30 Del. 360 | Del. | 1919
delivering the opinion of the Court:
The main question raised is whether the court below rightly instructed the jury to find a verdict for the defendant. Deceit was the basis of the action, and the deceit alleged was the withholding from the plaintiff, as the prospective purchaser of shares of stock of a lead mining company, of information sought by him as to the financial standing of the company before becoming a purchaser thereof. In the court below, after both sides had concluded their testimony, the jury were instructed to find a verdict for the defendant.
The representations complained of were not as to the value of the stock, but as to the financial standing of the company. There was evidence that before the plaintiff bought any shares of stock, and in response to inquiries as to the indebtedness, or obligations, or abilities of the company, representations were
In the former case (High v. Berret), the plaintiff was induced to buy shares of a new mining company organized to buy the property of another mining company, relying on false and fraudulent representations as to the success of the old company and the amount of ore in the mine. Later the new company failed, and the buyer brought an action for damages. On the question of
"The loss in the transaction before us, is the difference between the real value of the stock at the time of the sale, and the fictitious value at which the buyer was induced to purchase.”
The court said also that the damages was not based on actual loss plus anticipated speculative results, and approved the action of the court below in limiting the verdict to the difference between the value of the property which the stock represents and the price paid for the stock.
In the latter case (Curtis v. Buzard), which was an action of deceit based on misrepresentations as to the price which the defendant, the seller, had paid for the shares which he had sold to the plaintiff, the court said the damages was the difference between what the buyer was induced to pay for the shares and their actual value at the time of purchase. This is substantially the rule applied in the earlier case of High v. Berret.
In the other cases in the courts of Pennsylvania cited here, the representations were as to the physical condition of personal property sold, and in such cases the rule of damages would be different from that applicable when the representations were as to the financial condition of the company in cases of sale of shares of its stock. Thompson v. Burgey, 36 Pa. 403; Stetson v. Croskey, 52 Pa. 230; Lukens v. Aiken, 174 Pa. 152, 34 Atl. 575.
We agree with the finding of the court below that there is nothing in the record to support the allegations of fraud made against Francis E. McGillick, one of the defendants, and find no error in the direction to the jury to find a verdict for him.
The judgment entered below on the verdict should be set aside as to John Beltz, and the plaintiff below, plaintiff in error, awarded a new trial as to the defendant John Beltz.
Note.—By agreement of counsel, the case of Joseph E. McGinness, plaintiff in error, v. defendants above was tried with the case above, and the same judgment was entered.