Hanneman v. Olson

206 N.W. 155, 114 Neb. 88, 1925 Neb. LEXIS 28
CourtNebraska Supreme Court
DecidedDecember 8, 1925
DocketNo. 23335
StatusPublished
Cited by3 cases

This text of 206 N.W. 155 (Hanneman v. Olson) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanneman v. Olson, 206 N.W. 155, 114 Neb. 88, 1925 Neb. LEXIS 28 (Neb. 1925).

Opinion

Dean, J.

The plaintiffs Hanneman are brothers, residing at Mag[89]*89nolia, Iowa, where they were formerly engaged in the farm implement, hardware, and automobile business. They commenced this action in the district court for Douglas county, to recover damages for an alleged fraud said to have been perpetrated by defendants in the sale of a certain tract of' eastern Colorado land to them, and in this they allege they were damaged in the sum of $63,200, for which they sought, to recover judgment. Upon submission of the evidence, plaintiffs recovered a verdict, and judgment thereon, for $43,560, this sum including lawful interest on the indebtedness up to the date of the verdict. Defendants have appealed.

It may here be observed that this action involves a consideration of two land, sale contracts between the parties. The first contract is dated October 21, 1919, and has to do-with land designated in the record as the “Frost tract,” consisting of approximately, 2,880 acres, for which the purchase price was $35 an acre, or a little over $100,000 in all. On this contract plaintiffs paid $5,800 on the date of purchase. The second sale contract, dated December 20, 1919, has to do with another tract of land, consisting of about the-same number of acres and at about the same price. The first tract having been subsequently exchanged for the second tract, the above payment of $5,800 was applied thereon, as a part payment. The contract in suit also obligated plaintiffs to deliver to defendants a certain stock of implements, hardware, automobiles and accessories, then at Magnolia, Iowa, or so much thereof as was necessary to-pay out the unpaid remainder of the purchase price. This stock of merchandise was owned by plaintiffs and was valued at approximately $28,000 or $30,000, at wholesale prices.

Before the contract for the Frost tract was closed, plaintiffs made a thorough examination of the land and found a body of “about 1,100 acres of wheat” coming up at the time, and they noted that the farm equipment, of the then supposed former owner, consisted of “four or five tractors, a plow for each tractor, a couple of discs, a couple of drills, a tank wagon” and other implements, all of which tended to show that it was a fertile and producing farm.

[90]*90When the contract for the Frost tract was entered into, plaintiffs were strangers in Colorado and had been but a few days in the vicinity of the land. And it appears that, from the time of their arrival until their departure, they were constantly in the company of defendants and their agents, and among the latter were Swanson, Stout, and Armstrong. On this point Homer Hanneman testified: “Q. You may tell who was with you during the time you were there from the time you hit Burlington, Colorado, until the time that they put you on the train. * * *A. There was always Mr. Olson, or Mr. Swanson, Mr. Stout, or Mr. Armstrong with us all the time.” So that from this evidence the jury doubtless concluded that plaintiffs had little opportunity to make an independent inquiry and investigation of other Colorado lands in respect to soil composition, value, quality, productivity, and the like. And it appears from the evidence that, while plaintiffs were being driven to the railroad station, accompanied by some of the vendors and their agents, preparatory to returning to their Iowa home, a farmer named Rudolph was sighted “100 or 150 yards away,” and that “Mr. Swanson got out of the car and started to walk ahead of us and talk to Mr. Rudolph a little while before we got there.” When Swanson and Rudolph came to the car, the latter told plaintiffs that the Frost tract was worth “about $60 to $65 an acre.” In respect to this incident, Mr. Rudolph testified that Swanson had a talk with him “separate and apart from Hanneman brothers,” and that he, Swanson, told him “to price this land at $65 an acre — big deal on.” And this Rudolph did.

About two months after plaintiffs bought the Frost tract, or believed they had bought it, they were called up by telephone at their Iowa home from Missouri Valley, by one of defendants’ agents, and informed that, owing to the then recent death of the late owner of the land which they had bought, the title théreto was in such condition that it would take at least a year, by appropriate court proceedings, to make the title merchantable. Plaintiffs then, by appointment; went to Omaha, taking Mr. Stirtz, a brother-in-law, [91]*91along, where the party met Olson, Swanson, and Stout, by whom an exchange of the Frost land was proposed for another 2,880-acre tract of Colorado land, which, they were then informed, was owned by defendants, and which they were willing to sell at approximately the same price which was paid for the Frost land. This tract was a considerable distance from the Frost tract, and was represented by defendants to be several miles nearer town and well improved, and a better tract than the one they had purchased in many material respects.

At first plaintiffs expressed an entire unwillingness to consent to an exchange of land for other land which they had never seen, and for a time they refused to even consider the proposition unless they were given time and opportunity for examination. But in this resolve, as disclosed by competent evidence, plaintiffs were overborne by the representations made by defendants and their agents, in respect of the value of the proposed tract and the like, and, in apparently implicit reliance on the representations so made, an exchange contract, or rather a new contract, for the purchase of the proposed tract was there entered into. It may here be noted that it afterward transpired that defendants never owned the Frost tract and the transaction proved to be only a pretended sale, though one of the vendors testified that they had a verbal agreement with the owner authorizing a sale.

In respect of the false and fraudulent representations, which induced the sale of the second tract, there is competent evidence, on this vitally material feature, tending to prove that defendants, by themselves and their agents, falsely represented to plaintiffs that a very large proportion of ¡the 2,880-acre tract under consideration, namely, the second tract, was as smooth as a floor; that the soil was fertile; that it was free from sand and gravel; that it would produce 25 bushels of wheat to the acre and upward, and other crops in like proportion, and that some of it was sub-irrigated land which, for growing alfalfa, was easily worth $250 an acre. Defendants further informed plaintiffs that [92]*92they bought the land for $32.50 an acre and were willing "to sell it for the slight advance of $2.50 an acre, or $35, and gave as a reason for selling that they had another tract of land which they wanted to retain, but that, solely for financial reasons, they were unable to keep both and were therefore willing to sell the land in question to plaintiffs even at .a sacrifice. But there is evidence tending to prove that the land was bought by defendants shortly before, for less than half of the sum which they represented to plaintiffs they had paid for it.

Plaintiffs consulted Stirtz, and he advised them to make the exchange and to forego a personal examination. He, being a man of mature years, assured them, in substance, that he, Stirtz, had become informed in respect of Olson’s •standing, and that he was a reliable man, who could be depended on, and would scorn to make false representations in order to effect a sale or a trade.

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Cite This Page — Counsel Stack

Bluebook (online)
206 N.W. 155, 114 Neb. 88, 1925 Neb. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanneman-v-olson-neb-1925.