Andrew D. Meloy & Co. v. Donnelly

• Decision Date: 30 December 1902
• Docket Number: 523.
• Citation: 119 F. 456
• Parties: ANDREW D. MELOY & CO. v. DONNELLY et al.
• Court: U.S. District Court — District of Connecticut

119 F. 456

ANDREW D. MELOY & CO. v. DONNELLY et al.

No. 523.

United States Circuit Court, D. Connecticut.

December 30, 1902

Arthur L. Shipman and G. Edward Mills, for plaintiff.

Henry G. Newton and A. D. Penney, for defendants.

PLATT District Judge.

This is an action in tort, demanding damages resulting from a conspiracy on the part of the defendants to cheat and defraud the plaintiff by certain alleged false and fraudulent acts respecting certain real estate situated in New Haven. The alleged wrongdoing may be summarized as follows: Plaintiff is a New York corporation, dealing in bonds, stocks, securities etc. Defendants are citizens and residents of New Haven, in the state of Connecticut. About January 1, 1902, said Donnelly owned certain real estate in New Haven. Crofutt Church, and Calhoun were agents of the plaintiff. Scoville was a real estate agent, doing business as an appraiser. Phelps was a builder. Moorhead was a real estate agent. About January 6th they conspired and agreed together to cheat and defraud the plaintiff out of certain stocks in the manner hereinafter set forth. Crofutt, Church, and Calhoun, acting ostensibly for the plaintiff, but in fact for Moorhead and Donnelly, told the plaintiff that the real estate was worth $48,800; that it ought to rent for $4,000 per year, and that the reason why it was not so rented was that the former owner was an old lady, who objected to all tenants but those of a certain character; that the property was increasing in value and had been doing so for some years, and would command a ready sale in the market. All this was false, and known to the five defendants mentioned last to be false, and was told to the plaintiff to obtain from it 3,000 shares of a certain stock in return for the property. The stock was worth $5 per share, and more. To further the scheme, said five defendants procured Phelps and Scoville to appraise the property at $48,800, and told the plaintiff that Phelps and Scoville were conservative appraisers in the city of New Haven, and in no way interested in the transaction, which the five knew to be false. On or about January 7, 1902, Scoville and Phelps signed an appraisal to the effect that the property was worth $48,800, and said appraisal was delivered to the plaintiff by the five defendants. The appraisal was fraudulent and excessive, and put the value about three times too high, and was done by 'defendants for the purpose of deceiving cheating, and defrauding the plaintiff out of the ownership and possession of said shares of stock. ' To further carry out the scheme, Donnelly told the plaintiff that the property was easily worth the $48,800, and that his reason for sacrificing it was that he was a contractor, and needed ready money. Crofutt, Church, and Calhoun backed him up in his statements, all the time pretending to be acting for the plaintiff, thereby preventing the plaintiff, and...