Bronson v. Lynch

181 Iowa 654
CourtSupreme Court of Iowa
DecidedNovember 17, 1917
StatusPublished
Cited by1 cases

This text of 181 Iowa 654 (Bronson v. Lynch) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronson v. Lynch, 181 Iowa 654 (iowa 1917).

Opinion

Preston, J.

On October 1, 1913, the parties entered into a written contract, whereby plaintiff agreed to sell to defendants a fractional 200 acres of land in Kossuth County, Iowa, for $28,200, $4,000 of which was to be paid by the conveyance by defendants to plaintiff of a quarter section of land in Michigan. Plaintiff alleges that defendants made certain false representations in regard to the Michigan land, which were relied upon by him and induced the sale; the lands were conveyed pursuant to the contract; defendants took possession of the land sold them by plaintiff on the [655]*655date of the contract, and have ever since been in possession; plaintiff discovered the falsity of the statements in September, 1914, and elected to rescind; since obtaining title, defendants have mortgaged the Kossuth County land for $3,000;. by reason of defendant’s fraud, plaintiff was induced to accept the Michigan land as payment of $4,000 of the purchase money; that the Michigan land is worthless, and therefore plaintiff has not received payment for the land sold by him, to the extent of $4,000. An accounting is asked, and cancellation of the contract, reconveyance to the plaintiff, and, by way of alternative relief, in the event the court is not able to cancel the entire contract, that the conveyance of the Michigan land be cancelled, and plaintiff have decree for $4,000 and interest.

Defendants deny the fraud, and say that plaintiff agreed to accept the Michigan land at an agreed valuation of $4,000, and as an inducement to defendants to purchase the Kossuth County land at the agreed price of $150 per acre, which was more than it was then worth, and say that, by mistake, the parties failed to express such agreement in the written contract, and ask a reformation; allege that there was a shortage in the Kossuth County land, and that plaintiff is indebted to defendants therefor; that defendants paid interest on a mortgage which plaintiff was to pay, and represented he had paid. Defendants ask that the contract be reformed to show that the Michigan land was taken as part payment, and in respect to the agreement to pay interest and for shortage. The answer.further alleged that defendants took possession of the Kossuth County land and made improvements, made payments upon the mortgage and the taxes, and that, by reason of the improvements, the land has been enhanced in value, and, further:

“If this court should decree said land should be re-conveyed to the plaintiff, these defendants are entitled to [656]*656be made whole by the payment of all sums which they have paid upon said premises for all purposes, and for the full amount which they have enhanced the value of said premises.”

Defendants further claimed that plaintiff made no claim to rescind the contract during the time defendants were making improvements,- and that thereby plaintiff is estopped from claiming the right to rescind and to receive back the land. The evidence shows that plaintiff did not discover the fraud for nearly a year, and that defendants were making some of the improvements during this time, and others while this action was pending. Plaintiff admits in his reply that the purchase price agreed upon for his land was $150 per acre, and that there was a shortage in the acreage.

The trial court found that the defendants were guilty of the fraud alleged, and that plaintiff was entitled to the relief demanded, but that rescission was impracticable, because defendants had made improvements, the value and extent of which were uncertain and impossible of satisfactory ascertainment, and, further, that it was impracticable to ascertain the rental value of the land with which defendants ought to bé charged; that, after the beginning of the action, defendants remained in possession, planted crops, which, at the time of the decree (in July, 1915), were growing, and the value whereof was not capable of ascertainment; that it would be impracticable at that season to remove defendants from the premises, or for plaintiff to go upon the land or find tenants; that it was inadvisable to create a relationship of landlord and tenant between the parties, or give the defendants the right to occupy the premises as tenants; that the decree ought to terminate all relations between the parties growing out of the transaction, and, because of the impracticability of rescission, rescission ought to be denied, and compensation awarded to plaintiff. The court found and decreed that the actual value [657]*657of the Michigan land was $160, and the compensation to which plaintiff was entitled was $3,840 and interest; that defendants were entitled to an abatement of the purchase price of the Kossuth County land for the deficiency, amounting to $432, and interest, leaving the amount plaintiff was entitled to recover, $3,782.32, with interest. The decree further provided that the defendants should have the option to pay the plaintiff the value of .the Michigan land, $160, and the amount of taxes paid by plaintiff, and that, on paying said sums within six months, defendants should be entitled to a reconveyance of the Michigan land.

The principal fact question is as to the representations, and the record is a large one. Appellant concedes that there is a serious conflict in the evidence respecting the more important questions of fact. Five witnesses testified for plaintiff: the plaintiff himself and three sons, and another witness, apparently disinterested, except that defendants say he was unfriendly to one of the defendants. The evidence for defendants consists of that of the three defendants themselves. Counsel for defendants say that their witnesses should be believed; that plaintiff has trained himself and his boys into the execution of a maze of untruths. On the other hand, counsel for plaintiff urge that .their witnesses should be believed, and that defendants were clearly guilty of fraud, and that one of them as a witness practically admitted all of plaintiff’s claims. Our experience is that counsel on either side occasionally take a similar view of the evidence of their adversary’s witnesses.

We shall not go into the evidence. It is enough to say that, after a careful reading of it, we are satisfied with the conclusions of the trial court, not only as to the false representations, but as to the value of the land, and the other issues; that plaintiff’s land was at that time worth $150 per acre, and that the Michigan land was worth not to exceed the amount found by the trial court. The evidence as to [658]*658the value of plaintiff’s land ranges from $125 an acre, given by defendants’ witnesses, to $175, by plaintiff’s. Plaintiff has a larger number of witnesses on value, and they appear to be of equal credibility with those testifying for defendants. There seems to be no serious claim that the Michigan land was worth more than the amount found by the trial court.

Vendor and PURCHASER I rescission : fraud: laches: effect. 1. It is 'contended by appellants that, because of the plaintiff’s delay in investigating the Michigan land for nearly a year, with knowledge that defendants were expending money in improving the land, plaintiff was guilty of such laches as to defeat his right to recover. But the Michigan land was in a distant state, and there are other circumstances in the record showing that plaintiff did not discover the fraud until shortly before the action was brought, and that he was excusable for the delay.

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Bluebook (online)
181 Iowa 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronson-v-lynch-iowa-1917.