Cavallo v. Gatti

392 S.W.2d 843, 54 Tenn. App. 529, 1965 Tenn. App. LEXIS 279
CourtCourt of Appeals of Tennessee
DecidedMarch 11, 1965
StatusPublished
Cited by2 cases

This text of 392 S.W.2d 843 (Cavallo v. Gatti) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cavallo v. Gatti, 392 S.W.2d 843, 54 Tenn. App. 529, 1965 Tenn. App. LEXIS 279 (Tenn. Ct. App. 1965).

Opinion

' AVERY, P.J. (W.S.).

This cause comes from the Chancery Court of Shelby County, Division One, Chancellor Hoffman presiding. It involves the sale of a [531]*531miniature golf course, the purchaser alleging in the original bill that on account of misrepresentation by the original defendants, and the failure of the title to a portion of the ground upon which the miniature golf course was located, complainant was entitled to a rescission of the contract and to recover the cash payment made in the amount of $4,000, and have cancelled the balance of the consideration evidenced by promissory note in the amount of $4,000; that he have interest on the amount of the cash payment from the date of its payment to the date of the cancellation of the deferred payment and decree of the Court in this cause, together with damages for the breach of warranty in said contract.

In the'contract which is styled “BILL OF SALE”, the granting clause is as follows:

“KNOW ALL MEN BY THESE PRESENTS, That we, Ricco Gatti, Jr. and Frank E. Buran, of Memphis, Shelby County, Tennessee, in consideration of Four Thousand and No/100 ($4,000.00) Dollars and other good and valuable consideration, the receipt of which is hereby acknowledged, do hereby grant, sell, transfer and deliver unto Joseph P. Cavallo the business known as Fran-Ric’s Miniature Golf Course located at 3463 Larmar Avenue, Shelby County, Tennessee, including the following property, to-wit:
“All of sellers interest in and to the lease on said premises.
Use of the name Fran-Ric’s for a period of three (3) years.
1 — Frame building housing miniature golf office and concession stand.
[532]*5321 — -Wood frame and corrugated metal storage building. ’ ’
(Then 24 items including all of the light poles, fixtures and items of personal property usually found at such entertainment spot, are described.)
The habendum and warranty are as follows:
“To Have and to Hold the said goods and chattels unto the said Joseph P. Cavallo, his executors, administrators and assigns, to his own use and benefit forever. And we, Bicco G-atti, Jr. and Prank E. Buran, do avow that we are the true and lawful owners of said business, goods and chattels; that we have full power, good right and lawful authority to dispose of said business, goods and chattels in the manner aforesaid; and that we will warrant and defend the same against the lawful claims and demands of all persons whomsoever.
“IN WITNESS WHEREOF, we have hereunto set our hands this 16th day of May, 1963.
“/s/ Ricco Gatti, Jr.
Frank E. Buran.”

For the remaining $4,000 complainant grantee, Joseph P. Cavallo, executed his note with interest at 6%, principal and interest payable in 24 consecutive months, the first payment to said defendants of $177.29 due August 1, 1963.

Complainant executed a Chattel Trust Deed conveying every item purchased to Jess D. Ewing as Trustee, securing the payment of said note, containing the usual escalator maturity clause, maturing at the option of the holder of said indebtedness, the entire balance, “without notice to the undersigned”, and authority of foreclosure. [533]*533In this trust instrument there are a great many provisions which prevented the maker of the note from selling to anybody the property contained in the bill of sale and trust deed, without the written permission of the holder of the note, and further on demand of the holder of the secured debt, the maker of the note agreed to provide any additional collateral security that might be demanded, and maturing the entire balance for failure to comply with provisions stipulated in said trust instrument authorizing foreclosure as in default of any payment.

The original bill charged complainant was overreached by many false representations, both expressed and implied, describing them; that the owner did not have the sole and exclusive right to the use of a substantial portion of the land and premises on which the equipment and facilities were located, same being on lands of others; that the income to be derived from the operation of this miniature golf course were:

“not even remotely as profitable as the defendants held it out and represented that it was; that in truth, they knew and withheld from the complainant the fact that said business was not even profitable, and could not be profitably or successfully operated.”

The bill was filed August 6, 1963. Defendants obtained an extension of time to answer to September 1, 1963.

The answer was filed on September 3, 1963. In it defendants denied all the material allegations of misrepresentations contained in the original bill, and said they had no interest in the involved land covered in the leasehold but a leasehold interest and that this was quit-claimed to the complainant by an assignment. They deny that defendants had any knowledge that any part of [534]*534the land on which, the golf course was located was owned by any person other than their original lessor; deny they have practiced any fraud of any kind in the procuring of the $4,000 in cash and the $4,000 note and chattel trust and denied that complainant has any right to have a rescission of the sale, cancellation of the note or other relief.

In the answer it is admitted that complainant on July 29, 1963, wrote defendant Gatti Jr. that he wanted to rescind the transaction, which letter is marked Exhibit 3 to the complainant and admit defendants refused to rescind. The answer admits the execution of the “bill of sale”, the note and deed of trust. They exhibit same with their answer, and aver complainant failed to properly operate the business; had defaulted under the terms of his purchase agreement; failed to make payment and they had declared the balance of complainant’s debt due, demanded the trustee to foreclose the deed of trust, which was done, and sale had on the 27th day of August 1963, at 1:00 P.M. for the balance owing of $4,000.

In this answer the defendants demanded a jury to try the issues of fact.

The cause was first heard before the Court and a jury on or about November 14, 1963, when two Issues were submitted to the jury as follows:

“I
“Did defendants represent to and lead complainant to believe that he could make enough profit from the operation of the miniature golf course in question, during each season, to pay operating expenses and to pay his monthly notes of $177.29 ?
“Answer ‘Yes’ or ‘No’: YES.
[535]*535“II
“Did tlie defendants know at any time prior to the sale of the golf course that any portion of the physical layout of the golf course encroached on the land of an adjacent owner?
“Answer ‘Yes’ or ‘No’: NO”

After the jury had reported the defendants moved the Court for a decree in their favor in which they state that Issue No. 1 was not a jury question and as a matter of law should not have been submitted to the jury and that the defendants were entitled to a verdict on the whole proof.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lorentz v. Deardan
834 S.W.2d 316 (Court of Appeals of Tennessee, 1992)
Lloyd v. Turner
602 S.W.2d 503 (Court of Appeals of Tennessee, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
392 S.W.2d 843, 54 Tenn. App. 529, 1965 Tenn. App. LEXIS 279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cavallo-v-gatti-tennctapp-1965.