Parker v. Brown

THE COURT.

The complaint in this action is in two counts, one asking damages for breach of contract; the other seeking damages because of fraudulent representations inducing the execution thereof. The contract was between plaintiffs and the incorporated respondent, hereinafter referred to as “corporation”. The individual respondents were connected with the corporation. H. T. James was president and sole stockholder. The specific capacity of Snyder is not called to our attention.

On the 23d of July and 10th of December, 1927, it is alleged in the first cause of action that two several contracts were entered into between appellants and corporation, wherein and whereby the corporation agreed in the first contract to furnish and deliver twenty motion picture films for exhibition in the Dutch East Indies, and in the second contract, six motion picture films for exhibit in Japan. Of these films, approximately 21 were delivered, and the breach is predicated upon corporation’s failure to deliver the balance. The second cause of action is primarily predicated upon the falsity of the representations that the corporation owned the films, which it had failed to deliver in accordance with its contracts ' so to do, and that those films which were not delivered by corporation were not because the corporation did not at the time of the execution of the contracts, or at any time, own them or have the right to deliver them. In this latter cause of action, plaintiffs requested compensatory and punitive damages. During the course of the trial which was before a jury, a nonsuit was granted as to the individual respondents, and the ease was concluded as to corporation alone, the jury bringing in a verdict against corporation for $1300 actual damages and $5,000 exemplary damages. Thereafter, motion for new trial was made which was granted on all grounds set forth in the notice of motion for new trial (which included all the statutory grounds), the order itself specifying insufficiency of the evidence as one of the grounds. The foregoing proceedings gave rise to two appeals, one from the order granting a new trial, and the other from the order granting a nonsuit on motion therefor by the individual respondents.

[504]

The order of nonsuit will be treated first. We accept appellants’ contention that individuals who are parties to the consummation of a fraud are equally responsible with the person with whom a contract is made induced by such fraud.