Schweizer v. Tracy

Citations

• 76 Ill. 345

Syllabus

<p>1. Fraud—purchase of goods on false representations may he avoided hy vendor. Where a purchaser of goods represented to the vendor that the stock of goods he then had on hand at his place of business, amounted in value to about $4800; that he had a considerable amount of outstanding debts due him; that he did not owe to exceed $500, and this in Louisville, Ky., and that he owed nothing anywhere else, and thereby obtained credit for goods of the value of about $1900, which he had shipped to his father-in-law, in whose name he did business, while the fact was, that at the time he was indebted in abqut the sum of $5000 to merchants in Chicago, for goods before sold to him, some of which was then due, and did not have the amount of goods he represented: Held, that no title to the goods sold him on the faith of these false and fraudulent representations passed, but that the purchase was voidable, at the option of the vendor, on the ground of fraud.</p> <p>2. Same—right of innocent purchaser from fraudulent vendee. Where a person who has purchased goods upon false and fraudulent representations sells them to an innocent purchaser for value, before they are reclaimed by the vendor, such innocent purchaser will acquire a valid title.</p> <p>3. Same—right of an attaching creditor of the fraudulent vendee. But an attaching or judgment creditor does not stand in the position of an innocent purchaser, as he parts with nothing in exchange for the property, and does not take it in satisfaction of his debt. He takes no greater interest, or better title in the property than his debtor has, and if the debtor has purchased by means of false and fraudulent representations, his vendor may reclaim the goods by replevin against the officer seizing them, under attachment or execution.</p> <p>4. Same—distinguished from the ease of Burnell v. Robertson, 5 G-ilm. 282. In Burnell v. Robertson, 5 Gilm. 282, the debtor had a valid title to the property attached, and the controversy was betwe