This is an action for damages for alleged fraud in the sale of a cattle ranch. The plaintiff-purchasers appeal from a directed verdict for the defendant-vendor.
The transaction out of which this litigation arose began with an exchange of property. The purchasers, hereinafter referred to as Dorr, exсhanged certain equities which they owned in Oregon real property for an equity in the vendor’s ranch in California. The vendor, hereinafter referred to as Janssen, wаs to be paid the sum of $165,000 for the difference between the agreed value of Dorr’s interests in Oregon property and that of the California ranch.
*507 Dorr had no capital and could not obtain credit with which to operate the ranch. The periodic payments to Janssen at the beginning of the contract period were to be slightly under $1,000 per month, plus such additional sums as would fall due on notes for money advanced to Dorr by Janssen. The payments were scheduled to increase substantially in the future. It soon became obvious to all parties that Dorr could not make even the contract payments, much less finance the operations of the ranch. He made five payments, three of them with money borrowed from Janssen, during the eleven months he was in possession.
After falling six payments in arrears, Dorr re-conveyed all the real and personal property to Janssen. The reconveyance was supported by valuable consideration, although the equities previously transferred by Dorr to Janssen were all retained by Janssen. There is no evidence that Dorr requested their return. In this connection, it may be observed that there was, thеrefore, no mutual rescission and restoration of the
status quo
as those terms are ordinarily understood. See
Bridgmon et al v. Walker et al,
After reconveying the ranch to Janssen, Dorr filed his complaint in this action. He alleged that he had been induced to buy the ranch by false representations concerning the value of the ranch, its livestock-carrying capacity, the availability of local bank loans for operating capital, and the like. There was a failure *508 of proof on all the allеgations of fraud except, perhaps, the one concerning the carrying capacity of the ranch. Without rehearsing the details, it is sufficient to observe thаt there may have been a jury question on that score. Accordingly, we may assume, without deciding, that it might have been mandatory to submit the cause to the jury unless the trial cоurt correctly analyzed the legal effect of the transaction which resulted in the reconveyance of the ranch to Janssen. If the evidence proved facts from which it could be said, as a matter of law, that Dorr had lost his right to bring the action, then the trial court was free from error in any event.
Dorr challenges first the ruling of the trial court which permitted Janssen, after his evidence was in, to amend his answer to allege a waiver of the alleged fraud. The original answer had alleged that Dorr had voluntarily returned the property to Janssen to avoid the costs of litigation. The amended answer, by interlineation, alleged that Dorr had knowledge of and had wаived any fraud that may have been perpetrated. The amendment merely asserted a legal conclusion the pleader drew from evidence that had сome in without objection. While the amendment may have been redundant, it did not substantially change the theory of the defense. The voluntary return of the property, as a factual matter, had been alleged by the original answer. The legal effect of reconveyance had not been pleaded, but the circumstances surrounding the re-conveyance had been. Dorr had responded to these facts in his reply (by alleging new fraud). There was no surprise on any allegation of fact. In pеrmitting the amendment, the court did not abuse its discretion. See ORS 16.390;
Baker v. Brookmead Dairy, Inc. et al,
The trial court, on the urging of Janssen, charactеrized the reconveyance as a “mutual rescission,” which, as noted, it was not. There was no attempt to restore the status quo ante the contract. Whatever the agreement to reconvey is called, however, it was a new agreement. Dorr was in serious default and subject to immediate foreclosure. The evidence is uncontrаdicted that a part of the consideration for the voluntary reconveyance was an enforceable promise by Janssen that Dorr would have an additional ninety days in which to seek to sell the ranch on his own account, with Dorr having the obligation in such event to distribute the proceeds of sale to Janssen until Janssen was fully рaid, the overplus to go to Dorr. Additional consideration may be found in the cancellation and return to Dorr of notes representing his indebtedness to Janssen for advances in addition to the purchase-money for the ranch.
The conflict in the evidence concerned the question whether Dorr was induced to reconvey by an alleged representation on Janssen’s part that if Dorr refused to reconvey such refusal would cost Dorr another $14,000 in attorney fees. This was the new fraud allеged in the reply. Janssen denied giving Dorr such advice. Dorr swore that he reeonveyed solely in reliance upon that advice. The trial court correctly disregarded this testimony of Dorr because, whether
*510
or not a jury might have thought his version of the conversation was true, Dorr had no right, as a matter of law, to rely upon any such exрression of opinion by Janssen. See 23 Am Jur 781, Fraud
&
Deceit § 27; and
Ward v. Jenson,
In certain circumstances, an expression of opinion can give rise to a claim of fraud (see Ward v. Jenson, supra), 'but here thеre was no evidence that Janssen made the statement as an assertion of fact, nor, if made, that the statement was false, nor, if false, that Janssen knew or should hаve known it to be false. The evidence amounted to nothing more than the bald assertion by Dorr that the statement was made by Janssen. For all the record shows, Janssen’s opinion may, indeed, have been an accurate one. Both parties were experienced business men, dealing at arms’ length. Neither had any right to rely upon the other’s speculation concerning the cost of future litigation.
The trial court was fully warranted in concluding that no useful purpose could be served by submitting the cause to the jury. It is undisputed that the parties, after Dorr had knowledge of all the facts, made a new agreement, supported by consideration, respecting and materially changing the rights and duties arising out of the first transaction, which Dorr claimed he had been fraudulently induced to enter. By his participation in the new agreement, Dorr relinquished all right to damages arising out of the alleged misrepresentations.
Anderson v. Laws et al.,
“* * * In 24 Am. Jur., Fraud and Deceit, 42, § 214, it is said to be the general rule that ‘if one induced by misrepresentations or fraud tо deal or acquire, or to enter into a contract for the acquisition or use of property thereafter, with knowledge *511 of the deception, recеives from the party guilty of fraud some substantial concession or enters into a new contract in respect of the transaction, he thereby relinquishes all right to reсover or recoup damages because of the misrepresentations.’ So far as we have been able to ascertain, the validity of this principle has never been questioned by any court. It may be found enunciated and applied in numerous cases cited in the foregoing text and in the annotation in 106 A. L. R. 172 to the case of Bonded Adjustment Co. v. Anderson,186 Wash. 226 ,57 P. (2d) 1046 , 106 A. L. E. 166.”176 Or at 472 .
See, to like effect,
Conzelmann v. N. W. P. & D. Prod. Co.,
190
Or
332, 354-357,
Affirmed.