Morrow v. Wilson

Citations

• 266 Pa. 394
• 109 A. 632
• 1920 Pa. LEXIS 580

Syllabus

<p>Evidence — Fraud—Silence—Duty to speak — Exchange of real estate — Principal and agent — Trust company.</p> <p>1. Silence is a fraud only when there exists a duty to speak.</p> <p>2. Where an agent deceives and defrauds hi-s principal in an exchange of the principal’s suburban real estate for a block of houses in a city, a trust company cannot be held liable as a partieipant in the fraud, where it appears that the company took no active part in procuring the agreement of exchange, or participated in the illegal profits made by the agent, and its only connection with the transaction was, first, as insurer of mortgages on the houses and their completion; second, in connection with the creation of a ground rent on the suburban property; third, in connection with the settlements of the various transactions, and that all this was done with knowledge of the plaintiffs, and in the regular course of the company’s business.</p> <p>3. In such a case where there is nothing to show a duty on the part of the officials of the company to make disclosure of the facts coming to their knowledge under previously executed agreements, the mere silence of such officials cannot constitute such fraud as would make the company liable to the persons defrauded.</p>