v.
Packard & Company, W. S. Packard and O. C. Steinhauser
The plaintiff is a resident of Des Moines. The defendant is a partnership consisting of two or more [*3] persons. The representations complained of were participated in by more than one person. We shall therefore refer to the defendant in the plural number.
The defendants were engaged in the real estate business in South Dakota. On of the partners .lived in Des Moines. In 1907 the plaintiff was desirous of locating a homestead in South Dakota, and desired to purchase a relinquishment from some occupant of a suitable quarter section for that purpose. He purchased such relinquishment through the agency of the defendants, paying to them $500 therefor. He avers that he made such purchase in reliance upon certain false representations made to him by the defendants, whereby he was deceived and damaged. The substance of these representations, as he charges them, was that the quarter section covered by the proposed relinquishment contained about one hundred and twenty acres of good, level, tillable land and about forty acres of rough land suitable for pasture, and that it would be worth from $12 to $15 per acre when proven up. Upon the suggestion of the defendants, he went to Dakota to see the land. He went upon the land in company with one of the defendants, who purported to show the same to him. The land was known as the northwest quarter of a certain section 20. The rough land thereon was said to be in the northwest corner, whereas the good land lay to the east. The land shown to him corresponded to the description and was satisfactory to him. After his purchase of the relinquishment, he discovered, as he alleges, that he had been misled as to the boundaries, and that the greater part of the good land which was shown to him was included in the northeast quarter of such section 20, and that the land included within his true boundaries was nearly all rough and worthless. The answer of the defendants was in effect a general denial of all fraudulent representations.
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However, the same evidence that proves that a defendant made representations known by him to be false, upon which plaintiff relied to his injury, is ordinarily sufficient, also, to establish the intent to deceive. The intent, being a mere act of the mind of the defendant, is usually established by appropriate inference and presumptions from the overt acts proved. Tn such a case the deceit consists in inducing the action of the plaintiff by representations known by the defendant to be false. It is theoretically possible for one to make representations known by him to be false, and yet without intent on his part to deceive; but this is not the rule. In the Boddy case, supra, the trial court had greatly emphasized the necessity of plaintiff’s proving the “intent to deceive” in addition to the false representations and the scienter, as though it were necessary . to prove this element by some evidence additional to the evidence in proof of falsity of representations and scienter; and he failed to instruct that if the latter were proved the intent could be inferred or presumed. In Ley v. Insurance Company, 120 Iowa, 203, Mr. Justice Weaver makes the following appropriate quotation from Brackett v. Griswold, 112 N. Y. 467 (20 N. E. 379), which is a condensation of [*7] the five elements of this action into five words, viz., “Representation, falsity, scienter, deception, injury.” In Haven v. Neal, 43 Minn. 315 (45 N. W. 612), the Supreme Court of Minnesota states the rule in this wise: “In order to sustain an action for deceit, the fraudulent intent must be established; but it may be inferred from the fact that the false statements are made with knowledge of their falsity. And where a party who may be presumed to know, or who is in a position to 'know, the truth, deliberately makes unqualified representations in respect to a material matter, in such manner as to import a knowledge by him of their truth, for the purpose of inducing another to act upon them, a similar inference may arise; and in such case, if a party has acted in reliance on such representations, he is entitled to maintain an action for the injury sustained thereby. But the question of fraudulent intent is usually one for the jury. Meyer v. Amidon, 23 Hun (N. Y.) 553; 2 Pomeroy Equity Jurisprudence, section 884; Hazard v. Irwin, 18 Pick. (Mass.) 96; Page v. Bent, 2 Metc. (Mass.) 371; 5 Wait, Actions & Defenses, 436; Salisbury v. Howe, 87 N. Y. 129; Cowley v. Smyth,, 46 N. J. Law, 380 (50 Am. Rep. 432); Humphrey v. Merriam, 32 Minn. 197 (20 N. W. 138).”
Some courts have gone to the extent of holding that the presumption of intent is conclusive, if knowledge of the falsity of representation be shown, but such is not the rule adopted in the majority of jurisdictions, and it is not the rule in this state. The fact, therefore, that the intent to deceive may be presumed or' inferred from defendants’ knowledge of the falsity of representation does not eliminate it as an element from plaintiff’s case, nor does it relieve him from the burden of proof thereon. The fact remains that before he can recover the jury must find, from the evidence as a whole, in the light of all the circumstances shown, that the defendants intended to deceive.
Turning to the instruction under consideration, it does [*8] no more than to lay this burden upon the plaintiff. It does not emphasize this element, nor require it to be proved - by any different or additional evidence than that relating to the falsity of the representations, and the knowledge thereof. If this instruction had stated the rule above indicated as to inference and presumption of intent, it would be quite complete. But this omission is not a ground of attack upon it, nor was any request made for the statement of such rule. We think, therefore, that this instruction does not afford a sufficient ground to justify a reversal of the judgment.
