Pittsburg Life & Trust Co. v. Northern Cent. Life Ins.

Citations

• 140 F. 888
• 1905 U.S. App. LEXIS 4853

Syllabus

<p>1. Fraud — Action fob Deceit — Grounds.</p> <p>An action for deceit is based on fraud, and to sustain it there must not only have been false representations, but, contrary to the rule in-suits for rescission, they must have been made fraudulently and intentionally, or so recklessly and without concern as to their truthfulness as to be the equivalent of actual fraud.</p> <p>[Ed. Note. — For cases in point, see vol. 23, Cent. Dig. Fraud, §§ 3 — 5.]¡</p> <p>2. Same — Facts Considered.</p> <p>Plaintiff purchased the business and assets of defendant life insurance company, and in the examination into defendant’s condition made by plaintiff’s representative before the sale a list of policies was used, which was furnished by defendant’s officers and had been previously prepared for its own use and information. After the sale it was found that there were errors in said list' in stating the character of the policies, and, that a larger reserve fund was required than that shown by the computation based thereon, and which, under the terms of the sale, defendant turned over to plaintiff. Held, that such facts would not support an action for deceit, to recover as damages the amount of such additional reserve; there being no evidence that the list was furnished with any actual intention to defraud.</p> <p>[Ed. Note. — For cases in point, see vol. 23, Cent. Dig. Fraud, §§ 3-5.]</p> <p>3. Same — Effect of Misrepresentations — Examination by Purchaser.</p> <p>Where a prospective purchaser undertakes to make, and does make, an investigation of his own of the property, and the seller does nothing to prevent it from being as full as is desired, the purchaser cannot after-wards be heard to say that the seller made misrepresentations, which he relied upon to his hurt.</p> <p>[Ed. Note. — For cases in point, see vol. 23, Cent Dig. Fraud, §§ 17-21; vol. 43, Cent. Dig. Sales, §§ 65, 66, 90.]</p> <p>4. Same — Expression of Opinion.</p> <p>Defendant life insurance company, among the assets