|
[Berkeley estate
– land sales – false advertising – misrepresentation – Gosford –
Brisbane Water – Tuggerah – Wyong]
Dent
v. Lyons
Supreme Court of New South Wales
Dowling C.J., 9 November 1841
Source: Sydney
Herald, 10 November 1841[1] [2]
Tuesday, November 9.
Before His Honor
the Chief Justice, and
a Special Jury.
In
this case the Solicitor-General, with whom was Mr. Manning, were
for the plaintiff, and Mr. Windeyer and Mr. Broadhurst appeared
for the defendant.
Mr. Manning opened the pleadings.
The Solicitor-general, in proceeding to state
the case, said, that he was afraid the repetition of the words Berkley
Estate, would not be very pleasant to their ears; but both he and
the jury must endeavour to overcome their disgust at the sounds,
and look steadily to the facts of the present case. The plaintiff
by the present action, sought to recover back a sum of money, being
the deposit paid by him on a portion of the Berkley estate, purchased
by him at the auction, which some time back was held by the defendant
Lyons. The Solicitor-General then enumerated the advertised advantages
of the property in question, with which the public have been already
made familiar by the numerous references to them in the late trials,
and concluded by saying, that the present action had been brought
in consequence of the misrepresentations which by the above descriptions
had been practised on the plaintiff, and which he now considered,
entitled him to throw [up his] purchase, and recover his deposit.
Mr. Staddon, examined [by
Mr. Manning]:-- Was
a clerk of Mr. Lyons at the time of the sale of the Berkley estate,
and saw the purchasers sign the sale book. The witness pointed out
the lots in the sale book purchased by Messrs. Dent and Greenwell.
Received two promissory notes from Dent and Greenwell for the deposit
money on the purchase. They were for £68 each. Did not know the
hand-writing in the body of the notes; had heard of advertisements
inserted in the newspapers by Mr. Peek; did not know whether the
advertisement was directed by Mr. Lyons to be copied from one newspaper
into another.
Cross-examined by Mr. Windeyer:
-- The papers handed about the auction room on the day of sale were
not made out by Mr. Lyons; believed that Mr. Lyons had no interest
in the property, and merely sold as the auctioneer of Peek.
On further examination
by Mr. Manning, the
witness pointed out a long succession of entries of lots purchased
by different parties, but which were struck out in consequence of
the sales never having been completed.
Cross-examined by Mr. Windeyer:
- It was a common thing in every sale for some of the purchases
to stand uncompleted; did not know the reason of the lots not having
been taken by the purchasers whose names were attached to them in
the book produced.
Bryce Ross examined by
Mr. Manning: - Was
a clerk at Messrs. Pite and Preston’s: was at the sale of the Berkley
Estate. Remembered papers relating to the property being handed
about the room. Had purchased two lots at the sale; and afterwards
went in a small schooner to inspect his property: started out on
Monday, at one o’clock, and got to East Gosford on Tuesday afternoon.
Three blacks conducted them to the property; Mr. Goodall, the surveyor,
pointed out the different allotments. The front allotments were
about a foot under water. Tried the depth of Tuggerah Beach Lake
by walking through it. It was about two feet and a half deep. The
breakers were close in shore, and the entrance to the lake appeared
to be very dangerous. Saw no road at the back of the front allotments,
and what roads he did see, were only found by parties engaged in
procuring shingles. In returning from East Gosford to Sydney, they
started at twelve o’clock in the day, and got to Sydney about six
in the evening.
Cross-examined by Mr. Broadhurst
– In going to East Gosford, they had stuck for an hour on the flats.
Did not know what winds were blowing that caused the breakers. Knew
that it was blowing weather at the time.
Mr. Goodall examined by
the Solicitor-General:
-- Had inspected the Berkley Estate in his character as surveyor.
Was seven hours and twenty-two minutes going by the steamer from
Sydney to East Gosford, the first time; returned by the steamer,
and made the passage in six hours. Was four hours and fifty-five
minutes in going from East Gosford [?] the Berkley Estate. They
walked at the rate of very nearly four miles an hour. Went over
the estate, and besides measuring the boundary lines thereof, he
surveyed the different allotments for the information of the purchasers.
On number three allotment, there were a few small trees, that would
not rep[a]y the cutting, besides a quantity of tea trees and vines.
Next to this land is a scrubby sandy sort of soil, for a considerable
distance evidently a depo[s]it from the water. The soil was certainly
not a deep black soil, nor were the trees fit for ship-building.
One in a hundred was a fair average of the proportion of the trees
fit for cutting down, lots 41, 42, and 43, are covered by sand and
tea-tree scrub. No road marked, corresponding with that on the vendor’s
plan. Such a road would not be pracricable, on account of Tuggerah
Beach Creek, and Wyong Creek lying in the way. From the outside
of the Berkley Estate to East Gosford is ten miles and chain. There
were gates on private properties lying in the way, and they were
compelled to ask permission of the owners of the properties, to
pass though [sic] these gates. The depth of the latter for about
two hundred yards from the shore, was not up to the breast. The
mouth of the lake was so rough with breakers, that no vessel or
boat could safely enter. Crops growing on the Berkley Estate could
not be shipped there on account of the shallowness of the water.
