Boylan v. Pacific Coast Securities, Ltd.

STURTEVANT, J. The plaintiffs commenced an action against the defendants to recover a judgment for alleged damages caused by the alleged deceit practiced by the defendants in the sale to the plaintiffs of a block of shares of [40]the capital stock of the Colombia Royal Metals Corporation. That corporation is the owner of, and is operating, mines in' Colombia, South America. The action was tried before the court sitting with a jury. The jury returned a verdict in favor of the plaintiffs and fixed the amount of the damages in the sum of $2,000. Judgment was entered on the verdict. Thereafter the defendants made a motion for a new trial on several grounds, among others, that the evidence was insufficient to justify the verdict. The trial court granted said motion on the ground last stated and thereupon the plaintiffs appealed from said order.

The sale involved was made at Auburn in Placer County, by Benjamin Lachman, acting as agent for W. T. Dineen, a stockbroker doing business under the fictitious name of Pacific Coast Securities, Ltd. The negotiations were commenced in certain conversations held between Mrs. Boylan, one of the plaintiffs, and Mr. Lachman. The plaintiffs, in their amended complaint, set forth a charge as follows:

“That on or about June 23, 1932, said defendant wilfully, falsely and fraudulently represented and stated to plaintiffs that the capital stock of the Colombia Royal Metals Corporation, Ltd., was worth many times more than its actual value; that if plaintiffs would purchase and hold a number of shares of the capital stock of the aforesaid corporation plaintiffs would double their investment of money within a year; and that, in addition to the aforesaid false and fraudulent representations of fact, the said defendant further fraudulently represented and stated to plaintiffs that they would receive monthly dividends upon any capital stock of said Colombia Royal Metals Corporation, Ltd., which they might purchase, and that the capital stock of the Colombia Royal Metals Corporation, Ltd., on or about June 23, 1932, was worth the sum of Four ($4.00) Dollars or more per share. ’ ’ They also set forth an allegation that they were damaged in the sum of $2,520. On the trial both Mrs. Boylan and Mr. Lachman were called and examined as witnesses. Mr. Lachman testified that he did not make any one of the alleged representations and stated to the court what representations he did make and what written documents he exhibited to Mrs. Boylan. Those documents were produced and offered in evidence. At this time the plaintiffs assert that they proved every allegation as to the repre