Ferro v. Lagomarsino

THOMAS, J.

This is an action brought to recover the sum of nine thousand one hundred dollars, claimed by plaintiff for alleged misrepresentation as to the value of certain shares of stock in the Theatre Improvement Company, a corporation, such misrepresentation being alleged as follows: “. . . defendant stated and represented to plaintiff that the capital stock of the Theatre Improvement Company . . . was worth the sum of One Hundred Thirty ($130.00) Dollars, and of the market value of the sum of One Hundred Twenty-five ($125.00) Dollars per share, and that it was then earning and paying dividends at the rate of one-half per cent per month or six per cent per annum on the par value of One Hundred ($100.00) Dollars per share, and then and there delivered to plaintiff a certain statement which defendant stated and represented to plaintiff was a true and correct statement of the financial affairs of said Theatre Improvement Company, which said statement was in words and figures as follows, to wit:

“ ‘ Trial Balance Theatre Imp. Co.

To August 1st, 1916, from May 1st, 1913.

W. T. Wyatt Co.............. . 3,345.00

Central Bank........'......... 929.17

Dividends.................... . 12,572.50

Expense ...................... . 12,531.05

Real Estate & Improvements.., . 70,326.25

Loss—Gain................... 413.29

By Capital Stock........... 53,500.00

‘1 Surplus............... 14,105.10

“ Rents—Income .......... 32,512.16

$100,117.26 100,117.26’

[743]

“That plaintiff believed that all said statements and representations so made by defendant were true, and relying wholly on the truth thereof, on or about the 1st day of October, 1916, plaintiff purchased one hundred and forty (140) shares of the capital stock of said Theatre Improvement Company from defendant for the sum of Seventeen Thousand Five Hundred ($17,500.00) Dollars, and paid to defendant said sum of $17,500 by accepting the said . . . shares . . . from defendant as part of the purchase price of $67,500 paid by defendant to plaintiff for 587% shares of the capital stock of the Del Norte Land Company, a corporation, sold to defendant by plaintiff.”