Otto Bloomquist, Respondent v. John Farson, Appellants; Wallace L. Snow, Respondent, v. John Farson…

Summary

The New York Court of Appeals affirmed the Appellate Division's judgment, modifying it to correct a clerical error, and upheld rescission of the bond exchanges. The court held that equitable rescission is available for transactions induced by material misrepresentations even without proof of fraud, that alleged fraud does not defeat the action, that an adequate legal remedy cannot be raised as a defense on a motion to dismiss, and that cashing interest coupons does not constitute ratification.