Cross-examined by Mr. Windeyer – First went to the estate in April last, being employed
for that purpose by Mr. Cooper Turner the solicitor. Some lots have
more wood on them than others; and the estate varies considerably
in its soil, in different parts. The soil generally sandy. The best
brush soils had a very trifling proportion of sand in them, consisting
chiefly of decomposed vegetable matter. The difference between high
and low water marks, might be five or six feet; and the tide at
the time some of the party walked in the lake, was very nearly at
flood. Saw no road marked out, it was a mere cattle track, which
in England would be described as a foot path.
James Reynolds examined
by Mr. Manning: -
Was at the sale; there were a great number of copies of the plan
of the property on the counter of the sale room; witness asked Mr.
Lyons if the plans were true, and the answer was, they were.
Cross-examined by Mr. Broadhurst:
- Saw Dent, one of the plaintiffs, after he (witness) had been to
see the land, and told him (Dent) he was robbed, and that the land
was in fact very different from the description of it; Dent told
him he did not believe it, and he knew different.
William Turton: - Was at
the sale in question, and inquired of Mr. Lyons about the character
of the property; Mr. Lyons referred witness to Mr. Wells, the surveyor,
saying, “You need not be afraid, when you see the surveyor of the
property purchasing,” People afterwards surrounded Mr. Wells, and
appeared to be intending purchasers; this was the same Wells who
afterwards went with them, the purchasers to look at the property.
Went to the property a second time; walked round the property, but
saw no sign of any road; believed he was more particular in observing
the land than any others of the party; observed the lake, in which
birds were standing upright at a considerable distance from the
shore; lots were knocked down to Wells at the sale; he was bidding
against other parties; Mr. Lyons, at the sale, laid great stress
on the new road from the estate to Wyong and Maitland; witness would
never have bought but for such account of the new road.
Cross-examined by Mr. Windeyer:
- Paid the first bill to Lyons a short time after his (witness’s)
return from viewing the property; paid the bill because he did not
know what else to do from his ignorance of the law; witness met
Dent about a fortnight after returning from the land, and asked
him how he liked his purchase, saying at the same time that he (witness)
had been to see the land, and that his (Dent’s) land, was water;
Dent got into a passion, and would not believe witness, but walked
away; The purchasers of the property had never regularly met together
to consult, at the Bulls Head, or at any other place. Had not seen
Mr. [Dent] a dozen times in this last four months.
Rober[t] Anderson gave
his evidence, varying in no material [p]oints from that of the previous
witnesses; adding t[hat] he had never during a residence of fifteen
years [at] the district in question, seen any thing larger than
[a] boat put across the mouth of the Tuggerah Beach La[ke].
Peter Magner examined by
the Solicitor general:
- He had attended at the sale, and at the request of Mr. Peek had
purchased on his account three or four allotments; Mr. Peek having
expressed a wish to have a few lots bought in for himself, if they
did not fetch a certain price.
Cross-examined: - Went
to the sale, merely to buy for Mr. Peek; and did not bid for any
lots after other people; had bidden beyond the limit set by Mr.
Peek. Peek’s instructions were contained in a paper; - which witness
had long since lost.
Mr. Windeyer now applied to his Honor to strike
out the evidence of the witness, the paper not being produced, nor
proved to be lost.
His Honor overruled the objection, upon which
a party of the name of Hargreave was called, who stated that he
also at the request of Mr. Pe[e]k had purchased a lot, on behalf
of that gentleman. Recollected bidding for three or four lots, all
of which save one, were knocked down to other parties.
Cross-examined by Mr. Broadhurst:
- Would not swear he had bidden for more than lot [?]2. Mr. Peek
had said to witness, that he (Peek) did not wish the property to
be sacrificed, and therefore desired witness to bid for [cer]tain
lots, up to a certain mark. Some of the land was as fine as [t]he
witness had ever seen; and he had been a farmer for several years.
Lots 41, 42, and 43, were as fine land as any in the Colony. On
these lots there were many trees fit for sawing purposes. Considered
East Gosford a flourishing place ever since.
William Underwood: - Had
been to Brisbane Water a short time after the sale of the Berkley
estate. Wished to pass the bar in a whale boat, but c[o]uld not
do so for the breakers. The weather at the time was tolerably fair;
and the boat might be about six inches deep in the water.
Cross-examined by Mr. Windeyer:
- Had never been to Tuggerah Beach before or since. Battley had
taken witness and his companions in custody, taking them for a party
of bushrangers. Seeing the breakers they knew the boat could not
carry them, so then they carried the boat. They passed over the
land with it, until they reached the lakes.
