Madsen v. Carpenter

68 Colo. 432
Supreme Court of Colorado·Decided April 15, 1920·No. No. 9642·Published

Opinion

Mr. Chief Justice Garrigues

delivered the opinion of the ■court.

[433] In August, 1913, defendant in error, Miles G. Carpenter, a farmer from Sarpy County, Nebraska, came to Moffat, Saguache County, in the San Luis Valley, for the purpose of examining and buying land, if it suited him, and moving to Colorado. After spending some ten days looking at land, he entered into a contract with Andrew Hansen, through the latter’s agents, to- buy a tract near the town of Moffat, at $35.00 per acre, amounting to $5,600.00, which contract, as far as material, is as follows: “Moffat, Colo., Sept. 1, 1913. Received of M. G. Carpenter of Sarpy County, Nebr., the sum of $600.00, as forfeit and part payment on purchase of the following described real estate * * *. The total price to be paid for said above described real estate is $5,600.00, and is to be paid as follows: $600.00 receipted for hereby; $1,800.00 March 1, 1914; $1,600.00 March 1, 3915; $1,600.00 March 1, 1916 interest payable annually at 6 per cent. Title to be good: and a good and sufficient warranty deed to be executed and delivered by Andrew Hansen, his heirs or assigns, on or before March 1, 1914, together with a complete abstract of title. If the title is good and M. G. Carpenter does not make the payment of said balance of $1,800.00 on or before March 1, 1914, then the payment of $600.00 is to be forfeited as partial liquidated damages. If this title is not good and cannot be corrected within a reasonable time, then the payment of $600.00 is to be returned to said Carpenter. Possession to be given March 1, 1914.”

Carpenter took possession of the premises, and, March 1, 1914, made the cash payment of $1,800.00, and executed two promissory notes for $1,600.00 each, one payable March 1, 1915 and the other March 1, 1916, secured by trust deed, and Hansen deeded him the land.

April 2, 1915, Carpenter brought this suit to rescind the contract and to recover the $2,400.00 paid thereon, and to cancel the notes representing the deferred payments, and tendered a déed conveying the land back to Hansen. Pending the trial defendant died and his administrator was substituted.

[434] The complaint alleges that plaintiff was a resident of Nebraska, not familiar with irrigation, and ignorant of the value and productiveness of lands in the San Luis valley, which matters were all known to defendant; that, to induce him to purchase the tract, defendant falsely, fraudulently and knowingly represented to plaintiff that it was a number one farm worth $35.00 per acre, and as good land as any in that vicinity, and that no land of that quality in the locality could be purchased for a less amount; that on account of its being situated within the boundary of the Moffat irrigation district the land would be entitled to receive sufficient water from the district for irrigation; that the district had developed sufficient water to properly irrigate all the land and had purchased machinery with which it would develop additional water, and that the alkali on the land was a good fertilizer; that these statements were false and known by defendant to be untrue when he made them, and were made to deceive plaintiff; that the value of the land did not exceed $15.00 per acre and that plaintiff relied upon the false statements and would not have contracted to purchase the land had he not believed them to be true.

The court found the issues for plaintiff, and entered a judgment and decree ordering that the contract be can-celled and rescinded, and the sale held for naught, and that plaintiff recover from defendant the $2,400.00 paid thereon, with interest, less $500.00 as rental, and that the two notes of $1,600.00 each be cancelled and delivered to plaintiff.

Garrigues, C. J., after stating the case as above.

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Madsen v. Carpenter, 68 Colo. 432 (Colo. 1920).

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