Dimond v. Peace River Land & Development Co.

182 Iowa 400
CourtSupreme Court of Iowa
DecidedJanuary 10, 1918
StatusPublished
Cited by15 cases

This text of 182 Iowa 400 (Dimond v. Peace River Land & Development Co.) 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
Dimond v. Peace River Land & Development Co., 182 Iowa 400 (iowa 1918).

Opinions

Gaynor, J.

— This action is brought to recover from [402]*402defendants the.amount of money paid on a written contract for the purchase of lands. Plaintiff claims to have rescinded on the ground of fraud.

It appears that the defendant the Peace River Land &' Development Company is a corporation organized in this state, and authorized to sell land in Florida; that the defendant E. O. Montgomery is its president; that, on the 27th day of February, 1911, the plaintiff, through her husband, made application to the land company in substantially the following language :

“I hereby contract to take a farm of forty acres of land in De Soto County, Florida, for which I agree to pay $25 per acre, at the rate of $40 a month until paid for. Enclosed within $40 as first payment on farm. I agree to make monthly payments of $40, hereafter on the land until paid for. Upon receipt of this please send me your legal acknowledgment and advise me which tract has been al-' lotted me.”

In response to which, defendants issued to plaintiff a bond for warranty deed, so far as material as follows:

“The Peace River Land & Development Company has this day allotted to the purchaser, Jennie Dimond, certain lands, (describing them) containing forty acres.” '

In said instrument, defendant acknowledged the payment of $40 on said land, and bound itself to deliver a Avarranty deed when the additional $960 was paid, payment to be made at the rate of $40 on the 27th day of each and every month thereafter.

The bond for deed contained the following stipulation:

“It is mutually agreed that the purchasers who buy without seeing the property shall be allowed 90 days from the date of this contract in which to make a personal investigation of his property; and if the purchaser upon such investigation does not'find the property as represented in our literature, he or she may then give notice in writing, [403]*403and the Peace River Land & Development Company shall then refund all payments made by the purchasers.”

Upon receipt of this bond, plaintiff continued to pay upon said bond according to its terms, until she paid the sum of $470.

The fraud upon which the plaintiff predicates her right to recover is found in certain maps, prints, catalogues, and other literature issued by the land company, in which certain representations and statements were made which she says proved to be false and untrue, and upon which she relied in making the purchase. The statements claimed to have been made in the literature on which fraud is charged, are to the effect that the land was generally rolling, with levelness, and compared favorably with Iowa and Illinois prairies; that the tract was traversed by good roads and telephoned; had excellent drainage; the soil was sandy loam, with clay subsoil;' was fertile to a degree almost beyond description; was increasing in value rapidly ; was suitable for the growth of orange and grapefruit, and, if planted to orange and grapefruit, would be worth $1,000 an acre in four or five years; that the land was the choicest in De Soto County, and the choicest in the state of Florida; that homeseekers were flocking to that section to settle on the land; that all kinds of vegetables, and several crops each year, could be grown on the land with good returns. The land company published a plat, on which orange and grapefruit groves were shown, and on which was printed as follows:

“Note the improved orange, and grapefruit groves adjoining our land. Some of the groves are producing $1,000! per year annually. We are selling identically the same kind of soil these groves are growing upon. All kinds of choice vegetables may be grown in abundance on the same land.”

Plaintiff alleges that, in order to have its representa[404]*404tions believed, and relied and acted upon, the defendant distributed a picture, showing a high and rolling piece of land, on which was printed, “The above picture shows the land we sell.”

The contention of the plaintiff is that the representations were false; that they were known to be false at the time the literature was issued by the defendants; that the defendants knew the representations were false, and made them for the purpose of having plaintiff rely thereon; that they were made as of the personal knowledge of the defendants; that she believed they were true, and acted and relied upon them; that the land allotted to her was not in any sense of the character described; that, after discovering the fraud and deceit by which she was induced to enter into the contract, she gave notice of rescission, and demanded the return of her payments, which was refused.

The literature in question was introduced in evidence, and contains the statements alleged to have been made therein. There is evidence that these allegations were not true; that the land allotted to the plaintiff was low, covered with tangle, live .oak trees and gum; is from two to five feet lower than the land north of it; that the whole country is flat and low; that the piece allotted to plaintiff is a low, flat swale, that acts as a creek or overflow for the country lying to the east and north, — seems to bé just a piece of low ground; that the east 20 has a pond on it that will cover between 60 and 75 per cent of the ground; that at times there was water on it two feet deep, covering half of it; that there is not to exceed two or three acres of the Dimond ground upon which there is no water; that the west half is just boggy, — “you jump from bog to bog.”

A witness for the plaintiff, who examined the land in February, 1912, was asked this question:

[405]*405“Are you able, from an examination of the land, to tell whether or not it is suitable for the growing of citrus fruits? A. I am. Q. How do you go about to examine Florida land to tell what it is? A. The best way is to take a shovel and to dig a hole, and if there is a sand soil, and no water or hard-pan, and the proper drainage, you have no trouble in growing oranges on it. I dug between 50 and 200 holes on the property. I think I dug some holes on the Dimond land. . I found little top soil and white sand; in some of the holes, I found water.”

He said that it was not possible to grow citrus fruit upon the Dimond land except on two or three acres.

“If you dig a hole, you find no soil, — nothing but sand, —no subsoil. All the land owned by the company was not of the same quality. They owned land upon which citrus fruit can be raised. I didn’t find ,any of defendants’ property which compared favorably with Iowa and Illinois as to be rolling or in soil. The land was flat and level, about 90 per cent flat and low. The Dimond land had no drainage. The outlet would be between three and four miles up Peace Creek. I found that the water had been higher than it was when I was there. I could see trash and refuse on the high ground. At the time I was there, there was trash on the trunks of trees as high as a man’s head. The trash would indicate that the water had been two to four feet high. The east half of the Dimond land could be cleared for little expense, and the west half would cost from $100 to $110 an acre. I didn’t find any clay soil or sandy loam on the Dimond land. I should say vegetables could not be raised on the Dimond land. I didn’t see any vegetables on any other land around there. I saw the Dimond land twice, in 1912 and 1913.

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Bluebook (online)
182 Iowa 400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dimond-v-peace-river-land-development-co-iowa-1918.