Public-domain · open source
OpenJurist

60 N.H. 485

Goodwin v. Horne

Supreme Court of New Hampshire

Decided June 5, 1881

Supreme Court of New Hampshire · decided 1881-06-05

Assumpsit, by th.e indorsee of two promissory notes, signed by the defendant, and indorsed by the payee to the plaintiff before maturity. Plea, the general issue, and a brief statement that the notes were without consideration, and were procured by the fraud of the payee, of which the plaintiff had knowledge. The notes were given for the right to make and sell a patent spring-bed in the states of Maine and New Hampshire.

Relies on Gutterson v. Morse · Bradley v. Obear · Long v. Woodman

Good law ✅— No negative treatment on recordhow we know

Decided 1881-06-05

How this case has been cited

Cited by 28 later decisions — most recently October 1947 · most notably Fidelity Mutual Life Insurance v. Clark (1906), Sharkey v. Burlingame Co. (1929)

2 federal appellate · 25 state decisions — followed in 15 states

1001881189019001910192019301940decided

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.

View the full empirical analysis of this case →

Allen, J.

¶1 The rule that parol evidence is inadmissible to vary the terms of a-written contract, does not exclude evidence of a want of consideration, illegality, or fraud, when a defence is made on any one of these grounds. Although the agreement of the payee to buy five hundred beds at a profit to the defendant, and in payment of the notes, was no part of the consideration, it was an inducement to the sale of the invention for which the notes were given. Ordinarily false promises are not 'fraudulent, nor- evidence of fraud, and only false representations of past or existing facts are actionable, or can be made the ground of defence. Long v. Woodman, 58 Me. 49; Murray v. Beckwith, 48 Ill. 391; Loupe v. *487 Wood, 51 Cal. 586; Jorden v. Money, 5 H. L. Cas. 185; Cool. Torts 486. But when a promise is made with no intention of performance, and for the very purpose of accomplishing a fraud, it is a most apt and effectual means to that end, and the victim has a remedy by action or defence. Such are cases of concealed insolvency, and purchases of goods with no intention to pay for them. Bradley v. Obear, 10 N. H. 477. If the payee had no intention to buy the spring-beds, and used the promise for the purpose of inducing the defendant to buy the invention and give the notes, and the defendant, relying upon the promise, gave them, it was evidence of fraud. The evidence objected to contained oidy a part of the representations made at the time, and claimed to be fraudulent. With other representations and acts of the payee, the evidence was relevant to the question of his intention to defraud the defendant, and induce him to give notes for a worthless patent. All the negotiations between the parties at the time of the sale, and when the notes were given, were material upon the question of fraud in the payee.

¶2 The offer of the plaintiff to show that since the suit was brought the defendant conveyed his real estate to prevent the satisfaction of any judgment which the plaintiff might recover, was an offer to show the conveyance of land by parol evidence, and objection was made upon this ground. Competent evidence of such a conveyance was material upon tbe question of the honesty and good faitb of tbe defence. Gutterson v. Morse, 58 N. H. 165. But the evidence offered was secondary in its character, and this was a sufficient ground for its exclusion.

¶3 Judgment on the verdict.

BuODGETT, J., did not sit: the others concurred.
/60/nh/485 · .json · Public domain