Standard Horseshoe Co. v. O'Brien

Citations

• 88 Md. 335
• 41 A. 898
• 1898 Md. LEXIS 213

Syllabus

<p>Fraud — Purchase by Insolvent — Sufficiency of Evidence— Rights of Defrauded Vendor — Form of Verdict in Replevin — Appeal.</p> <p>Defendant, the acting member of a firm, stated to the plaintiff that he had a cash capital of two thousand dollars. After making a voluntary transfer of one-half of this sum to his partner, defendant bought from plaintiff on credit, goods to the amount of twenty-six hundred dollars. Soon after, he made an assignment for the benefit of creditors. Held, that there is legally sufficient evidence from which a jury may find that defendant was insolvent and knew he was insolvent, and had no reasonable expectation of paying for the goods so purchased.</p> <p>When goods are bought on credit by a person then insolvent, who has no reasonable expectation of paying for them, he commits a fraud which entitles the seller to rescind the contract and sue in replevin for the goods.</p> <p>Code, Art. 75, sec. in, provides that every verdict in replevin shall ascertain separately the value of the goods, and the damages, if any, for their detention. Held, that a verdict in favor of the defendant for the return of the property replevied and one cent damages, is erroneous.</p> <p>No objection can be made on appeal on account of the irregularity of the verdict, unless there be a motion in arrest of judgment; Code, Art. 5, sec. 9, providing that this Court shall not decide any question that does not appear to have been tried by the Court below.</p>