William Rowe stated, that
he was one of a surveying party in company with Mr. Larner, the
government surveyor, and that he knew of no road to Wyong or Maitland,
any part of which ran nearer to the Berkley estate than three or
four miles. The timber was very poor, not more than one tree out
of a hundred being fit for sawing purposes.
This closed the plaintiff’s
case. It being now past 4 o’clock, the Chief Justice, on the suggestion of the
Counsel for the defendant, deferred going into his case until to-morrow
morning at 10 o’clock.
Dowling J., 10 November 1841
Source: Sydney Herald, 11 November 1841
Wednesday.
Before His Honor
the Chief Justice, and
a Special Jury.
DENT v. LYONS, adjourned
Mr. Windeyer in opening the defendant’s
case, moved the Court to nonsuit the plaint[i]ff on the authority
of a case in the 2nd East’s R[e]ports, which went to show that where
a party had paid money, with a full knowledge of the facts, or the
means of obtaining the knowledge, his paying that money although
in ignorance of the law, would be a bar to such an action as the
present. And in that respect distinguished this from the previous
actions.
The Chief Justice said, that the point was
too important for him to take upon himself to decide alone, but
he would reserve it, and let the case go to the Jury.
Mr. Windeyer then addressed the Jury for the
defendant. He said that it would be unnecessary for him to impeach
the case made by the only one of the plaintiff’s witnesses, who
spoke to any one of the definite facts relied upon by the other
side. Mr. Goodall, the Surveyor, stated that lot 3 was of the description
given by the defendant’s advertisement, but had certainly proved
that there was no large timber on it. If, however, they looked to
the advertisement, they would find that no timber at all was pretended
to be upon lot 3. Again Mr. Goodall proved that lots 41, 42, and
43, were not in his opinion heavily timbered, but neither was that
promised by the advertisement. Other lots were spoken of as having
almost inexhaustible supplies of timber, but it so happened that
these lots were only spoken of, as being timbered with black butt,
blue gum, &c., and Mr. Goodall had proved that they were all
so timbered. The next point on which the plaintiff relied was on
the fact that the Berkley Estate was ten or eleven miles from East
Gosford, whereas it was spoken of in the advertisement, as being
at a short distance from a flourishing town of East Gosford. Now
he (Mr. Windeyer) contended that this was a very different point
from the last; to state that a farm had particular timber upon it
when it had not was a misdescription of a specific fact, of which
all men could judge without dispute, but the statement at present
in question was of the most vague and indefinite description and
such as should only put parties upon enquiry. That the town of East
Gosford was flourishing at that time, was proved by the fact, that
it had continued since to flourish. That the land in it had risen
in value from two or three pounds to a hundred and sixty pounds
per acre, for it appeared from one of the plaintiff’s own witnesses
that Mr. Edye Manning had lately given to him £80 for half an acre.
With respect to the “short distance”, and the “immediate” neighbourhood,
which had been spoken of as deceiving purchasers, they were vague
relative terms, varying in meaning according to the situation of
the parties speaking of the matter spoken of. In London a man speaking
of his neighbour or of those living near to him would be supposed
to speak of those living in the sae or next street, while the same
party going to his country house at Blackheath, in speaking of the
respectable neighbours by which he was surrounded, would include
all within a circle of two or three miles. Further, in coming to
a still more thinly populated district, such as might be found in
America or in Australia, places and persons would be spoken of as
being in his near neighbourhood, who were ten or twelve miles off.
He would put it to them all who had lived in this conntry [sic],
whether, as they increased their distance from population they did
not find that the meaning of those term varied. Again, with respect
to the expression, within three hours sail of Sydney although taking
one part of the advertisement by itself it would appear as if the
estate were meant, yet taking other parts in connexion with it,
it was indisputable that East Gosford was meant. He believed that
in point of fact it could be proved that it was possible, under
favourable circumstances, to go by water to the Berkley estate within
three hours. But supposing it were not so, it was mere vague assertion,
manifestly depending upon wind and weather, and should only have
put a purchaser upon enquiring what was the specific distance. He
granted, that if that the estate had been represented to be a[n]y
given number of miles from Sydney, any variation from the truth
would be a misdescription that would vitiate the sale; because that
was the statement of the fact, not depending upon opinion of contingency
of any kind. The mile must be a mile under all circumstances; but
the three hours sail might be a day’s or a week’s sail. This was
the principle on which the case of the Duke of Norfolk against Worthy,
cited by the other side depended, for there the estate was described
as a mile from Hensham, when in point of fact it was two or three.
In short, the Jury would have to find that there was a warranty
of wind and weather, in order to make out the plaintiff’s case on
this head. He the more dwelt on this point, because it was the importance
that one of the Judges appeared to attach to it, which had occasioned
a verdict, in another case, in favour of Mr. Lyons to be set aside.
