McFeron v. Shoemaker

Citations

• 73 Wash. 450
• 131 P. 1126
• 1913 Wash. LEXIS 1620

Syllabus

<p>Corporations — Stock—Sales—Fraud—Rescission. Where a sale of corporate stock was induced by false representations as to properties at a distance and the principal office of the corporation was in a distant state and the facts not easily ascertainable, the purchaser may rely thereon, and rescind on discovering the fraud.</p> <p>Cancellation oe Instruments — Evidence—Degree of Proof. The evidence for rescission of executed contracts and reconveyances of • real property must be clear and convincing.</p> <p>Equity — Laches—Sale of Corporate Stock. While laches to prevent rescission for fraud depends upon the circumstances of each ease, a delay of four weeks after discovery of the fraud, in commencing suit to rescind a sale of corporate stock, will not amount to laches, where there was no laches in not earlier discovering the fraud.</p> <p>Cancellation of Instruments — Relief — Liability of Subsequent Grantee. Upon decreeing rescission of a conveyance of real estate for fraud, after the fraudulent grantee had, with his wife, mortgaged the property, and had later passed the title to his wife, who was not a bona fide purchaser, it is error to direct a personal judgment against the wife for the amount of the mortgage, in case of her inability to reconvey free and clear of all incumbrances.</p>