St. Louis & Southeastern Railway Co. v. Rice

Citations

• 85 Ill. 406

Syllabus

<p>1. Fraud—-false representations. Evei-y false affirmation does not amount to a fraud. A knowledge of the falsity of the representations must rest with the party making them, and he must use some means to deceive or circumvent.</p> <p>2. Same—to moid a settlement. Where a civil engineer, on settlement of his account with a railway company, was induced to accept bonds of the company in payment, on the representations of the president of the company that the bonds were worth eighty-five cents on the dollar, and that the railroad had, up to that time, paid all expenses of its operation and the interest on its indebtedness, and it afterwards appeared that the company had paid all expenses and interest as stated, but it was not from the earnings of the road, and it was not shown that the president had knowledge of this fact, and it was not shown in evidence what was the value of the bonds at the time, but only that some three months afterwards they were of little value, it was held, that the facts did not show such a fraud as to authorize an opening of the settlement, and a suit to recover for the services rendered.</p> <p>3. Settlement—may he moided for fraud. A settlement of a claim for services by taking certain bonds in full, may be abandoned by a party, and he be allowed to sue on his original account, if he was induced by fraud to accept such bonds in settlement, by bringing them into court.</p>