Gage v. Langford

McCLOUD, Chief Justice.

The principal issue in this contract case is whether the defendant who establishes fraud in the inducement as an affirmative defense, but retains valuable consideration received under the contract, must establish the extent of his damages when sued on the contract.

F. L. Livingston, the owner of a promissory note in the original principal sum of $550,000, sued the maker, Hardy Gage, for the unpaid balance. Gage alleged fraud in the inducement as an “affirmative defense” to payment of the note, and also filed a cross action against Livingston, Bill Briscoe, and G. E.…