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Edgington v. Fitzmaurice

Chancery Division
29 Ch. 459 (1885)


Facts

Edgington (plaintiff) issued a loan of 1,500 pounds to a business controlled by Fitzmaurice (defendant). To obtain the loan, Fitzmaurice and the other directors and officers of the business misrepresented that they had acquired valuable property subject to a payment of 500 pounds twice yearly on a total mortgage of 21,500 pounds. Fitzmaurice stated the loan was needed to complete renovations to buildings on the property, and to purchase horses and vans to be used to obtain cheap fish from the coast. Edgington brought suit against Fitzmaurice for fraud on the grounds that the loan agreement made with him failed to include a second mortgage taken out against the property, that the entire balance of the first mortgage could come due at any time, and that the real reason for the loan of 1,500 pounds was to pay off pressing liabilities of the company and not to improve the buildings or buy horses or vans to develop the business of the company. The trial court held for Edgington, and Fitzmaurice appealed.

Rule of Law

Issue

Holding and Reasoning (Bowen, L.J.)

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