But if the Jury, or any one of them, should differ in opinion with
the Judge who laid stress upon that point, it would be a proof that
the former Jury was right, and that his (Mr. Windeyer’s) present
argument was sound. For the fact of such a difference of opinion
between the intelligent and impartial people, established the character
of vagueness and indefiniteness he now sought to affix to these
terms. What would those of the Jury who were merchants say if any
contract they had made a year ago, for the sale of a parcel of sugar,
should be set aside and they called upon to refund the purchase
money, not because it did not answer the warranty of being Mauritius
sugar, or because of a want of any other specific character they
gave it, but because they had happened to have said that it was
the best sugar within three hours sail, or that there was no such
sugar in the Colony, or had used other vague and indefinite terms
of commendation? The learned gentleman then cited Sugden on Vendors
and Purchasers of Estates and other authorities, principally decided
in Equity; and it was upon the equitable principle the Jury would
have to decide on this form of action, to show that where estates
were sold with defects of quality which were open to the view; a
purchaser who did not choose to inquire and inspect, should have
no relief; and also to show that where a description was vague and
indefinite a purchaser could not, and ought not to be supposed to
have been guided by it, and that the only effect of such description
should have been to put a purchaser upon inquiry. With respect to
the road to Wyong and Maitland through the Berkley estate, although
Mr. Goodall and Mr. Bryce Ross had not been able to see either it
or the marked trees, he should be able to show them, beyond the
shadow of a doubt, that such a road did exist and had existed for
many years, and that the description Mr. Lyons was said to have
given of it at the sale, as being better than the old road over
the Kangy Hangy hills, was perfectly correct: it certainly did not
run in so straight a line as the reserved road shown upon the plan,
but although it did twist in and out, there it was, and all that
was said in the advertisement was that the estate was on the road.
With respect to what had been called the puffing, there was no proof
that more than one person had bid for the owner more than one bid
for any one lot; and it appeared from a summary of the cases in
[S]ugden’s Vendors and Purchasers, that although it had been supposed
once or twice that such a course as had been taken by Mr. Peek could
not be supported, yet upon a review of all the cases it was clearly
settled that when the sale did not profess to be without reserve,
and this sale did not so profess, the seller might have a person
present to prevent his property being sacrificed. The learned gentleman
then read from Sugden to shew that where even the bid immediately
preceding that of the purchaser was fi[c]titious, the sale would
be supported; and that the only case in which a sale would be set
aside for puffing, unless the sale professed to be without reserve,
was where there was no real purchaser competing with the ultimate
bidder. Now in this case it did not appear that Mr. Peek had done
more than he was entitled to do protect his interests. All those
parts of the case upon which he had been hitherto addressing them
went to the defendant’s right to a verdict under the general issue.
And he should li[k]e to have their verdict under that issue, as
it would probably lead to a settlement of all the other cases. But
whatever becam[e] of that issue, the defendant had certainly entitled
himself to a verdict on the special plea[s]. Those pleas, in substance,
admitted that the plaintiff had been imposed upon; but then they
set forth that Mr. Lyons had no hand in the misdesc[r]iption complained
of; that he was merely employed as an auctioneer; that the plaintiff
had, by himself or agents accepted a conveyance of the property;
and that Mr. Lyons had settled with his principle. A great portion
of this part of the case had been proved by the plaintiff’s own
witnesses; and indeed the Solicitor-General had appeared to admit
that it must be proved; but had told them too that it was no defence
in law, and that it would be very hard on him (Dent) of it were.
He (Mr. Windeyer) however thought that His Honour would tell them
that it was a defence in law. And at all events, he would tell them
that if it were not, the plaintiff, instead of taking issue on it,
might have demurred, or hereafter in some other way take advantage
of it. It would be proved to them, that Mr. Dent had given instructions
to have a conveyance of the property drawn [f]or him, and that it
had been drawn and executed according[l]y. In considering both [this]
and the first part of the case it was open to them also to consider,
the point he had [a]d[dr]essed to the Court, viz., that Mr. Dent,
after having had notice of the facts and full means of [i]nformation
conveyed to him, or placed within his reach voluntarily said the
three bills produced to them. If they were sellers of p[ro]perty,
could they not, under such [circumstances], have expected Mr. Lyons
to ha[n]d them over the purchase money? They could no doubt have
been entitled to it; and that proves that Mr. Lyons could not be
subject also to have it demanded of him by the purchaser. If they
found for the plaintiff, it would in effect, amount to saying, that
no auctioneer should pay money over to his principal till after
the lapse of six years; for the statute of limitations alone would
be to him a sufficient protection. This was the common sense view
of the subject; and whatever might be said to them in reply, upon
the binding nature of the supposed warrantry contained in this vague
hand-bill, he should trust to their deciding on his view of the
subject.
Mr. Langley examined by
Mr. Broadhurst; and
gave evidence confirmatory of Mr. Goodall’s, as described in Mr.
Windeyer’s speech as to the quality of the land.
