Case ID: ny_230/html/0613-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

Amos L. Prescott, Respondent, v. Joseph J. O'Donohue, Jr., et al., Defendants, and Alwyn Ball, Jr., Appellant.
    
      Fraud — false representations as to solvency of maker and indorser of promissory note.
    
    
      Prescott v. O’Donohue, 188 App. Div. 958, affirmed.
    (Argued December 9, 1920;
    decided February 4, 1921.)
    Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered June 13, 1919, unanimously affirming a judgment in favor of plaintiff entered upon a verdict. The action was to recover for fraud in inducing plaintiff and one Gude to advance to the Dover White Marble Company the sum of $50,000 upon its notes indorsed by the Continental Finance Company. The complaint alleged that the defendant Ball, a director of the Continental Finance Company, for the purpose of inducing the making of the loan, stated to one Miller, who represented the plaintiff and Gude, that the financial statement of the Continental Finance Company which had been submitted by Sturgis, a co-director with Ball in the Continental Finance Company, and its president and treasurer, was correct; that the Continental Finance Company was financially sound and would be able to meet under any circumstances the payment of the notes, even if the Dover White Marble Company should not be able to meet them; but that the Dover White Marble Company was financially sound and would be able to meet the said promissory notes. It is charged that the financial statement was false to the knowledge of this defendant, and that at the time both the Dover White' Marble Company and the Continental Finance Company were to the defendant’s knowledge insolvent.
    
      Nathan L. Miller for appellant.
    
      Charles E. Hughes for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: His cock, Ch. J., Chase, Pound, McLaughlin, Crane and Andrews, JJ. Not sitting: Cardozo, J.