Farwell v. Colonial Trust Co.

Citations

• 147 F. 480
• 78 C.C.A. 22
• 1906 U.S. App. LEXIS 4262

Syllabus

<p>1. Equity — Adequate Remedy at Law.</p> <p>The adequate remedy at law which will deprive a court of equity of jurisdiction is a remedy as certain, complete, prompt, and efficient to attain the ends of justice as the remedy in equity.</p> <p>[Ed. Note. — For cases in point, see vol. 19, Cent. Dig. Equity, §§ 151, 152; vol. 23, Cent. Dig. Fraud, § 14.]</p> <p>2. Same.</p> <p>An action at law against the vendor of the stock of a corporation for damages is not as adequate, nor, is it as complete or efficient, as a suit in equity against the vendor and the corporation to rescind the sale, to recover the purchase price, and to relieve the complainant from liability to the corporation on account of the stock.</p> <p>[Ed. Note. — For cases in point, see vol. 19, Cent. Dig. Equity, §§ 147-156.]</p> <p>3. Sale — Rescission—Misrepresentation Requisite to Invoke.</p> <p>The misrepresentation which will induce a court of equity to avoid a contract or sale must be material, inducing, damaging, and calculated to deceive.</p> <p>[Ed. Note. — For cases in point, see vol. 43, Cent. Dig. Sales, §§ 65-67.]</p> <p>4. Same — Promise oe Peopiiecy Will Not Effect.</p> <p>A promise, a prophecy, an expressed opinion or belief, concerning future events or conditions, furnishes no ground for the rescission of a contract or sale.</p> <p>The subject of an actionable misrepresentation must be the existence or nonexistence of a fact at the time the statement is made.</p> <p>[Ed. Note. — For eases in point, see vol. 43, Cent. Dig. Sales, §§ 65-74.]</p> <p>5. Same — Inadequate Representations to Effect — Facts.</p> <p>A promoter sold the stock and bonds of a bridge company under the representations (1) that the stock, which was not then issued, would be full-paid and nonassessable, and it was not so; (2) that the bridge company had a contract with a railroad company that it should receive 5 cents for each passenger whom the railroad company carried over the bridge, and it had no such contract, bu