Mr. Battley a gentleman
residing on Tuggerah Beach lake, proved that the lake was navigable;
that a keeled boat was used upon it, drawing about a foot and a
half of water, and that he himself used a punt, for the purpose
of conveying timber across the lake from Berkley Estate. He also
spoke to the good quality of the soil and timber of the Estate.
Mr. Moore, also a settler
in the neighbourhood, gave somewhat similar evidence.
Mr. C. H. Chambers stated
that in consequence of instructions he received from both the plaintiffs
to obtain a conveyance of their purchase at the Berkley Estate sale
from Mr. Peek, he had prepared such conveyance, and got it executed,
by Mr. Peek. Mr. Peek signed sealed and delivered it absolutely
in his witness’s presence. The Deed was executed in July or August.
He had seen both Dent and Greenwell two or three times on the subject.
Cross-examined: he was
also an Attorney for Mr. Peek: and had prepared and served other
conveyances of parts of the Berkley estate. He was almost certain
that Dent had had other business in his (witness’s) office previously;
but he was certain subsequently; now he recollected Dent being there
about twenty times. It was not in virtue of his retainer from Peek,
or partly so, that he had drawn this conveyance. Mr. Peek had given
no particular instructions upon this matter, but had given him the
usual instructions, to get the business completed as quick as possible.
He recollected Dent telling him that he had made a purchase, and
requesting him to prepare a conveyance. He recol[l]ected that Dent
afterwards told him, that it was to be made out in his (Dent) and
Greenwell’s joint names. He saw Greenwell, who repeated these instructions,
and it was so made out accordingly. He did not recollect informing
them that the deed was executed; but Dent had, he believed, had
an account in which he was charged with it, and he believed Dent
was at the office three or four months back, and was then shewn
the account in their books. It was not his practice to communicate
to parties that their deeds were executed; and if not called for,
they frequently remained in the Attorney’s office for years. This
deed was not delivered by me on any other account than D[e]nt and
Greenwell’s. He understood that a part of the purchase money had
to be paid, and that he was not to deliver up the deed until he
had aut[h]ority from the auctioneer or from Mr. Peek. It was not
delivered to him as an escrow but absolutely and remained in his
possession for about a month, after which he heard it got from Peek’s
possession into that of Lyons.
Mr. John Want proved that
the deed had for some time been in the possession of Mr. Lyons,
or of himself as Mr. Lyons’s Attorney, and that it was so in conformity
with one of the conditions of sale, which allowed the auctioneer
to require security on the property. He also proved that this was
the usual mode of giving the security, in order to save the expense
of a mortgage deed.
Mr. Donnis[o]n examined
by Mr. Windeyer:
Said that he was a settler at Brisbane Water; that he knew the property
well; that the land was, in a great part, above the average quality;
that there was a narrow strip of bad land immediately adjoining
the lake; but that as you recede from the lake the land becomes
bushy and good; that the narrow strip of bad land was occasioned
by the sea occasionally being blown over it, and this it was that
killed the timber that was lying there dead, as represented on Mr.
Goodall’s map. He had crossed the entrance to the lake frequently
on horse-back, and had been sometimes obliged to swim his hor[s]e;
but for the most part the water was not deep enough to require that.
He should say that he average depth at the crossing place was at
low water, four feet; further out it was eight feet. He had frequently
swum cattle across there, and knew by that that the water was deeper.
He saw no breakers, and a small steamer might get into the entrance.
It was possible, under favourable circumstances to take boat at
the Berkley Estate, come out, embark on board a steamer, and reach
Sydney in three hours. He did not mean to say that he should like
to embark in the specu[l]ation, and indeed no steamers paid just
now; but he had no doubt that a steamer of sufficient power and
proper draught could be got to go the distance within the three
hours. The distance from Sydney to the Berkley Estate by water,
was but little more than that from Sydney to East Gosford. He had
never been entirely along the road through the Berkley estate to
Wyong, not having occasion to do so, but he had been on it in several
places when searching for cattle: the old road over the Kangy Hangy
hil[l]s was by no means a desirable one, and he had joined in an
application to have a government road marked, which there had been
lately, which would go between the old road and the Berkley estate,
almost touching the Berkley estate. With regard to the road from
East Gosford to the Berkley estate, it at present went through a
gate of his, which he had consented to its doing, and he did not
stop it, the gate having been there befor[e] the road went by that
particular spot: as to the gate at Mr. Bean’s, there never was a
gate there in Mr. Bean’s time, but Mr. Bean’s successor had, six
or eight months ago, applied to him (witness) for stuff to make
a gate, in order to prevent people going through his stock yard.
The road, originally made by drays, going from house to house. But
on becoming frequented, it became desirable to prevent the stock
yard being intruded upon, and this gate was put up; but so far from
turning people out of their way, it sent them the shorter way, which
was inside the fence. It made no going round about to get from the
Berkley estate to East Gosford but left the other road open. Mr.
Donnison had been on the property at least twenty times, looking
after his stray cattle.
