Majority
Headnote
1. Action fob Rent—Defense of Subbender—Admission of Continued Possession—Effect.This is an action for rent. The complaint sets forth the usual allegations, and avers that the defendants “entered
The admission of continued possession also renders the defense of fraud unavailable. It was held in Barr v. N. Y., L. E. & W. R. R. Co., 125 N. Y. 263 , 26 N. E. 145 , that where the party, after knowledge of the fraud and an opportunity to rescind, still retains the possession and use of the property without any offer to return the same, the fraud is waived, and the contract becomes valid by acquiescence. That was an action for rent wherein the defendants sought to avail themselves of the invalidity of the lease because of its fraudulent inception. Judge Gray says, at page 271, 125 N. Y., and page 147, 26 N. B.: “There is something repugnant to our sense of justice, and a seeming subversion of ideas respecting property rights, in the position that property máy be retained and enjoyed, and payment of the stipulated rental therefor refused by its holder, on the plea of fraudulent practices, or because of the immoral conduct involved in the making of the contract by which the property was transferred and the obligation to pay imposed.” And in Lynch v. Sauer, 16 Misc. Rep. 1 , 38 N. Y. Supp. 666 , this court held that fraud is not available as a defense to an action for rent after failing to repudiate the agreement" upon learning of the fraud, as such failure is a complete ratification of the contract. The demurrer to the separate defenses must therefore be sustained. Judgment affirmed, with costs, with leave, upon payment thereof within 10 days, to serve an amended answer.
Judgment affirmed, with costs, with leave, upon payment thereof within 10 days, to serve amended answer. All concur.
Cases cited
- Dunham v. Cudlipp 94 N. Y. 129 p. 320
- Fleischmann v. Stern 90 N. Y. 110 p. 320
- Conselyea v. Swift 103 N. Y. 604 p. 320
- Barr v. New York, Lake Erie & Western Railroad 125 N. Y. 263 p. 320
- Lynch v. Sauer 16 Misc. Rep. 1 at 38 p. 320