Watson v. Wagner

Decision Date18 July 1918
Docket NumberNo. 128.,128.
PartiesWATSON v. WAGNER et al.
CourtMichigan Supreme Court

202 Mich. 397
168 N.W. 428

WATSON
v.
WAGNER et al.

No. 128.

Supreme Court of Michigan.

July 18, 1918.


Appeal from Circuit Court, Wayne County, in Chancery; Edward R. Gilday, Judge.

Suit by Marcelena Watson against William F. Wagner, Julia P. Hart, and others. From a decree dismissing bill and supplemental bill as to defendant Julia P. Hart upon her motion in the nature of a general demurrer, plaintiff appeals. Reversed and overruled.

The facts alleged in the bill and supplemental bill are somewhat complicated. We shall state those only which are necessary to an understanding of their effect upon the claim of defendant Julia P. Hart, as the case comes to this court on appeal from a decree dismissing the bill and supplemental bill as to her upon her motion in the nature of a general demurrer.

From such bill and supplemental bill it appears that the plaintiff was the vendee in a land contract for the purchase of the Balmoral Apartment; that her interest as such vendee was worth $27,750, and the property was productive of a large income; that she was entirely without business experience. Among her roomers was defendant Denton, who had been with her many years, and in whom she had full confidence. Defendant Wagner was interested in a corporation called the ‘Wagner Resilient Wheel & Tire Company.’ He and defendant Denton first procured, by representations alleged to have been fraudulent, an assignment of plaintiff's interest in the Balmoral Apartment for stock in this company and a small additional consideration. She soon concluded the deal was not a good one for her and they returned her contract to her. But they soon renewed negotiations to obtain her interest in the apartment, urging upon her their fairness in returning her contract to her when requested, stated that Wagner owned eight lots on Jefferson avenue, worth $16,000, which would be given in addition to the consideration moving to her in the former deal. Relying upon their supposed fairness and her confidence in Denton, who protested that he was not interested in the transaction, but was prompted solely by his desire to assist her, she agreed to make the trade. The lots were not owned by defendant Wagner, but were owned by defendant Berman, and were alleged to be worth from $12,000 to $15,300. The stock in the ‘Wagner Resilient Wheel & Tire Company’ was worthless. The company was doing no business, and its corporate right to do business had lapsed. It is alleged the sale of its stock was illegal, whether for failure to secure the approval of the Michigan Security Commission does not appear, and the allegations of the bill quite fully warrant the conclusion that plaintiff would have been defrauded in a considerable amount if she had secured the unincumbered...

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