Gray v. Reeves

Citations

• 69 Wash. 374
• 125 P. 162
• 1912 Wash. LEXIS 913

Syllabus

<p>Fbatjd—False Representations—Liability-—Inducements. There is actionable fraud for which recovery may be had, where the defendant induced the plaintiff to purchase mining stock relying on the element of friendship, the defendant’® experience as a mining man, the promise of a certain fortune, and the false representations that the stock was nonassessable and that the money paid would be used for the development of the property.</p> <p>Corporations—Sale of Stock—Rescission—Fraud. The purchaser of mining stock is entitled to rescind where it was represented that the same was treasury stock and that the money paid was to be used in development, when in fact it was the personal stock of the seller.</p> <p>Equity—Laches—Statute of Limitations—Mining Stock and Property. Laches will not prevent the recovery for fraud in the sale of mining stock, where there is no element of estoppel or any special circumstance rendering inequitable the prosecution of an action within the time fixed by the statute of limitations; mining stock not being within the rule that the doctrine of laches is peculiarly applicable to mining property, when the corporation and its property were not involved.</p> <p>Damages—Interest—Fraud. Interest is recoverable as a measure of damages where money is wrongfully obtained by fraudulent representations on the sale of stock which was of no value to the purchaser.</p>