Williams v. Beltz

Citations

• 30 Del. 360
• 7 Boyce 360
• 107 A. 298
• 1919 Del. LEXIS 37

Syllabus

<p>1. Fraud—Misrepresentations—question for Jury.</p> <p>It was for the jury to determine whether representations by a seller of stock that the company had no indebtedness related to an indebtedness existing when the representations were made, or related to obligations or liabilities then existing, or to a liability contingent on future conditions; there being some evidence on the subject in the buyer’s action for fraud.</p> <p>2. Fraud—Damages—Law Governing—Contract Induced by Fraud.</p> <p>Where a contract for the sale and purchase of stock was made and performable in Pennsylvania, the law of Pennsylvania should be applied, if there is established in that state a settled rule as to the measure of damages from fraud in the sale of stock.</p> <p>3. Fraud—Misrepresentations—Damages—Question for Jury.</p> <p>In an action for fraud in the sale of corporate stock, defendants having represented the company had no outstanding obligations, the effect of the existence of a liability on the part of the company to a defendant on the value of the shares was for the jury to determine, in fixing damages under the applicable Pennsylvania rule that the difference between price and value was the measure.</p> <p>4. Fraud—Misrepresentations.</p> <p>In an action for fraud in the sale of corporate stock, the sellers having represented the company had no outstanding obligations, since the alleged misrepresentation was of a fact affecting the value of the stock, the jury could consider the subject-matter of the representations in fixing damages under the applicable Pennsylvania rule that the measure was the difference between price and value.</p> <p>5. Fraud—Misrepresentations—-Reliance.</p> <p>The buyer of corporate stock under representations that the company had no outstanding obligations could not recover as for misrepresentations and fraud on account of the purchase of any shares after knowledge of the existence of a liability of the company.</p> <p>6. Limitation of Actions—Discover