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24 Wend. 101

Case v. Hall

New York Supreme Court

Decided May 15, 1840

New York Supreme Court · decided 1840-05-15

This was an action of assumpsit, tried at the Tompkins circuit in September, 1839, before the Hon. Robert Monell, one of the circuit judges. The plaintiff read in evidence two promissory notes made to him by the defendants for the sum of $424,83.

Good law ✅— No negative treatment on recordhow we know

Decided 1840-05-15

How this case has been cited

Cited by 21 later decisions (1 by the Supreme Court) — most recently February 1969

1 federal appellate · 19 state decisions — followed in 11 states

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Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

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¶1By the Court,

Nelson, Ch. J.

¶2There is no doubt if the vendor fraudulently represents the goods sold to be his own, when he knows them to belong to a stranger, an action on the case lies to recover damages therefor, though the real owner has not recovered the property, nor the vendee suffered any actual damage. 1 Show. 68. Cro. Eliz. 44. 1 Salk. 210, 211. 1 Ld. Raym. 593. Selw. N. P. 482, 483, and cases. 2 East, 448, n. Ross on Vendors, 334. And then upon the case of Becker v. Vrooman, 13 Johns. R. 302, the same matter might be admissible by way of defence for the purpose of reducing or extinguishing the claim for the purchase money. See also 15 Johns. R. 230, and 8 Wendell, 109. Where, however, the vendee relies on the warranty of title, express or implied, there must be a recovery by the real owner before an action can be maintained. This is in the nature of an eviction, and is the only evidence of the breach of the contract in analogy to the case of covenants real. Vibbard v. Johnson, 19 Johns. R. 77. 1 id. 274, 517. 6 id. 5. 13 id. 224. 5 Wendell, 535. Ross on Vendors, 334.

¶3In Vibbard v. Johnson, it is true, that the purchaser knew ' the property had been claimed by a third person, but that fact has never been regarded as material to the decision of the case ; nor is it noticed in the opinion delivered by the court. On the contrary, the right to recover the purchase money is put upon the broad principle, that the only competent evidence of a breach of the implied warranty of title, was a recovery at law. It was likened to a demise of a house, where the tenant attempted to defeat the recovery for rent by denying the title of the lessor, and claiming to have paid it to C., the owner.

¶4The principle is well sustained by analogy, and, I think, just in itself. In case of a breach of warranty, the measure of damages is the purchase money and interest. How, it would be highly inequitable to permit the vendee to retain *the possession, or enjoy the use of the prop- [ *104 ] erty thus acquired, and put his vendor at defiance. Possibly the *104owner may never claim, and enforce his title, or if he does, the seller may settle with him. The breach implies no bad faith, and, therefore, is compatible with perfect fair dealing between the parties ; and the indemnity is complete by responding therefor after a recovery under the paramount title..

¶5If there has been fraud in the case, the remedy is immediate for all the damages the parties have sustained, and to which they may resort if they apprehend loss from delay in the claim of the owner.

¶6The counsel for the defendant, in an ingenious brief, has likened the case to the covenant of seizin, and right to convey where the action accrues immediately, without an eviction ; but this would be extending the implied warranty, in this case, beyond the analogous cases of lands and chattel interests ; it is there regarded as a covenant of warranty only, not of seizin. 7 Johns. R. 258.

¶7It is further insisted, that the facts embraced in the offer shew fraud on the part of the plaintiff, and upon that ground should have been admitted under the rule of Becker v. Vrooman. I think not. There was no offer to prove guilty knowledge. A man may very well be mistaken in respect to his title ; and we cannot, therefore, presume a knowledge of the defect. All the cases before referred to on this point, show the scienter to be material, and that it must be proved affirmatively. Though the plaintiff occupied under a contract of sale, he may have honestly supposed that he had a right to cut the timber, notwithstanding the law is otherwise.

¶8New trial denied.

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