295 P. 873 | Cal. Ct. App. | 1931
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *597 This is an action instituted by respondents to recover damages alleged to have been sustained by them by reason of certain false and fraudulent representations made by appellant which induced the respondents to enter into a contract for the purchase of an eighty-four acre tract of land, seventy-two acres of which were planted to three year old almond trees and to make payments in compliance with the terms of the contract, which amounted to a total of $15,400.
It appears that during the years 1919 and 1920 three of the respondents resided in the state of Iowa and that the fourth was a resident of Omaha, Nebraska. During the latter part of the year 1919 the respondent H.B. Kramer had his attention directed to a certain booklet entitled: "A Life Income Plus California." This booklet was published by the appellant and described in the most glowing terms the financial profit to be derived from investments in land near San Luis Obispo, California, owned by appellant *598 to be planted to almond trees. The interest of respondents was so aroused by the contents of the booklet that three of them came to California for the purpose of investigating the proposition. During their stay in San Luis Obispo they met the president and certain agents of the appellant corporation and were by these persons shown a number of tracts of land owned by the corporation, some of which were planted to almond trees. Among the tracts thus exhibited was one of about eighty-four acres, of which seventy-two acres were planted to three year old almond trees. A contract was entered into on January 24, 1920, by the respondents for the purchase of this tract for the sum of $44,000. It is this contract which respondents in their complaint allege they were induced to execute because of the false and fraudulent representations made by appellant's officers and agents.
Upon the trial of the issues presented by the pleadings judgment was given in favor of the respondents in the amount of $28,600, which is the balance due on the purchase price of the land and the appellant was ordered to execute its deed to the property in favor of respondents without the payment of any further installments of money provided for in the contract of January 24, 1920, the said amount of $28,600 being credited against the balance of $28,600 due on the contract.
Certain findings of the trial court are attacked as not being supported by the evidence. In particular the court found that the respondents were defrauded by the following representations:
"(a) That said lands were of the finest almond land in the world;
"(b) That 72 acres of said lands were planted to almonds of varieties known as Nonpareil, Drakes and Texas, in the proportions as follows: Nonpareil two-thirds; Drakes one-sixth; Texas one-sixth;
"(c) That there was no danger of frost ever injuring almond trees planted or to be planted on said lands or the buds or fruit of said trees;
"(d) That said 72 acres so planted was a first-class almond orchard in every respect;
"(e) That defendant had acquired accurate knowledge regarding the character and value of said lands and from *599 this knowledge the said land was worth upwards of forty-four thousand dollars ($44,000.00)";
Which were by the court found to be false and statements of fact made with intention of deceiving and which did deceive respondents. [1] It is contended that the trial court erred in finding that the foregoing representations were statements of fact and that each and all of such representations are mere statements of opinion and hence not actionable. But if any one of the representations which the trial court found were made by appellant was a misrepresentation of a material fact upon which respondents had a right to rely and did rely, it will suffice to support respondents' cause of action (Harris v. Miller,
[3] It is further urged by appellant that the evidence shows that three of the respondents came from their homes in other states for the express purpose of investigating the proposal described in the published booklet, that they made inquiries, were shown properties both of appellant and other owners, sought for and obtained information — in short that they made a careful and thorough investigation and hence that they did not rely upon the representations made to *600 them by appellant, but relied entirely upon their own investigation. This contention may not prevail. So far as the investigation of the particular tract purchased by respondents is concerned, the evidence produced at the trial conclusively shows that the investigation of this tract was confined to one brief visit by two of the respondents accompanied by an agent of the appellant. Furthermore, it is apparent that throughout the period of investigation, respondents placed reliance upon the representations made to them by appellant's agents, particularly upon the representations of Mr. Nehrhood, referred to in the booklet as appellant's field manager, horticultural expert, and the foremost authority on almond culture in California.
[4] It is also urged by appellant that the damages awarded by the trial court are excessive and it is said that it is significant that the value of the land as found by the court is the exact amount which the plaintiffs had paid on their contract. It will suffice to say that an examination of the record discloses that while there is a marked conflict in the evidence respecting the value of the land on the date of the execution of the contract nevertheless there is ample evidence of a substantial character to support the finding of the court as to the value of the land. The court applied the proper measure of damages (Hines v. Brode,
[8] The further contention is made by appellant that respondents are estopped from maintaining this action by reason of their having elected the remedy of rescission in their former suit. This contention is entirely without merit. As counsel for appellant admits, the point has been decided adversely to his contention in the case of Campanella v. Campanella,
The judgment is affirmed.
Barnard, P.J., and Marks, J., concurred. *603