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Calvin G. Post vs. Edward C. Clark

Connecticut Supreme Court1868-09
35 Conn. 339

Summary

Holding. The judgment in favor of the plaintiff is affirmed. The defendant is not entitled to retain the money because it was paid under a material misunderstanding of fact, and the defendant has no equitable right to keep funds obtained under such circumstances.

The plaintiff paid the defendant twelve dollars under threat of attachment, believing the casks he had loaned to the defendant were lost in transit. In fact, the defendant had already received the casks and returned them but still demanded payment. The plaintiff lacked actual knowledge of the casks' return because the defendant's demand itself suggested non-receipt, and the plaintiff could not reasonably be expected to suspect fraud. The court held that although adequate means of knowledge are ordinarily treated as equivalent to actual knowledge, the defendant's conduct here prevented the plaintiff from accessing those means by creating a false impression of the situation.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether payment made under misapprehension of material facts may be recovered in indebitatus assumpsit
  • Whether a party may be charged with negligence for failing to discover facts when the other party's conduct prevents discovery
  • Whether means of knowledge available to a party are equivalent to actual knowledge when obtaining payment through misrepresentation

Procedural posture

The defendant appealed a judgment against him in an action for recovery of money paid under mistaken circumstances.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Park, J.

It is familiar law that the action of indebitatus assumpsit for money had and received lies for the recovery of money which ex equo et bono ought to be paid to the party suing for it. The law on this subject is thoroughly considered in the cases of Northrop v. Graves, 19 Conn., 548, and Cobb v. Charter, 32 Conn., 358. The principle of these cases decides the questions in controversy in this case.

It is evident that the defendant has no right in equity and good conscience to retain the money, so far as having any original claim to it is concerned. He had not the slightest demand on the plaintiff. He received the money in payment for casks that were then in his possession. They had been loaned to the plaintiff and returned to him, and although he Was not aware of the fact, still he ought to have informed himself on the subject, inasmuch as the return of the casks was not only in accordance with the contract in relation to them, but also with the line of business he was pursuing. The means of knowledge were in his possession, for his own agent had receipted for them.

But the defendant does not hope to succeed in the case by virtue of any right he had to the money. He relies wholly on the claim that the payment was voluntarily made by the plaintiff. This is a singular position to take under the circumstances. The defendant sent an officer with instruction s to attach the plaintiff’s property unless he paid immediately the sum of twelve dollars for the casks and expenses. The officer performed his duty, and the plaintiff in order .to avoid the attachment of his property paid the demand. The case finds that the plaintiff did not know that the casks had been received by the defendant, but supposed that they were lost on the way to him. He would not have paid the money if he had known this all important fact. He paid the money then without full knowledge on the subject, and the question arises was he guilty of negligence in neglecting to avail himself of the means of knowledge in his possession to ascertain the fact ?

Full and adequate means of knowledge are equivalent to knowledge itself under ordinary circumstances. Martin v. Morgan., 1 Brod. & Bing., 289; West v. Houston, 4 Harr., 170; Forbes v. Appleton, 5 Cush., 115; Sheldon v. South School District, 24 Conn., 88 ; Cobb v. Charter, 32 Conn., 364.

What means of knowledge had the plaintiff that the casks had been received ? He had sent them to the railroad station to be conveyed to the defendant, in accordance with the agreement; and the defendant says that he could have traced them into his hands. But what was there to apprise the plaintiff of this fact ? An officer comes from the defendant with a writ to attach his property, unless he immediately pays the value of the casks. The demand was equivalent to a declaration of the defendant that the casks had not been received. There was nothing whatever to lead him to suppose that the defendant was making a claim upon Mm for the value of casks already in his possession. He could not suspect this without entertaining suspicions of the defendant’s honesty. It comes with poor grace from the defendant to say that the plaintiff was guilty of laches because he believed the casks were lost on the way to him and did not suspect that he was practicing fraud upon him.

We think it is clear that the payment was made under a misapprehension of the facts and that the defendant ex equo et bono has no right to retain the money.

Tiie case might be put on another ground equally tenable for the plaintiff, but it is unnecessary to consider it.

There is no error in the judgment complained of.

In this opinion the other judges concurred.