Fisher v. Idaho Mining & Milling, Inc.

357 P.2d 95, 83 Idaho 20, 1960 Ida. LEXIS 253
CourtIdaho Supreme Court
DecidedNovember 22, 1960
DocketNo. 8902
StatusPublished

This text of 357 P.2d 95 (Fisher v. Idaho Mining & Milling, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fisher v. Idaho Mining & Milling, Inc., 357 P.2d 95, 83 Idaho 20, 1960 Ida. LEXIS 253 (Idaho 1960).

Opinion

TAYLOR, Chief Justice.

Plaintiff (respondent) a former school teacher, had purchased a farm near Carlton, Oregon, about three years prior to the transaction here involved. He had employed loggers and logged off about 250,000 board feet of timber from the farm. Other than that he had never bought or sold timber. During September, 1958, he observed an advertisement in several issues of the [22]*22Oregonian, published in Portland. One such ad, under date of September 14, 1958, in material part is as follows:

“Mining firm clearing ground to dredge has over 10 million feet 8" BHD to 30" BHD Lodgepole Pine and Spruce. Will sell for $15,000 cash. No slash charge or disposal. Located 40 miles south of Grangeville, Idaho. * * * Idaho Mining & Milling, Inc., Box 502, Lewiston, Idaho, Phone SH 3-3398.”

September 29, 1958, plaintiff in company with J. W. Parks and Charles E. Jewell went to Grangeville to investigate the timber offer. They were met there by Marion Jungert, a director and secretary-treasurer of the defendant (appellant) corporation. Marion Jungert took the three out to the Florence mining district, where the timber was located. The four spent some three to five hours walking over a portion of defendant’s mining claims, viewing the timber thereon. Marion told plaintiff the defendant had 10 million board feet of merchantable timber upon the property 8 to 30 inches breast-high diameter, which the company would sell for $15,000 in cash, or with a sizeable down payment, would sell it at $2 per thousand upon the basis of a cruise to be made at the buyer’s expense. The party then returned to Grangeville where plaintiff inquired at sawmills there as to the price of “studs”. After a further conversation with Marion Jungert, the group went to Lewiston to the home of Philip Jungert, president of the defendant corporation, where negotiations were continued between the two Jungerts and the plaintiff. Plaintiff agreed to buy the timber for $15,000 — $4,000 down, $2,000 February 1, 1959, and $9,000 December 1, 1959, with interest. A “Timber Sales Agreement” was drawn by defendant’s attorney,, for the sale by defendant to plaintiff of “all of the merchantable timber” upon the land particularly described in attached exhibits-A and B. Exhibit A is a copy of a description of the land and exhibit B is a copy of a plat, both of which had been attached to-the Forest Service “Timber Sale Contract.” Plaintiff expressed a desire to have the contract checked by an attorney before signing, but, being assured it was a standard timber sales contract, and having been advised by both the Jungerts that other parties were seeking to buy the timber— some of whom were on their way to Lewis-ton at the time for that purpose — the plaintiff executed the agreement and made the down payment.

The Jungerts advised plaintiff that defendant had purchased the timber from the-U. S. Department of Agriculture, Forest Service, and testified that at the meeting at Lewiston they exhibited to the plaintiff, and the plaintiff examined, the contract of sale executed by the Forest Service and defendant. Plaintiff denied that the [23]*23Jungerts showed him the Forest Service contract and testified that the first time he saw it was at the Forest Service office in Orangeville about the 1st of December, 1958.

After the execution of the contract, plaintiff sent a tractor and crew into the area and did some work on the access road. He also hauled in parts of a sawmill, some of which were subsequently stored at Grangeville. Some time during these operations plaintiff was advised by certain individuals that they owned mining locations in the Florence basin, upon which some of the timber stood, and that they would not permit him to log the timber thereon. It was then plaintiff went to the Forest Service office and examined defendant’s purchase contract. That contract, dated August 25, 1958, provides for the sale by the U.S.D.A. to the defendant of “All timber on dredge ground (streambed that can be reached by a bucket elevator type dredge, such ground known as alluvial deposits) and all timber within 75' of the dredge ground (75' on either bank) on the following claims: * * Seven mining claims are described and also approximately 10 acres upon a proposed landing strip.

The Forest Service contract provides for the sale of an estimated 947,000 board feet, “more or less,” of saw logs at $1 per thousand, stumpage, for a total consideration of $947. The recited consideration is subject to .revision upward or downward as may be determined by actual scale. The contract further provides:

“ * * * All trees are merchantable which contain 1 or more merchantable logs * * *.
“All logs are merchantable which are not less than 8 feet long, at least 8 inches in diameter inside bark at the small end and contain a net of 33Yz percent of their gross scale; provided that no log scaling less than 20 bd. ft. shall be considered merchantable; *

The defendant owned no timber except that which it had purchased by means of this contract with the Forest Service.

Plaintiff commenced this action January 5, 1959, for rescission of the contract and for recovery of the down payment and out-of-pocket expenses incurred in preparation for performance, alleging the contract was induced by fraudulent representations made by defendant, and that he was damaged thereby.

The defendant denied the fraud and by cross-complaints sought recovery of the balance due upon the contract.

The trial court found that defendant had falsely represented to plaintiff that it had 10 million, board feet of timber available for sale to plaintiff; that in fact it had only the 947,000 board feet of timber, more or less, described in its contract with the Forest [24]*24Service; that plaintiff relied upon defendant’s representations in entering into the contract, in making the down payment, and in incurring the expenses claimed. Judgment was entered in favor of plaintiff and against defendant for rescission of the contract, recovery of the down payment, and $350 expenses incurred in pursuit of the contract. Defendant brought this appeal.

By its assignments of error defendant urges that the evidence is insufficient to support the findings of the various elements of actionable fraud.

The defendant never had a cruise made of the timber until after this action was commenced. Its representation of 10 million board feet was a mere guess. Opposed to this is the Forest Service sale contract, in which the merchantable timber is estimated at 947,000 board feet. This is supported by the testimony of the district ranger, Howard, and forester, Hilding, that the Forest Service sale to the defendant and the estimate of volume of timber therein set out was based upon an actual cruise made by district ranger, John Morrison.

Ranger Howard further testified that he had worked for the Forest Service for about eleven years and had spent a fair share of that time in marking and cruising timber; that he had not cruised the timber involved, but had been over the area several times; that he had in his office the notes and cruise report made by Morrison; that in his opinion there was not 10 million board feet of timber, 8" breast-high diameter to 30" breast-high diameter of lodge-pole pine and spruce in the area covered by defendant’s contract with the Forest Service; that there was no doubt in his mind that the volume would not “even approach 10-million feet.”

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Bluebook (online)
357 P.2d 95, 83 Idaho 20, 1960 Ida. LEXIS 253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisher-v-idaho-mining-milling-inc-idaho-1960.