McRae v. Lonsby

Citations

• 130 F. 17
• 64 C.C.A. 385
• 1904 U.S. App. LEXIS 4127

Syllabus

<p>1. Fraudulent Representations — Questions fob Jury.</p> <p>Where, in an action on a note given for the machinery and the sunken hull of a vessel, defendants by special plea alleged that the note was given by reason of false representations as to the condition of the hull, on which defendants relied, and there was evidence that when defendants attempted to ascertain the condition of the hull the water over and about it was so disturbed and roily that the hull could not be seen, and that defendants relied on the representations, which were warranted to be true, it was proper for the court to submit to the jury whether the facts could have been readily ascertained by inspection, and whether defendants in fact relied on the* truth of such representations.</p> <p>2. Same — Contracts — Rescission — False Representations — Warranty— •Breach.</p> <p>Where defendants claimed the right to rescind a contract by reason of the falsity of representations made by plaintiff concerning the property purchased, it was immaterial whether defendants relied on the representations per se, or on an express warranty of their truth.</p> <p>3. Same — Special Defense — State Practice — Notice.</p> <p>Under the law of Michigan that a notice of special defense to he attached to a plea of the general issue is sufficient if it informs the plaintiff of the substance of the matter proposed to be shown under it, a notice of special defense to an action on a note given for the price of the machinery and sunken hull of a vessel, alleging that at the time of the purchase the hull was submerged, and that plaintiff induced defendants to make the purchase by representations detailed with regard to the condition of the hull, its value, étc., as of his own knowledge, and warranted such representations to be true, but that the same were false, and that it was thereafter discovered that the hull was worthless, whereupon defendants demanded their note and their expenses incurred in endeavoring to raise the h