網頁圖片
PDF
ePub 版

Plaintiff further testified that he relied upon these representations, and would not have purchased the bonds except for them. This is, in substance, the basis of plaintiff's claim of warranty.

Defendant argues that the statements, oral and written, show, upon their face, that they are mere expressions of opinion and are not such as constitute in law a warranty, citing in support of this contention the following cases: Bristol v. Braidwood, 28 Mich. 191; French v. Fitch, 67 Mich. 492; Krause v. Cook, 144 Mich. 365; Deming v. Darling, 148 Mass. 504 (20 N. E. 107); Crosby v. Emmerson, 142 Fed. 713; Worth v. McConnell, 42 Mich. 473; Chafey v. Mathews, 104 Mich. 103 (27 L. R. A. 558); Getchell v. Dusenbury, 145 Mich. 197; Duffany v. Ferguson, 66 N. Y. 482.

And it is further contended that there is no evidence which shows that the statements were intended to be warranties. None of the cases cited is directly in point. They, like most of the cases, deal with the general rules and their application to the particular facts therein involved. It is not always easy to determine where expressions of opinion leave off and representations of fact begin. Sometimes the same statement made on different occasions but under different circumstances will be differently construed. As was said in Andrews v. Jackson, 168 Mass. 266 (47 N. E. 412, 37 L. R. A. 402):

*

"It is often impossible, to determine as matter of law whether the statement is a representation of a fact which the defendant intended should be understood as true of his own knowledge or an expression of opinion. That will depend upon the nature of the representation, the meaning of the language used as applied to the subject-matter, and as interpreted by the surrounding circumstances in each case. The question is generally to be submitted to the jury."

207-Mich.-14.

Counsel suggest that the cases of Bristol v. Braidwood and French v. Fitch, supra, are similar on the facts and are controlling. We cannot agree with them in this view. The facts and the points decided are more or less at variance with the present one. In so far as particular cases can aid we think the cases of Taylor v. Soper, 53 Mich. 96, and Knauss v. Major, 111 Mich. 239, are more nearly in accord with the facts of the present case.

However, it may be said generally that:

"One who purchases a bond honestly relying on the seller's representations that it is valid when it is in fact invalid or worthless, may recover the price paid for it, in an action for a breach of warranty, although the seller may have acted in good faith and the buyer may have had ample opportunity to examine the bond. All material representations made by the seller with respect to the nature and character of the security for the bonds or as to the existence of security, when relied on by the purchaser, constitute warranties." 30 Am. & Eng. Enc. Law (2d Ed.), p. 158.

We might be able to agree with counsel in their contentions were it not for the letter of August 4th and the circumstances under which it was written. Plaintiff had been solicited by letter and literature to purchase the bonds. This was followed by several visits from Stanton who tried to induce plaintiff to purchase them. He had explained the irrigation projects upon which the bonds were issued, had praised their value and endeavored to convince plaintiff that he knew whereof he spoke, as members of his firm had been out to Denver and personally inspected the proposition. All this did not appear to satisfy plaintiff, he wanted something more, he wanted a letter from defendant itself that the bonds were as represented. In order to consummate the sale defendant yielded to his demand and wrote the letter, in which the significant words "know" and "absolutely good" were underscored.

Considering these circumstances, together with the fact that the irrigation projects at that time were new to the public, that plaintiff knew nothing about them and so advised defendant, and further advised defendant, when he purchased them, that by reason of his lack of knowledge he relied upon the representations so made to him, it cannot be said, as a matter of law, that the representations were mere expressions of opinion. We are persuaded that they are open to the inference that something more than mere expressions of opinion was intended. The question whether they were intended as expressions of opinion. or statements of fact was properly submitted to the jury. 35 Cyc. p. 481.

2. But counsel say there was no competent proof that Child, who wrote the letter of August 4th, had authority to warrant the value of the bonds. The trial court held, as a matter of law, that defendant had the power to warrant the value of bonds which it disposed of, but left it to the jury to say whether Child was authorized by defendant to do so. It appeared from the testimony that he was a director, secretary and vice-president of the company, in charge of the buying and selling of bonds. Testimony was received showing similar dealings with other persons. We think there was sufficient testimony to submit to the jury on the question of his authority to make the warranty, but if this question be a doubtful one, we think it can be said, as a matter of law, that the company ratified the act of Child. Plaintiff said to Stanton, "I will not buy unless the company writes me a letter saying the bonds are good." The next day he received such a letter signed by the defendant. This shows conclusively that the ultimatum of plaintiff was delivered to defendant and upon this letter defendant got plaintiff's money, and retained it after being advised of the circumstances under which it was received,

3. On the question of damages the court instructed the jury, in substance, that if they found the bonds were worthless in 1909, the measure of damages would be the amount plaintiff paid for the bonds, with interest to the date of the trial. They were further instructed that if they found there was some intrinsic value in the bonds in 1909 they should ascertain what the real value was, and the difference between that sum and what plaintiff paid for them, plus the interest, would be the proper measure of damages. Defendant claims that this was error because there was no evidence that the bonds were worthless in 1909. There was considerable testimony bearing on the value of the bonds in 1909, and there was some to the effect that they were worthless at that time. In view of this there was no error in submitting the case upon that theory. The instruction on the measure of damages finds support in Maxted v. Fowler, 94 Mich. 106.

4. Counsel argue that plaintiff, in purchasing the bonds, did not rely on the representations of defendant. This contention is supported by certain letters of plaintiff addressed to Trowbridge & Niver, in which he stated he relied on them in purchasing the bonds. This was in conflict with his testimony on the trial that he relied on the representations of defendant. After the admission of the letters plaintiff explained why he wrote them. It was the province of the jury to determine which, if either, of these statements was true. Kelly v. Freedman, 56 Mich. 321; Watson v. Watson, 58 Mich. 507; People v. Hansen, 183 Mich. 565; Parnell v. Pungs, 190 Mich. 638.

5. Serious complaint is made because the trial court admitted evidence of after events, namely: What steps were taken by the bondholders to protect their interests. Reports issued by the receiver and the bondholders' committees were received. Some of this testimony was important as throwing light on the value

of the bonds in 1909, but much of it had no relevancy to the issue. While we think there was much testimony admitted on matters foreign to the issue, we are not persuaded that such irrelevant testimony was prejudicial to defendant. We have examined and considered the remaining questions, but find no merit in them.

The judgment of the trial court is affirmed.

MOORE, STEERE, BROOKE, FELLOWS, STONE, and KUHN, JJ., concurred.

The late Justice OSTRANDER took no part in this decision.

CITY OF FLINT v. GRAND TRUNK WESTERN
RAILWAY CO.

1. RAILROADS-STREETS-UNAUTHORIZED CROSSING-ESTOPPEL. Where defendant railroad company, in 1910, constructed three stub tracks, constituting a siding, crossing certain streets in the city of Flint, without the latter's consent, but no objection was made thereto and said tracks were used until 1916, said city is estopped from requiring said tracks to be torn up and the streets returned to their original condition.

2. SAME

STATUTES-RIGHT TO CROSS STREETS.

In view of 2 Comp. Laws 1915, § 8232 et seq., permitting the tracks of steam railroads built on private right of way to cross public highways and streets, and a resolu tion of the common council of the city of Flint authorizing the construction of certain stub tracks across certain streets in said city, by defendant steam railroad company, to facilitate the movement of freight, which resolution was later rescinded and the construction sought On power of municipality to compel removal of spur track, turnout or switch from street or highway, see note in L. R. A. 1918B, 481.

« 上一頁繼續 »