Beck v. Hoagland

STEPHENS, J.,

pro tem.

Respondent was awarded a judgment for the sum of $2,000 upon a complaint alleging fraud against appellant and asking for a judgment of $4,000 as damages. The answer denies the existence of any fraud or misrepresentation and sets up as a second defense that the complaint does not state facts sufficient to constitute a cause of action and a third defense that the action is barred by the statute of limitations. The appellant here was the defendant below.

Practically all, if not all, of the persons concerned in the controversy were interested in spiritualism and either belonged to or attended the same church. Appellant was a medium and the pastor of the flock. A Dr. Ooolidge was promoting an automatic automobile gear shift, and appellant was interested with him. Appellant advised respondent to invest money in the project through the direction, as she claimed and as respondent believed, of a spirit guide. She also expressed the view as her own opinion that the invention was meritorious and would be a great success. There is no doubt but that respondent put great credence in the honesty and integrity of appellant personally and in the genuineness of the spirit messages said to have been spoken through her. Dr. Ooolidge also spoke of the invention in glowing terms, and on the twelfth day of January, 1923, respondent paid Dr. Ooolidge $4,000 for an interest therein.

The government had issued patents upon the invention, and there is evidence that engineers and mechanics had approved the principles thereof. Some time in 1923 it was evident to all closely associated in the enterprise that the invention was not as perfect as it had been represented to be and would not fit all cars except Fords, as it had been represented it would do. In fact the apparatus as it was then planned was impractical. Two engineers were engaged to work upon the problem and they made improvements and these were patented. In July of 1923 these engineers were at respondent’s home and communicated to him the fact that the original device was not capable of doing what it had been represented to him as being capable of doing.

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The situation was such that respondent either should have known the frailties and faults of the device or was put upon his inquiry regarding them. It is certain that he then knew that the possibilities of the device were far less than they had been represented to him as being.