Korotki v. Springer

Henderson, J., delivered the opinion of the Court. The appellees brought a suit in equity to rescind the sale of a grocery store which they purchased from the appellants. A decree dismissing the bill was appealed to this Court and reversed. Springer v. Korotki, 215 Md. 310 .

The bill for rescission relied upon an alleged misrepresentation by Korotki as to the cash volume of sales prior to August 9, 1955, and breach of a warranty by Korotki that, during a test week ¹⁹³ beginning on that date, sales made in the regular, normal and ordinary course of business would not be less than $650. The agreement contained an option to terminate for breach of the warranty. We found from a review of all the evidence that sales during the test week were abnormally high, and could hardly have reached the figure mentioned in the ordinary course of business. We also gave credence to the evidence that Korotki had puffed the sales, and concluded that the chancellor was clearly wrong.

We reversed the decree and remanded the case “for further proceedings not inconsistent with this opinion.” Upon remand, the chancellor proceeded to ascertain the amount that should be refunded upon rescission, to put the parties in statu quo. He entered a decree rescinding the sale, ordering that the respondents pay the sum of $4,150 to the complainants and that the complainants assign their lease of the premises and be relieved of further liability thereunder. The appeal is from that decree, but no question is raised as to it. The sole contention is that the chancellor erred in declining, prior to the entry of the decree, to hear evidence proffered by the appellants, and alleged to have been newly discovered.

The general effect of the proffer was to disprove the facts found by this Court on the previous appeal, to rebut and discredit the testimony of Springer and his witness, Joyner, and to show that Joyner had committed perjury and that Springer had attempted to suborn the perjury of another person, who did not testify. The appellants contend that the evidence proffered showed that the appellees had perpetrated a fraud, or attempted fraud, upon the court, in violation of the maxim of clean hands, and that the court was bound to hear it. We find it unnecessary to review the proffer in detail, or to express any opinion as to whether the proffered evidence would, under any circumstances, require or justify a reversal of the decree appealed from. But see Blondell v. Orem, 201