Stone v. Walker
Supreme Court of Alabama
Appeal from City Court of Birmingham ; 'H. A. Sharpe, Judge. Bill by Kinzea Stone against A. E. Walker, as Superintendent of Banks, and another, to rescind contract of subscription to bank stock. From a decree for respondents, complainant appeals. Application for rehearing overruled; Anderson, C. J., and McClellan, J., dissenting.
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Appeal from City Court of Birmingham ; 'H. A. Sharpe, Judge. Bill by Kinzea Stone against A. E. Walker, as Superintendent of Banks, and another, to rescind contract of subscription to bank stock. From a decree for respondents, complainant appeals. Application for rehearing overruled; Anderson, C. J., and McClellan, J., dissenting. The letter referred to is as follows: “W. N. Malone, City — Dear Sir: I think it would be a. good idea to get a short statement signed .by Mr. Jackson and Mr. Hutton, too, if here, as trustees for the incorporators showing the following facts so that we can exhibit…
1Opinion of the CourtMayfield, J.
If this were a suit between man and man, or between two individuals, under the facts averred, all would concede that the bill contains equity, and that it was not subject to the demurrer interposed.
The following principles are well settled by the authorities, or are patently correct.
[1] A material false statement, relied upon by the other party in ignorance of its falsity, and which materially influences him to enter into the contract, constitutes a fraud which will authorize a rescission. Sledge v. Scott, 56 Ala. 202; Perry v. Johnston, 59 Ala. 648; Davis v. Betz, 66 Ala. 206; Rice v.…
2Cases cited47 opinions
- Mead v. . BunnNew York Court of Appeals · 1865
- Moore & Handley Hardware Co. v. Towers Hardware Co.Supreme Court of Alabama · 1888
- Bosher v. R. & H. Land Co.Supreme Court of Virginia · 1892
- Hafer v. ColeSupreme Court of Alabama · 1912
- Merritt v. EhrmanSupreme Court of Alabama · 1896
42 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Cartwright v. BralySupreme Court of Alabama · 1928
- Williams v. BedenbaughSupreme Court of Alabama · 1926
- Nelson Realty Co. v. Darling Shop of Birmingham, Inc.Supreme Court of Alabama · 1957
- Groover v. DardenSupreme Court of Alabama · 1953
- Navco Hardwood Co. v. BassSupreme Court of Alabama · 1925
22 more not listed; retrieve them via the Exa API.