TORTS-LIABILITY FOR MISREPRESENTATION MADE WITH HONEST BELIEF IN ITS TRUTH

Defendant, a liquor broker, was authorized to make contracts for a liquor wholesaler. He represented to plaintiff that the wholesaler had sufficient liquor immediately available to supply plaintiff with an unlimited amount, and that he had investigated the company and it was financially all right. Defendant honestly believed his representations to be true. Relying on the representations, plaintiff placed a large order with the wholesaler and paid a deposit which he lost when the wholesaler went bankrupt shortly thereafter. Plaintiff sued for damages. On appeal from judgment for plaintiff, held, affirmed. Petition for rehearing denied. Stein v. Treger, (D. C. Cir. 1950) 182 F. (2d) 696