Lawrence v. Doty

216 P.2d 465, 96 Cal. App. 2d 937, 1950 Cal. App. LEXIS 1465
CourtCalifornia Court of Appeal
DecidedApril 12, 1950
DocketCiv. No. 17250
StatusPublished
Cited by2 cases

This text of 216 P.2d 465 (Lawrence v. Doty) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawrence v. Doty, 216 P.2d 465, 96 Cal. App. 2d 937, 1950 Cal. App. LEXIS 1465 (Cal. Ct. App. 1950).

Opinion

SHINN, P. J.

This is an action of Robert H. Lawrence and wife against George R. Doty and wife for the rescission of a purchase by plaintiffs of a citrus grove for the sum of $80,000, of which $23,000 was paid down, and the balance secured by a note and trust deed. Plaintiffs had paid an additional $17,000 and interest at the time they brought their action. It was alleged in the complaint that plaintiffs were inexperienced in the operation of citrus groves and ignorant as to their value; that defendants represented that the grove contained 11 acres planted to oranges and 8 acres planted to lemons; that the soil was good; the property had an abundant supply of water from a well on the premises; that the grove was of top grade; that the trees were all of good root stock; that the fruit was not damaged by frost or cold; that the lemon trees were highly productive; that all trees were in a healthy condition; that the grove had a total of 800 lemon trees; that the crop then growing was worth $15,000; that the grove was worth $80,000 and would produce a net profit sufficient for the support of a family. It was alleged that the representations were made with intent to deceive plaintiffs, that they were untrue and that the property was worth not more than $40,000, which the defendants well knew. Plaintiffs made their purchase in January, 1946. The complaint alleged that they became suspicious as to the quality and value of the grove in the spring of 1948, that they caused the soil and water to be analyzed and the trees and location to be examined by experts, and that on or about July 7, 1948, the falsity of the representations was established and could not have been established at an earlier date. Plaintiffs gave notice of rescission July 21, 1948, demanded the return of their money and offered to account for any sums due from them to the defendants. Defendants denied the charges of fraud and alleged that prior to their purchase plaintiffs conducted a complete investigation of the property and its income, and purchased the same in reliance upon their own judgment and the advice of third persons. It was also alleged that in January, 1948, when the sum of $2,500 fell due on the note, plaintiffs applied for and were granted an extension to and including July 15, 1948, in which to make said payment, and that plaintiffs thereby confirmed and ratified their said purchase. After an extended trial the court made findings that defendants did not make any false or fraudulent representations, that all of defendants’ representations were made honestly and with the reasonable belief on their part that the same were true, and [939]*939that on the date o£ plaintiffs’ purchase the property had a reasonable market value of $80,000. It was found that prior to January 1, 1947, plaintiffs conducted a complete investigation of the property, including the soil, water, trees and crops growing thereon, and the income that had been produced therefrom prior to their purchase; that plaintiffs, after their suspicions were aroused, offered the property for sale at prices ranging from $65,000 to $95,000; that in January, 1948, they applied for a six months’ extension of time for the payment of a $2,500 installment on the note, which was granted, and that plaintiffs by their operations of the property and other acts did confirm and ratify their purchase. Plaintiffs appeal from a judgment in favor of defendants.

As grounds for the appeal appellants claim insufficiency of the evidence to support any of the essential findings. Although they make a good argument upon the facts they emphasize the strength of their case, rather than the alleged weakness of the defendants’ case, with relation to the following findings: (1) That defendants did not represent that the grove was a “top place"; (2) that the property was worth $80,000; (3) that plaintiffs did not rely upon the representations of defendants; (4) that defendants did not represent that the grove was growing upon good soil; (5) that defendants did not represent that the orchard had as one of its appurtenances a good water supply; (6) that the representations made by defendants were made honestly and with a reasonable belief that they were true; (7) that plaintiffs conducted a complete investigation of the property including soil, water, trees and crops prior to January, 1947, thereafter continued in possession endeavoring to sell the property, in January, 1948, obtained an extension of time for the payment of an installment of $2,500 and by their conduct did confirm and ratify their purchase. The court made 52 separate findings. They recite in great detail the history of the development and operation of the property from the time it was acquired in 1928 by defendants until plaintiffs’ attempted rescission in July, 1948. We shall paraphrase these findings, inasmuch as they summarize the evidence and indicate the court’s factual conclusions therefrom. In January, 1946 there were 741 lemon trees on the easterly 7.15 acres and 985 orange trees on the westerly 10.90 acres; also improvements consisting of a residence, other buildings, water well, pipe lines, irrigation system, windbreaks and roads of the total value of [940]*940$30,000. Over a 10-year period, 1936 to 1945, the gross receipts from, oranges had averaged about $4,800 per year. For the years 1942-45, inclusive, gross receipts from lemons had been about $8,500 per year. When plaintiffs purchased there were approximately 5,453 boxes of oranges and approximately 4,805 boxes of lemons on the trees; from the time the trees came into bearing the grove had always been a good producer; it had been affected by a freeze only twice, in 1937 and February, 1946; plaintiffs knew of the latter freeze and inspected the trees before they made their purchase; when plaintiffs purchased the orange and lemon orchards were in good condition and producing the average quantity of fruit for the locality; the grove is in a good location but is better for lemons than for oranges; around the residence and other buildings there is an underlying clay bed which fact was made known by defendants to plaintiffs before the purchase, but all the remainder of the land is a deeper sandy loam which produces a good grade of oranges, and lemons of good quantity, of marketable quality and average size; defendants had never made an analysis of the soil as to its quality or depth; plaintiff Robert H. Lawrence before his purchase took upon the property his father-in-law, W. P. Thatcher, a citrus grower who lived near the Doty grove, also, William Phillips, manager of Mr. Thatcher’s orchard and an experienced grower, also, John Newman, a friend of plaintiffs and manager of a company engaged in extensive citrus growing in Ventura County, experienced in citrus trees and soil; they tested the property with a soil tube, discussed the condition of the property, the trees, the type of soil and methods that should be used in operating the orchard; both said Newman and Phillips expressed their opinions to Robert H. Lawrence that the grove and the fruit thereon “looked alright to them”; before the purchase defendants exhibited to plaintiffs records of production of the grove for the years 1941-45 with packing house returns from the years 1936-45, inclusive, all of which were examined by plaintiffs; plaintiffs relied upon their own examination and the examination and opinions of Phillips, Newman and Thatcher and not upon any representations made by defendants, and after the freeze in February, 1946, and before the sale was consummated defendants offered to release plaintiffs from their agreement of purchase but plaintiffs refused the offer; plaintiffs marketed oranges and lemons in 1946 to the value of about $16,000 and in 1947 to the value of about $7,300.

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Bluebook (online)
216 P.2d 465, 96 Cal. App. 2d 937, 1950 Cal. App. LEXIS 1465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-v-doty-calctapp-1950.