Dow v. Swain

Citations

• 125 Cal. 674
• 58 P. 271
• 1899 Cal. LEXIS 924

Syllabus

<p>Exchange of Land fob Foundby Stock — Feaud — Rescission-Findings—Reliance upon False Repbesentations.—In an action to rescind an exchange of land for foundry stock, fraud justifying the rescission is established by findings that plaintiffs were induced to make the exchange solely by reliance upon materially false and fraudulent representations of fact by the defendants as to the solvency, profits, and assets of the corporation owning the foundry, and that the value of the stock could have been approximately ascertained only by a thorough investigation by experts of the value of the assets, property, books, and business of the corporation, and that plaintiffs were ignorant of the falsity of the representations, and acted upon them as true.</p> <p>Id.—Absence of Confidential Relations—Possibility of Investigation-Judgment not Supported—Reversal upon Appeal.— Further findings that there was no relation of trust or confidence between the parties, that plaintiffs were not fraudulently induced to forbear inquiry into the truth of the representations, and that “they might have ascertained their falsity by making the necessary investigations and employing the proper means to that end,” cannot overcome the effect of the other findings, or sustain a judgment for the defendants upon the entire findings; and judgment for the plaintiffs upon the findings will be ordered upon appeal.</p> <p>Id.—Neglect of Examination—Conclusion of Law—Reason for Decision.—A finding placed in the conclusions of law “that by reason of their neglect and failure to properly examine the property which they took in exchange for their property, and to investigate and ascertain its value, equity will not grant relief to the plaintiffs,” is not a misplaced finding of fact, nor properly a conclusion of law, but is in its nature the statement of a reason for decision.</p> <p>Id. — Right to Rely upon Representations — Inequality of Knowledge—Presumption—When á representation is made concerning facts of wh