Caswell v. Hunton

• Citation: 32 A. 899,87 Me. 277
• Parties: CASWELL v. HUNTON.
• Decision Date: 04 March 1895
• Court: Supreme Judicial Court of Maine (US)

32 A. 899

87 Me. 277

CASWELL

v. HUNTON.

Supreme Judicial Court of Maine.

March 4, 1895.

(Official.)

Exceptions from supreme Judicial court, Androscoggin county.

This was an action by Cyrus A. Caswell against Jerome B. Hunton for false and fraudulent representations in the sale of personal property. Verdict for the defendant. Plaintiff excepts. Sustained.

The declaration alleged that the defendant, in order to induce the plaintiff to buy of him 25 shares in the capital stock of a corporation known as the "National Carving Company," and pay him therefor the sum of $500, falsely and fraudulently represented to the plaintiff "that said National Carving Company was just starting into business, and needed a little more money to get the business well started; that the company then and there had large orders to fill, and that he [the defendant] was then selling treasury stock, to raise money to do business to fill said orders; that the stock he [the defendant] was then selling was treasury stock of said corporation; that one P. W. Parker, one Frank R. Conant, one J. L. H. Cobb, and one C. I. Barker were then owners of similar treasury stock, purchased by them, respectively, of the corporation, at the same price he was paying; that he was, and had been since the company came to Maine, about a year before, the agent of said corporation to sell its treasury stock for the purposes aforesaid; and that, as such agent, he [the defendant] had sold to one P. M. Thurlow two hundred and fifty shares of like treasury stock, at the same price he was to pay."

The declaration contained all other necessary and material elements to state in legal form the alleged cause of action. The plaintiff contended, and introduced evidence tending to show, that the defendant, as an inducement to the sale, made each and all the representations above set forth. There was also evidence tending to show that the stock in question was sold by the defendant to the plaintiff for the sum of $500; that the stock so sold was not treasury stock, but the defendant's own stock; that the defendant, at the time of the sale, and for some time prior thereto, was the duly-authorized agent of the corporation to sell its treasury stock; that neither Parker, Conant, Cobb, nor Barker were, or ever had been, owners of similar treasury stock, purchased by them, respectively, of the corporation, at the price he was paying; that, as such agent (to sell stock), the defendant had never sold P. M. Thurlow 250 shares of like treasury stock, at the same price he (the plaintiff) was to pay; and that the defendant had the option to sell, and the right to sell, the plaintiff treasury stock, instead of his own stock.

The plaintiff introduced evidence tending to show: That, at the time of the purchase and sale of the stock in question, said corporation had outstanding 6,399 shares of its capital stock, the par value of which amounted to $159,975. That it owed on notes the sum of $9,200, and that it had other outstanding obligations against it amounting to about $500. That its entire property consisted of three machines, worth from $4,500 to $4,800; tools appraised at $2,000; accounts appraised at $300; cash, $769.44; and owned certain letters patent, under which the said machines were made and operated And that the corporation was organized in December, 1890, and, up to the time of said sale, had sold only 10 shares of its treasury stock, through the defendant, as its agent, for the sum of $200; and that, about a year after said sale, the entire property of said corporation was sold, on sheriff's sale, for less than $5,000.

The plaintiff requested the presiding Justice to...