Gilluly v. Hosford

Citations

• 45 Wash. 594
• 88 P. 1027
• 1907 Wash. LEXIS 520

Syllabus

<p>Sales — Fraud—Corporate Stock — Evidence—Sufficiency. In an action by a vendee for deceit in the sale of corporate stock, the evidence is sufficient to sustain findings to the effect that the vendor made fraudulent representations concerning the dividends that would be paid on the stock, although he testified that he made no representations and never met the plaintiff until the consummation of the sale, where the plaintiff testified that the representations were made by the defendant at an interview prior to the sale, and she was corroborated by one witness to the extent that the defendant met and conversed with her at that time, and where it further appears that two sales of stock were made, about two months apart, and during the interval the defendant paid the plaintiff dividends for two months on the first stock purchased corresponding with the alleged representations, and which were greatly in excess of the actual dividends earned during that time.</p> <p>Same — Diligence of Vendee — Reliance on Representations. A vendee purchasing stock in a corporation, and having no knowledge of the assets or business of the corporation, may rely on representations of the vendor as to the value of the stock and the amount of dividends that the stock would yield, without making an investigation to ascertain the facts.</p> <p>Same — Representations as to Values — Opinions. Representations by the president and manager of a corporation as to the value of the corporate stock and the amount of dividends that it would yield are not mere expressions of opinions, but are actionable if false.</p> <p>Same — Evidence—Similar Facts — Showing Value. In an action by a vendee for fraudulently representing the value of corporate stock to be one dollar per share, it is error to exclude evidence that at the time of the sale the defendant was“ making similar sales or offering to sell the same stock at fifty-five cents per share, the same being admissible on the question of value and as affect