Y. Instruction No. 2, as given by the trial court, was as follows:
Particular complaint is directed against the following [*9] portion of the above instruction: “That such statement was made as a matter of fact and knowingly, and with the purpose and intent at the time to deceive the plaintiff.” The proper construction to be put upon the sentence last quoted is not clear. In argument counsel for both parties construe this expression to mean that the plaintiff must prove that the defendants showed him a false boundary or location, and that they knew the falsity of such boundary or location. Quoting from appellee’s argument: “It asked him to establish that he did not get the land that was shown him; that the defendants knew they were not showing him the land ultimately conveyed to him. ... It-must be remembered this is an action at law, and for deceit and misrepresentation intentionally made, and certainly knowingly made. We will admit, for the sake of argument, that the defendants knew they were showing him the wrong land, and the verdict of the jury was that the contention of plaintiff was not sound. ... If, in fact, the statement as made concerning the location of the corner is believed to be true, and it turns out it is not, the person so making it is not liable, unless he knew the statements were untrue. . . .” Adopting this construction of the instruction, it was clearly erroneous as applied to the pleadings and evidence in this case. '
It will be noted that the particular statement under consideration at this point in the instruction was that relating to the corner or east boundary of the land. The contention of appellant at this point, both by his petition and his evidence, was not that the defendants knew the true boundary and showed to the plaintiff a false one. It was that the 'defendant Steinhauser stated to the plaintiff that he did know the true boundary, and that so professing to know the true boundary, he pointed out to the plaintiff a false boundary. The contention of Steinhauser in evidence was that he did not himself know the true boundary, and that he only exercised and expressed his opinion as [*10] to the boundary pointed out by him. The effect of the instruction as construed was to say that, if Steinhauser was ignorant of the true boundary and did not know the falsity of the boundary pointed out by him, the plaintiff could not recover. Put this ignores entirely the assertion of knowledge which Steinhauser had made. If he asserted that he had knowledge of the true boundary and so asserting purported to point it out, such an assertion is binding upon him; all other elements, of the case being made to appear. In such a case it will not avail him as a defense to say that he did not know the true boundary, and that he pointed out a false boundary by a mistaken opinion. If he asserted knowledge of the true boundary when he knew that he had no such knowledge, this of itself was a false statement, made with knowledge of its falsity. If such statement was followed by the pointing out of a boundary false in fact, it is then immaterial whether he in fact knew such falsity or not. Riley v. Bell, 120 Iowa, 618; Brewing Co. v. Peterson, 130 Iowa, 305; Evans v. Palmer, 131 Iowa, 425. Steinhauser testified: “The place I showed him, what I thought was the east line of his quarter, was about ten rods east of the exact east line.” The effect of the instruction was to give Steinhauser the benefit of his ignorance and mistake as to the boundary, even though he had induced belief, on the part of the plaintiff, by his previous assertion of knowledge on that question.
We have considered whether we could put upon the instruction at this point a different construction from that adopted by counsel for the parties. “That such a statement was made as a matter of fact” might be construed (1) that the statement referred to was in fact made, or (2) that the statement was made as a statement of fact, and not as an expression of opinion. The word “knowingly” in this connection might be construed as meaning (1) that Steinhauser knew that he made the statement as to the boundaries, or (2) that the truth or falsity of the [*11] purported fact stated by him was within his knowledge, viz., that he knew whether the boundary pointed out by him was true or false. We think that the language used at this point in the instruction will not bear any other construction than such as are here suggested, or else the construction adopted by counsel which we have already considered. Whichever construction thus suggested might be adopted, the instruction deprives the plaintiff of the benefit of his allegation and evidence at this point. If we look beyond the language of the instruction, we are impressed that the probable intention of the court was to say that, if the jury found that the statement as to pointing out the boundary was made by Steinhauser as a statement of fact, within his actual knowledge, and not as a mere expression of opinion, then he would be bound by the falsity of the statement. The language of the instruction, however, fails in its expression of such thought, and we can not presume that the jury could -have supplied the omission.
We can not avoid the conclusion that, from any point of view, the instruction was misleading. It iyas not necessary for the plaintiff to prove that Steinhauser knew the true boundary; it was sufficient if he proved that Steinhauser professed to know, and so professing pointed out to plaintiff an alleged boundary, with intent to deceive. The tendency of the instruction was to convey to the jury the idea that, if Steinhauser did not himself know the eastern boundary, he would not be liable for a mistake of opinion. However correct this might be as an abstract proposition of law, it was inappropriate and misleading in its application to the pleadings and evidence in this case.
Some other alleged errors are argued, but they are such as are not likely to arise on a new trial, and we will not deal with them. Eor the error above indicated in instruction 2, the judgment below must be reversed.