Continental Insurance v. Equitable Trust Co.

The nature of the cause of action is described in the opinion filed by me herein this day in Special Term, Part VI (127 Misc. 45). The action is for rescission, not for damages.

The two cases in which a defendant has been held liable in an action for rescission, even though he did not receive the purchase price, are Mack v. Latta (178 N. Y. 525) and Lehman-Charley v. Bartlett (135 App. Div. 674; affd., 202 N. Y. 524). In each case recovery against such defendant was allowed on the theory of *51avoiding circuity of action, it being within the contemplation of the court that the defendant directly…