Engle v. Farrell

171 P.2d 588, 75 Cal. App. 2d 612, 1946 Cal. App. LEXIS 1284
California Court of Appeal·Decided August 1, 1946·No. Civ. 15237·Published·Cited by 12 cases

Opinion

DORAN, J.

The respondent instituted the present action for money had and received, to recover the full purchase price paid to the appellants for certain alleged oil lands located in Kings County, California, said action being based upon rescission for fraud. After trial before a jury a general verdict was returned against Edward C. Farrell and Margaret Farrell, husband and wife, in the sum of $36,797.04, and judgment entered thereon. Thereafter the trial court denied the defendants’ motion for a new trial upon the condition that plaintiff deposit with the county clerk a deed to the lands in question with instructions to deliver such deed to the defendants upon full payment of the judgment, and that plaintiff file a stipulation consenting that the judgment be modified accordingly. Such stipulation, consent and deed were accordingly filed by the plaintiff.

The complaint charged the defendants Edward C. Farrell and Margaret Farrell with false representations to the effect that Edward C. Farrell was the owner of the land in question; that the property was good oil land which plaintiff would be able to quickly resell at a greatly increased price; that the defendants misrepresented the location of the premises, the geological structure thereof, and other facts connected therewith. The complaint further alleges that Edward 0. Farrell was represented to be “a, large scale oil operator” having superior knowledge; that plaintiff, a woman 65 years of age *614 and without business experience was induced to rely on such superior knowledge and to buy three separate parcels of alleged oil land. The first tract of 80 acres was purchased about June 20, 1938; a second 80-acre parcel being purchased shortly thereafter upon representations that the second purchase was necessary to secure ingress to and the sale of the first parcel. Thereafter plaintiff was induced to purchase an additional 160 acres of alleged “good oil land.” Plaintiff alleges that the fraud was not discovered until in January, 1943, and that notice of rescission was served on or about May 21, 1943.

The record contains evidence to the effect that the property sold was not located in the Middle Dome of Kettleman Hills as represented but was in Kettleman Plains Syeline; that Edward G. Farrell was not previously the owner of the pro'perty sold to plaintiff at $110-131 per acre, but that after negotiating with plaintiff Farrell bought the land for $21-25 per acre, which fact was not communicated to the plaintiff. The deeds delivered to plaintiff were executed by Edward G. Farrell and wife Margaret Farrell, were recorded by Edward C. Farrell, and bore revenue stamps cancelled by Farrell. In the case of the two 80-acre parcels covered by one deed, these revenue stamps reflected a consideration of but $4,000, whereas plaintiff actually paid $19,230.21. As to the 160-acre parcel for which plaintiff paid $17,566.83, the can-celled revenue stamps indicated a consideration of only $9,000. Plaintiff was not furnished with policies of title insurance, and it appeared that all of the property was subject to a grazing lease about which plaintiff was not informed. Plaintiff testified that Farrell said “I would make a great deal of money. On one occasion I remember, he said I would need a suitcase to carry it in; and another instance I remember he said I would need a shovel ... to shovel the money. ’ ’ In reference to appellants’ assertion that representations to the effect that the land was “good oil property” were statements of opinion based on geologists’ reports and hence not actionable, the record contains evidence from which a jury might conclude that Farrell did not honestly entertain such belief, and that such reports contained nothing which would justify an experienced oil man such as Farrell professed to be (20 years in the oil business in Southern California), in entertaining and expressing such a belief.

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Engle v. Farrell, 171 P.2d 588, 75 Cal. App. 2d 612, 1946 Cal. App. LEXIS 1284 (Cal. Ct. App. 1946).

171 P.2d 588 (Engle v. Farrell) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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