Re-examined by Mr. Windeyer:
Understood the words in the bills, “when steamers ply between
East Gosford and Sydney,” to involve a contingency: thought it possible
that steamers might make the passage in three hours, and that they
might be able to enter the mouth of the lake. Could go in an hour
on horseback from the Berkley Estate to East Gosford: quite possible
to go from the estate to Sydney and back again within the day. East
Gosford in 1841 was a flourishing place; since the commencement
of the building of East Gosford, land had risen in value a hundred
per cent.
William Fletcher: Has known
the district of Brisbane Water this last fifteen years: there is
a bridle-road from East Gosford to Wyong. There is another over
the Kangy Hangy Range of Mountains. The road through the Berkley
Estate was nearest. Knew the lake, and has been on it in a vessel
of about four or five tons burthen: other settlers might have done
the same. Had left the entrance of the lake and reached Sydney by
water, in five hours. Has known the road through the Berkley Estate,
and driven cattle along it for fifteen years past.
Cross examined by the Solicitor-General:
Never saw a dray go from East Gosford to Wyong, through the Berkley
Estate. Never told any one that, during the seventeen years he had
known the lake the entrance had been stopped up, on an average,
for seven years. Mr. Underwood had blundered into a wrong mouth,
mistaking it for the mouth of the lake.
John Turner: Knows a road
to Wyong through the Berkley estate. It is a bridle road, and a
dray can go on it all the way. Knows of another road, not so good
a one, over the Kangy Hangy Hills. This latter was marked merely
for a Government road, but not yet finished. Has [?] examined the
soil of the property near the lake, and [t]hou[gh]t it good enough
to grow anyt[h]ing.
Cross-examined: Had never
told any person that the land was not worth sixpence an acre; but
had said that some of the land was not good.
David Wishart examined
by Mr. Broadhust :
Was master of the Thistle steamer, and could run from the
wharf to the Nobby’s in six hours and forty minutes. Could run from
Tuggerah Beach, to get abreast of Sydney Harbour, in three hours.
Henry Watson, examined
by Mr. Windeyer :
Knew the beach of the lake. The distance from Tuggerah Beach to
East Gosford one way is about seven miles, and by another about
ten or eleven miles. Has known the road through the Berkley Estate
to Wyong six or eight years.
Cross-examined by Mr. Manning
: Never measured the distance, but merely estimated it by having
frequently walked it.
Thomas Wilson, examined
by Mr. Broadhust :
Had seen the Berkley estate; went to examine it at Mr. Peek’s request;
saw lots 41, 42, 43, which seemed very fine land, being covered
with a thick brush; had had much experience both in colonial and
home soils; in witness’s opinion the land he had seen was equal
to land of the Illawarra; on the lots mentioned were a great many
forest oak tress; there were many tr[e]es fit for sawing purposes;
some were a hundred and fifty feet high; had seen black butt, blue,
and spotted gum trees in good number; a single tree of some of these
cut up would be worth seventy or eighty pounds; had seen a great
many trees cut up; the land was thickly timbered.
Cross-examined by the Solcitor-General
: Had gone to the estate in company with Mr. Peek, Mr. Horsburgh,
and others; could not say into how many planks or shingles a tree
could cut; although the expense of bringing wood to Sydney was great,
witness still thought that a tree cut up, including the expences
of carriage, would be worth the sum he had named.
Mr. Horsburgh, examined
by Mr. Windeyer :
Was a settler in the v[i]cinity of the property; the soil of the
land near the lake was a deep rich one; there was a marked bridle
road near the lake; on some parts of the estate was some of the
finest timber he had ever seen; he thought that ten trees to the
acre might be the average number fit for sawing purposes.
On cross-examination this
witness said, he had only specially examined such spots of the property
as his attention had been called to by Mr. Peek, but had gone over
and looked at other parts also.
Mr. Nott examined by Mr.
Broadhust : Was Clerk
of the Bench at Brisbane Water; had been concerned in growing bananas,
onions, and other vegetables at his own property; had made in one
year, by onions and corn, at the rate of one hundred and sixty pounds
per acre; formerly, he believed the Sydney market was almost exclusively
supplied with these vegetables from Brisbane Water; a light sandy
soil was peculiarly well fitted for the growth of such vegetables;
has two acres under bananas; from what he has already cropped of
these, he calculates he is making at the rate of seven hundred a
year per acre by the bananas; he had been from Sydney to Broadwater
just on this side of East-Gosford, by the Kangaroo steamer
in three hours and a half, and then they had a stoppage of about
twenty minutes; it would have taken them about ten minutes longer
to go on to Tuggerah Beach Lake.
Cross-examined by the Solicitor
General: His property was about fifteen miles from the Berkley
estate; there were no gardens within five miles of the estate, which
as yet was uncultivated.
