmed, with costs to respondent to abide the event.
Patterson, O’Brien and McLaughlin, JJ., concurred; Van Brunt, P. J., concurred in result.
Order affirmed, with costs to respondent to abide event.