Koch v. Rhodes

188 P. 933, 57 Mont. 447, 1920 Mont. LEXIS 52
CourtMontana Supreme Court
DecidedMarch 29, 1920
DocketNo. 4,114
StatusPublished
Cited by24 cases

This text of 188 P. 933 (Koch v. Rhodes) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Koch v. Rhodes, 188 P. 933, 57 Mont. 447, 1920 Mont. LEXIS 52 (Mo. 1920).

Opinion

MR. JUSTICE MATTHEWS

delivered the opinion of the court.

This action was brought to recover damages for the alleged fraudulent representations made by the appellants to respondent in the preliminary negotiations for the sale of real estate and personal property in Missoula county. Appellants are husband and wife.

The real property consisted of two tracts of land, one known as the “home place” and the other as the “timber claim,” lying across the Missoula River from the home place. The personal property consisted of farm machinery and livestock used on the [450]*450ranch, the contract price for the whole being $9,500, payable $2,000 down, $3,500 on surrender of possession, and the balance in four installments falling due annually, commencing with January 1, 1916. The contract was entered into on June 28, 1915, and respondent took possession on July 11 following, worked the ranch during the summer, and on September 30, 1915, this action was commenced, and thereafter, while the suit was still pending, paid the first note for $1,000 on January 1, 1916. The cause was tried in August, 1916, resulting in judgment being entered on verdict on August 7, 1916, for respondent for $2,500 damages. Motion for a new trial was denied, and appeal taken from the judgment and from the order denying the motion for a new trial.

The complaint alleges that prior to and at the time when the said contract was entered into the defendants personally and through their agent, one Allen Stephens, who was employed by the defendants to assist in selling the said property, for the purpose of inducing the plaintiff and with the intention of deceiving him, made certain false and fraudulent representations regarding the property, the nature of which will be taken up in the discussion of the assignments of error; that each of such representations was untrue; that they were relied upon by plaintiff and were as to material facts concerning the property; that plaintiff exercised ordinary care to ascertain the truth of the statements, but could not, with due diligence or ordinary care, learn that they were untrue, believed the representations and acted thereon, and would not have purchased the property except for such representations; that defendants occupied a position of advantage, had no reasonable grounds for believing that said statements and representations or any of them were true, and in fact knew that they were untrue. The complaint further alleges that the actual value of the property did not exceed $3,500. The answer denies generally and specifically the allegations of fraudulent representations. The appellants make, twenty-one assignments of error.

[451]*4511. Assignments 1 and 2 predicate error on the admission of [1] the bill of sale of the personal property and testimony concerning its value. There is no charge of misrepresentation concerning this property. However, the property was sold at a lump sum. The value of the personal property made up a part of the total purchase price, and, in order to arrive at the contract price of the land, it was necessary first to determine the value of the personal property. The consideration.recited in the bill of sale was $10. The bill of sale was therefore admissible to show what property was included, as was the testimony concerning the value of such property.

■ 2. Specifications 3 and 7 are based upon the action of the [2] court in permitting respondent to answer, over objection, the question: “Did he [Khodes] make any statement as to the amount of hay the meadow would produce?” It is contended that, if sueh a statement was made, if could be no more than an expression of opinion based on past experience as to the future capabilities of the meadow, and that such a statement could in no event be the basis of a charge of false representation — citing Butte Hardware Go. v. Knox, 28 Mont. Ill, 72 Pac. 301. The holding in the case cited does not support the contention that “in no event” could a statement of an opinion be the basis of such a charge. "What Mr. Commissioner Poorman said in the Butte Hardware Case was: “Mere expressions of opinion or of: judgment do not, except in particular cases, which must be shown by the pleading, constitute actionable fraud or false representa-tions.” This condition is met by the pleading in this case and by the proof, and in the case of Como Orchard Co. v. Markham,. 54 Mont. 438, 171 Pac. 274, this court said: “We think the,following rule is sustained by reason and the authorities: If the: party expressing the opinion possesses superior knowledge, such-as would reasonably justify the conclusion that his opinion carries with it the implied assertion that he knows the facts which justify it, his statement is actionable if he know-s that he does, not honestly entertain the opinion because it is contrary to the facts.” (See, also, 12 R. C. L. 254.)

[452]*452The answer to the question was: “He said he never cut less than 200 tons of hay in any ordinary year; cut over 200 tons. He claimed he cut 236 tons in 1914.” Here was no expression of opinion, but statement of facts based on his experience of years on the ranch in question.

It is urged that proof that the same land produced but fifty [3] tons in the season of 1915 was not permissible, and that its admission constituted error. The respondent testified that the year 1915 was a very good year, and that he cultivated the meadow properly. Of course, to be actionable, the statement of Rhodes, if made, must have been false and must have been ■known by Mm to be false, or have been recklessly made-. It was therefore proper for respondent to prove any facts tending to show the falsity of the statement and to lead to the conclusion that Rhodes knew of its falsity. Testimony as to the yield in the succeeding year, as well as of the yield in 1913, later sworn to be but fifty-five tons, was clearly admissible for this purpose.

Where fraud is 'alleged, great latitude of proof is allowed, [4] and every fact or circumstance from which a legal inference of fraud may be drawn is admissible. (12 R. C. L. 429, and eases cited.)

3. Under tMs rule, the action of the court in permitting the [5] testimony of one Wood as to statements made to him by ■Rhodes in attempting to secure a loan for respondent about the time the contract was entered into was justified. It is contended that the admission of such testimony was error, as the statements were not brought to the attention of Rhodes. This contention is without merit. This was not an attempt to impeach the testimony of Rhodes, but was independent proof of facts tending to show that he knew the falsity of certain statements at the time he made them; nor does the fact that he was at the time acting as agent for respondent render the testimony inadmissible for this purpose.

4. Specification 5 is on proof of the allegation of [6, 7] misrepresentation as to the condition of the surface of the meadow; [453]*453it being contended that the plaintiff had made two trips to the land and had once sent his wife as his agent to inspect it, and that the representation was made as to a physical condition open to observation.

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Cite This Page — Counsel Stack

Bluebook (online)
188 P. 933, 57 Mont. 447, 1920 Mont. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koch-v-rhodes-mont-1920.