Mori v. Covello

379 P.2d 727, 61 Wash. 2d 630, 1963 Wash. LEXIS 483
CourtWashington Supreme Court
DecidedMarch 14, 1963
DocketNo. 36366
StatusPublished
Cited by1 cases

This text of 379 P.2d 727 (Mori v. Covello) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mori v. Covello, 379 P.2d 727, 61 Wash. 2d 630, 1963 Wash. LEXIS 483 (Wash. 1963).

Opinion

Hunter, J.

This is an appeal from a judgment awarded to the plaintiffs, Hideo Mori and Kimiko Mori, husband and wife, against the defendant, Salvatore T. Covello, by reason of false representations in the sale of a house and lot.

In the late fall of 1958, the defendant (appellant) commenced building a dwelling for his residence in Seattle. The lot on which it was being constructed required a fill in the rear, northeast corner of the lot which resulted in a steep embankment of earth and rock about 20 feet in height. To retain the bank a 6 or 7-foot bulkhead of logs placed lengthwise was built up from the base of the fill. The porch in the rear of the dwelling extended nearly to the edge of the east embankment.

[631]*631The house was occupied by the defendant in January, 1958. In August, 1958 the house and lot were sold to the plaintiffs (respondents). During the rainy season in November of that year, the bulkhead gave way causing approximately 100 yards of debris to slide onto the adjoining property of a neightbor, Mrs. McConnaughy. The plaintiffs were required to remove the debris and were directed by the city to build a satisfactory retaining wall. A rock retaining wall was constructed by the plaintiffs, and, when the defendant refused to reimburse the plaintiffs therefor, this action against the defendant was commenced. The case was tried before the court without a jury.

The court entered finding of fact No. VII, as follows:

“That before entering into said purchase agreement and before purchasing the above-described property and home, the defendant did represent that the log wall would hold, and did represent that said retaining wall had been passed by the City Building Department Inspector and that the plaintiffs had nothing to worry about; that the defendant at the time that he made the said representations should have known that they were false and that he made the said representations recklessly for the purpose of inducing the plaintiffs to purchase the real property and the dwelling house thereon; that the said plaintiffs did rely upon said representations and were induced thereby to make the said purchase; that the plaintiffs did not know the falsity of the defendant’s representations and would not have purchased the said home had they been aware of the falsity of said representations. ”

and conclusions of law Nos. I and II:

“I. That there is actionable misrepresentation which damaged the plaintiffs herein in the sum of $2,068.00.
“II. That plaintiffs are entitled to judgment against the defendant Salvatore T. Covello in the sum of $2,068.00.”

This appeal followed.

The defendant contends there is no actionable fraud because there is no clear, cogent and convincing evidence in the record to support the trial court’s finding of fact No. VII, and conclusions of law Nos. I and II, supra. The rule which is applied to show actionable fraud is not disputed; [632]*632the defendant relies on our oft-repeated statement that it is necessary to prove each of the nine essential elements of fraud by clear, cogent and convincing evidence, citing Haagen v. Landeis, 56 Wn. (2d) 289, 352 P. (2d) 636 (1960) and Graff v. Geisel, 39 Wn. (2d) 131, 234 P. (2d) 884 (1951).

We are satisfied that finding of fact No. VII and conclusions of law Nos. I and II contain the nine essential elements of fraud. The defendant has not argued, on this appeal, that the element of damages contained in conclusions of law Nos. I and II is erroneous in the event the other elements of fraud are established. Therefore, the sole issue with which we are confronted is whether those elements of fraud contained in finding of fact No. VII are supported by clear, cogent and convincing evidence.

In making this determination, we need only consider the evidence most favorable to the plaintiffs. Shultes v. Halpin, 33 Wn. (2d) 294, 205 P. (2d) 1201 (1949). We find this evidence to be as follows:

Mr. Mori observed the embankment in the rear of defendant’s house immediately prior to the purchase of the defendant’s house and lot in July, 1958. The following conversation took place, to which Mr. Mori testified, on direct examination, as to the plaintiffs’ examination of the premises and as to the representations of the defendant:

“Q Did you on any of these occasions see any wall either on the north or east side of the property? A Yes, we went on the back of the house, on the east side, and examined there, and I asked Mr. Covello about the slope, or retaining wall that he had on that east side of the house, and I asked him if it would hold or not, and Mr. Covello said, ‘Well, this has been passed by the City Building Inspector,’ and I had nothing to worry about.”

Again, on cross-examination, he testified:

“Q What did you do when you came back that time? A We looked at the back of the house, and also the retaining wall. I asked Mr. Covello if the dirt would hold up, and Mr. Covello said the retaining wall had been inspected by the City Building Department Inspector, and that I had nothing to worry about.”

[633]*633Mrs. Fredlund, a friend and business adviser of the plaintiffs, testified to the following conversation with the defendant in the escrow office as to the representations of the defendant:

“Q Now, what was said at the escrow office between Mr. Mori and Mr. Covello? A When they came into the escrow office — I talked to Mr. Mori, whether it was safe there, the logs there. ... A Then he came down, and we sat down and I asked if I could ask Mr. Covello a question, if it was safe, and he said, ‘Yes. I have built lots of houses, and the logs will not slide, because it was built on solid rock. I built it for myself, and things have come up and I have to sell it. ... Q Did Mr. Covello state that the retaining wall had been approved by the building department? A That is what he said. ...” (Italics ours.)

Mrs. Mori testified as to the representations of the defendant and the reliance thereon by her:

“Q — about the east bank? A Yes, my husband was asking him, talking to him. Q What did your husband say? A He say, ‘Is this all right?’ something like that. Q What did Mr. Covella say? A Everything okay and passed by city inspectors so nothing to worry about anything. . . . Q Mrs. Mori, if Mr. Covello did not tell you that everything was approved and you don’t have anything to worry about would you have agreed to buy that property? A No.”

Mrs. McConnaughy, the neighbor to the east of the plaintiffs, testified, on direct examination, as to the defendant’s knowledge regarding the insecurity of the bulkhead:

“Q What was the first conversation that you had with him in reference to this steep east bank of the Mori property? A Well, I said I wasn’t very sure of that hill; it wasn’t very safe. . . . Q What was the date when you had the first conversation with him? A Well, I would not remember the date of it. Q . . . What was he doing in reference to this east hill, or what was he doing on the bank? A Well, he put in some logs on the bank.”

On cross-examination she testified as follows:

“Q Mrs. McConnaughy, you stated that there were two slides? A Yes. Q Do you recall exactly when the first one occurred? A I don’t remember the date.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bland v. Mentor
385 P.2d 727 (Washington Supreme Court, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
379 P.2d 727, 61 Wash. 2d 630, 1963 Wash. LEXIS 483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mori-v-covello-wash-1963.