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19 Tenn. 155

Donelson v. Young

Tennessee Supreme Court

Decided December 5, 1838

Tennessee Supreme Court · decided 1838-12-05

Clements, who was a machinist, sold to Donelson a spinning machine for one hundred dollars, for which Donelson executed his bill single, dated September 18, 1831, payable on or before the first of June, 1833. The machine proved to be nearly useless, and on being informed of the fact, he acknowledged that he had sold it for a good one, and said that he would make it good.

Decided 1838-12-05

Green, J.

¶1delivered the opinion of the court.

¶2It is very clear in this case, that the machine, purchased by the complainant from the defendant Clements was wholly worthless. The bill charges that Clements represented that the machine was a good one, and thus imposed upon the complainant. This allegation is supported by the proof. Thur-sey Smith says, she heard Clements admit that he had sold the machine for a good one. Where a party misrepresents a material fact, by which another is misled or imposed upon to obtain an undue advantage of him, it is fraud. Story’s Eq. § 192.

¶3In this case Clements was the manufacturer of the article sold. It was radically defective, so as to be of no value. If he is a good mechanic, capable of making a good machine, he must have known, that the one sold by him to the complainant was not a good one, and by his representation intended to mislead him. If he is, not a master workman, he must be sensible of his want of skill and is equally culpable.

¶4In either point of view, he is guilty of fraud, and consequently, this court has jurisdiction to afford relief.

¶5But the other defendant obtained an assignment of the note before it was due, without notice of complainant’s equity, therefore, there can be no decree against him.

¶6Let the decree be affirmed in all its parts.

Whenever a security for money has been obtained by fraud or deceit, a court of equity has jurisdiction to relieve against it; and its being, in any case, a simple contract, only makes it capable of being relieved against in a court of law too, but does not oust the chancery jurisdiction. Dyer vs. Tymewell. 2 Vernon, 122, and cases cited in Mr. Raithby’s note 2; especially, Colt vs. Woollaston, 2 P. W. 154; Chitty on Bills, 119; Gladstone vs. Hawden, 1 Maule & Selwyn, 517.
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