Mr. Randolph, examined
by Mr. Broadhust :
Knew of a settlement of accounts between Mr. Peek and Mr. Lyons
respecting the Berkley estate; witness had been present at the settlement;
the first payment was made in a promissory note for £2,000 about
a fortnight after the sale; two other notes for the same amount
had been received afterwards and a fourth for a smaller amount,
which he (witness) considered to be for the balance; witness had
no doubt all the notes had been paid, and that they were paid as
the purchase money of the Berkley estate; knew this from the account.
Mr. Manning objected that as this account
was in writing it ought to be produced.
The Chief Justice allowed the examination
to go on, subject to the objection reserved.
Mr. Purkis, clerk to Mr.
Lyons, proved the payment of the above sums for the Berkley estate.
Cross-examined by the Solicitor
General : The witness produced an account, in which Peek
was debited with a certain sum paid by Lyons, on Peek’s account,
t[o] Unwin and Want; did not know whether this money was paid by
Lyons to Unwin and Want as the attornies of McIntosh, who would
not complete his purchase; had only been told by Lyons to retain
in his hands the price of M[c]Intosh’s purchase; Lyons had charged
no discount on the notes according to his (witness’s) interpretation
of discounting; witness considered discounting to be “the paying
a man less tan his due and charging him for the accommodation.”
Mr. Lemon, one of Messrs.
Chambers and Thurlow’s clerks, produced the book containing an account
of the conveyancing and other expenses incidental to Mr. D[e]nt’s
purchase. Mr. Dent objected to one item, but not the charges generally.
Had never heard Dent say that he intended to bring an action about
his purchase; but would not swear he had not said so.
This was the defendant’s
case.
The Solicitor-General replied upon the evidence,
and said that all his learned friend, Mr. Windeyer, had said, had
not got rid of this one insurmountable fact, that his (the Solicitor-General’s)
client had been deceived. Great efforts had been made and many witnesses
examined, in order to prove that the estate in question was within
three-hours’ sail of Sydney; and when it must be evident to any
reasonable mind, that this must be understood to mean a three hours’
passage under average circumstances. The defendant calls witnesses
to shew that, under extraordinarily favourable circumstances, the
trip has been once or twice made in about three hours and a-half;
and thus pretends to assume he has realized to purchasers what he
promised in his advertisements. A witness for the defendant too
could prove that once he had seen a boat on Tuggerah Beach Lake,
and this boat is immediately multiplied into magnificent fleets,
which are forthwith sent scudding about in the most lively manner,
over the face of the plan, exhibited to the unfortunate purchasers.
Then on comparing the evidence of the road “being intended to run
near that property to Maitland,” with the description in the advertisements,
that the estate was actually on the high road to Maitland,
to what conclusion could we come, but that the defendant had described
his land in a most incorrect manner! He (the Solicitor-General)
would not go into the question respecting the character of the soil,
because he did not consider that one of the most important point
for their consideration.
The learned gentleman then
commented at length on the evidence of the defendant, and then contended
that the sale, (independently of all considerations about evidence,)
was void on account of the puffing, which evidently, from the testimony
of Magner, had occurred at the auction. The learned gentleman concluded
by expressing his confidence that the jury would not allow their
judgments to be warped by the sophistical arguments of the other
side, nor refuse the plaintiff a verdict if, from an impartial review
of the whole evidence, they believed he had been deceived.
The majority of the jury
now expressing great fatigue, and at the instance of their foreman,
His Honor consented to adjourn the proceedings until eleven o’clock
this day.
The Court rose at about
half past six.
Dowling C.J., 11 November 1841
Source: Sydney Herald, 12 November 1841
Thursday, November 11.
DENT v. LYONS. – the summing up of the
CHIEF JUSTICE.
His Honor said,
that the case had now arrived at that stage, when the jury were
called upon for the exercise of their important functions. Divesting
their minds of the effects of Counsel’s eloquence, and after the
repose of the night, they then came well qualified to do justice
between the parties; and his Honor was sure gentlemen of station,
education, and character, such as composed the jury, would not suffer
themselves, in considering their verdict to give weight to any thing
but the great and important facts of the case.
It was a general rule of
law, that if money were paid under a mistake or misapprehension
of facts, it was recoverable at law, where it could be shewn that
any deception had been practised on the purchaser.
The case might be divided
into two branches. First, could the plaintiff recover under the
general issue; and secondly, assuming he could was the defendant
Lyons a party from whom he could recover. By the statute of frauds,
it was laid down that no contract for the sale of lands could be
sustained without a note in writing. The three points the plaintiff
must be called upon to prove were, the note in writing, the money
paid, and the consideration. The first point was proved by the entries
in the sale books, the second by the witnesses who had proved the
payment by the promissory note, and the third, being the one by
far the most important for their consideration, was the one which
by their verdict they must decide. The plaintiff sought to avoid
his contract, on the ground of the deception alleged. If the plaintiff
could establish his allegation, it was not because the defendant
was an auctioneer, that he was to be exempt from any process at
the shit of the plaintiff. The auctioneer had acted as a principal,
and if he suffered from the deception of his employer, he must recover
against him for any loss he sustained, by reason of that deception.
