Monroe v. Hoffman

Decision Date16 June 1936
Docket NumberNo. 151.,151.
Citation267 N.W. 836,276 Mich. 281
PartiesMONROE v. HOFFMAN.
CourtMichigan Supreme Court

OPINION TEXT STARTS HERE

Action by Howard C. Monroe against Ernest C. Hoffman. From an adverse judgment, the defendant appeals.

Affirmed.

Appeal from Circuit Court, Berrien County; Chas. E. White, judge.

Argued before the Entire Bench, except SHARPE, J.

Philip C. Landsman, of Buchanan, and Burns & Hadsell, of Niles, for appellant.

Stuart B. White, of Niles, for appellee.

TOY, Justice.

This is an action to recover the balance due plaintiff from defendant on the purchase price of a motion picture theater located in Buchanan, Mich. Defendant in his answer claimed that plaintiff misrepresented the deal to him; that as a result he was defrauded; and he seeks to recoup his alleged resultant damages. Jury trial was had, and at the close of proofs plaintiff moved for a directed verdict. The motion was taken under advisement by the trial court and the case submitted to the jury. The jury could not agree, and was discharged by the court. Thereafter, plaintiff again moved for a directed verdict, which was granted, and judgment was entered for him in the sum of $2,818.75. Defendant appeals therefrom.

Appellant presents for review the question of whether the trial court erred in determining, as a matter of law, that the defendant had by his actions waived his right to complain of the alleged fraud upon the part of plaintiff.

The agreement between the parties for the sale and purchase of the theater was executed April 17, 1935. It was in writing, and was an executory contract. By its terms, it provided for a down payment of $1,000, and that an additional $2,500 should be paid plaintiff by defendant on or before May 1, 1935, and that of the balance, $3,000 was to be paid in 24 monthly installments of $125 each, beginning on June 1, 1935, and payable on the first of each month thereafter. As part of the purchase price, defendant agreed to assume and pay $265.44 then owing by plaintiff for air-conditioning equipment installed in the theater.

Defendant paid the $1,000 down payment on April 17, 1935, and took possession of the theater, which he proceeded to operate.

Thereafter, he discovered, he testified, that plaintiff had misrepresented to him several conditions about the theater relative to the projecting machines, the airconditioning equipment, structural improvements, and the lease, which misrepresentations had caused him to be defrauded. It is not necessary, in view of the question here presented, to recount the details of the alleged fraud, for we shall, because of the nature of the question involved, consider the testimony in a light most favorable to defendant, and therefore shall, for the purpose of decision, assume the fraud to have been effected.

The defendant testified that he discovered some evidence of the alleged fraud shortly after the consummation of the deal. He testified further that he had full knowledge of the claimed fraud on July 5, 1935, or within three or four days thereafter.

On May 10, 1935, plaintiff left Buchanan and went to California, but before he departed defendant paid him $1,000 of the $2,500 payment due May 1st. Defendant testified that it was understood between plaintiff and himself that he would pay the $1,500 balance of such payment July 1st.

On July 5th, defendant wrote to plaintiff as follows:

‘Friend Howard:-I am writing to ask you to let the $1500.00 that is now due ride along with the monthly payments that is I mean to pay this $1500 after the other payments are made as I have had an expense of over $400 sending my wife to Rochester and she must go there again in about three or four weeks for a serious operation which will cost me with all expenses about $750.00. Now if you can get along without this amount at present I would appreciate it very much as I hate to take a loss on some of my properties or bonds at present. But if you must have it I will have to take quite a loss which I am willing to do. Please let me know by special delivery mail at once as I am going to pay up the entire balance on the cooling system as they wrote me and said they should have been notified of the sale of the theatre and would not transfer the notes as they were not transferable. I am having the entire theatre painted inside blue and silver and am having a steel canopy over the entire front figured on this week. Business has been good up to the past week when it turned real hot and the men are not working steady at present. Please let me hear from you by return mail as I expect to make a trip to Rochester with my wife next week. Very truly yours, E. C. Hoffman. P. S. Monthly payments have all been placed to your credit.’

Plaintiff, on July 12, wired from Long Beach, Cal., requesting immediate payment of the $1,500 due.

On July 15th, defendant again wrote plaintiff by special delivery mail as follows:

Dear Howard: It is with regret that I write you without sending the $1500 due. As I wrote you ten days ago by special delivery my wife has to undergo a serious operation at Mayo's Rochester, Minnesota, in which I will have to expend between seven and nine hundred dollars. I want to pay you $500 now and the same amount January 1st, 1936, and the other $500 May 1st. In addition your $125 monthly will be paid to the Bank here. You will get all of your money and I feel that due to the unfortunate condition of my wife you should give me this extension especially since I will carry out my terms in full. And you will have all of your money. * * * With kindest personal regards.’

In reply to the letter of defendant dated July 5, plaintiff on July 16, from Long Beach, wired defendant that he could not oblige him as requested, and demanded immediate payment of the $1,500 due.

Then occurred the following interchange of telegrams which are self-explanatory:

‘Buchanan, Michigan, July 17, 1935, H. C. Monroe, Ritz Theatre Long Beach, California. Impossible to send more than five hundred dollars. Will send balance as per letter of fifteenth or sooner if possible. Wire if you desire the bank or myself to forward the five Hundred dollars. E. C....

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11 cases
  • Grand Trunk Western R. Co. v. HW Nelson Co.
    • United States
    • U.S. Court of Appeals — Sixth Circuit
    • March 13, 1941
    ...the fraud by performance with knowledge of the fraud acquired subsequent to the making and previous to the performance. Monroe v. Hoffman, 276 Mich. 281, 267 N.W. 836; Van Scherpe v. Ulberg, 232 Mich. 699, 206 N.W. We are not permitted to pass on the weight of the evidence and, taking the v......
  • Wiederhold v. EMC Mortg. Corp., 10-cv-13414
    • United States
    • U.S. District Court — Eastern District of Michigan
    • March 30, 2012
    ...his right to rescind the contract. See Foster Mach. Co. v. Corel Mfg. Co., 219 Mich. 455, 189 NW 228, 231 (1925); Monroe v. Hoffman, 276 Mich. 281, 267 NW 836 (1936), overruled, in part by, Edson v. Harris, 356 Mich. 175, 96 N.W.2d 767(1959);4 Allendale Mut. Ins. Co. v. Triple-S Technologie......
  • Allendale Mut. Ins. Co. v. Triple-S Technologies, Inc.
    • United States
    • U.S. District Court — Western District of Michigan
    • September 14, 1993
    ...misrepresentation at the time of the fire. In support of this proposition, it cites a case from 1936. However, Monroe v. Hoffman, 276 Mich. 281, 267 N.W. 836 (1936), concerned an executory contract. The buyer of a theater sought the return of his money on the basis that plaintiff misreprese......
  • Nowicki v. Podgorski, 48
    • United States
    • Michigan Supreme Court
    • February 25, 1960
    ...is not concerned, even though it is often difficult to tell which question a court is dealing with.)' Appellants rely on Monroe v. Hoffman, 276 Mich. 281, 267 N.W. 836; McKinney v. Gillmore, 307 Mich. 155, 11 N.W.2d 841, and Lisowek v. Bagozzi, 354 Mich. 398, 93 N.W.2d 279. It may be noted ......
  • Request a trial to view additional results

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