It appeared that the plaintiff
had purchased lots 41, 42, and 43, at the auction in question; and
he now sought to avoid his contracts, on the following grounds:
the alleged infirmity of the soil, the deficiency of the wood, the
absence of a road, and the alleged great distance of the estate
in question from the town of East Gosford. If the jury thought that
any misdescriptions in the defendant’s bills were proved by the
evidence to be material, then the plaintiff would be entitled
to recover under the general issue. The poetry and puffing of an
auctioneer’s advertisement, the jury must lay out of consideration,
and simply try whether the representations made, were materially
false.
His Honor had hitherto
applied himself to the facts on the part of the plaintiff. Now if
they thought that the bills of the defendant were only such as should
have put purchasers on their guard, they would find accordingly.
In respect to the charge of puffing, the facts proved were, that
there had been four bidders, who had bidden for Peek the vendor.
Now it was for the jury to consider, whether these men had attended
for the mere purpose of taking advantage of the eagerness of buyers,
and screwing up the price. Another important point, which had been
most powerfully and eloquently put to them by Mr. Windeyer, was,
for the jury to consider, whether the words “within three hours;
sail of Sydney,” were to be interpreted to mean a description amounting
to a warranty, that people might invariably pass from Sydney to
East Gosford in that time. He could not put the point better than
in the words of Mr. Windeyer himself, “did they consider this as
amounting to a warranty of wind and weather, or merely as fringe
and ornament, setting off an auctioneer’s advertisement?”
His Honor now approached
another part of the case. The defendant by his special plea had
traversed the facts stated in the plaintiff’s declaration, and if
the jury thought the defendant had supported his pleas by his evidence,
he would be entitled to their verdict.
The defendant’s plea was,
that he was employed by Mr. Peek to sell the property for him under
incorrect descriptions; that the plaintiff became the highest bidder
of the lots in question; and that subsequently the plaintiff accepted
a conveyance of the property, and settled for the purchase
money. The defendant by this plea had put two important points in
issue for the consideration of the jury. First, whether a conveyance
had been executed, and secondly, had a settlement taken place. The
evidence respecting the conveyance had been furnished by Mr. Chambers.
Now there was one point connected with this part of the subject,
his Honor must notice in terms at the very least of strong censure,
viz.: the frequency of professional men employing themselves as
the agents of two opposite parties at the same time; a practice
which was quite incompatible with that impartiality, or exclusive
devotion to a client, which should always be found in every professional
man. Now the deed in question, after execution had lain in the hands
of the attorney for a long space of time, the defendant’s plea asserted
the acceptance of the conveyance long before the commencement of
the suit; a clerk of the attorney at the same time showed, that,
the conveyance being prepared, the bill of costs had been sent in
and paid long after the commencement of the action. Now it was quite
reasonable to suppose that the defendant, although he complained
of being defrauded, might have consented to pay an innocent party
for the labour of making out a conveyance, without having any intention
of waiving the fraud of which he complained. It appeared that the
deed had passed from the hands of the attorney into those of Peek,
and it did not absolutely appear from the evidence whether the defendant
had ever seen the conveyance. It was therefore for the jury to consider
whether any conveyance had actually been made to the defendant,
when he was cognisant of the facts, as, if there had been, then
undoubtedly the defendant’s special plea would be supported, and
he would be entitled to a verdict.
In all human transactions the great principles were plain honest integrity between
man and man, principles to be expected and demanded of auctioneers
as well as from other people. And his Honor would lay it down before
the bench, that although he admitted that men should be vigilant
and look carefully after their own affairs, yet he would most unqualifiedly
and emphatically denounce and discourage the practice so common
in this country, of puffing off property, beyond what its merits
would warrant. Common honesty should correctly describe the thing
to be sold, and he would not allow settlers to take advantage of
credulity or ignorance by first deceiving, and then insulting the
deluded, by telling them they should not have given their belief
so easily.
The plaintiff appeared
from the evidence, to have placed implicit confidence in the descriptions
of the auctioneer, and if they (the jury) thought that the plaintiff
had been deceived thereby, he would not be on account of that confidence
deprived of a right to have their verdict.
His Honor concluded a most
effective summing up by saying, he had given the case his best consideration,
he had no doubt the jury would do the same, and if they should find
themselves compelled to see the facts in a different light from
that in which they appeared to him he trusted he had no such over-weening
sense of his own infallibility, as to have any desire, that they
should be guided by him any further than their own judgments should
approve.
The jury then retired,
and in about five minutes returned into Court, with a verdict for
the plaintiff. Damages £236 17s. 7d.
Source: Sydney Herald, 13 November 1841
FRIDAY, November 12.
ERRATA - In yesterday’s
report of his Honor’s summing up, for “infirmity of soil”, read
“inferiority of soil;” for “before the bench,” read “from the bench;”
for “settlers” read “sellers.”
Notes
|