Nelson v. Berkner

166 N.W. 347, 139 Minn. 301, 1918 Minn. LEXIS 473
CourtSupreme Court of Minnesota
DecidedFebruary 8, 1918
DocketNo. 20,683
StatusPublished
Cited by27 cases

This text of 166 N.W. 347 (Nelson v. Berkner) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Berkner, 166 N.W. 347, 139 Minn. 301, 1918 Minn. LEXIS 473 (Mich. 1918).

Opinion

Holt, J.

Plaintiff, claiming to have rescinded the contract for the purchase of a farm from defendant because of the latter’s fraud, brought this action to recover the part of the purchase price paid. The verdict was for plaintiff. Defendant appeals from the order denying his motion in the alternative for judgment notwithstanding the verdict or a new trial.

Plaintiff, a farmer tenant from Iowa, was induced by defendant’s agent to come to Brown county, Minnesota, in the fall of 1915, to look at farms in the vicinity of Sleepy Eye with a view to purchasing. He was shown defendant’s farm of 197 ácres, among others. He did [303]*303not become interested. A few weeks thereafter defendant sent an agent down to bring him back. He came to Sleepy Eye, and, the same afternoon, was taken by defendant to this farm, and to another not far from it. In the morning he decided to again examine the farm in question. Defendant took him there in an autobmobile. He returned to Iowa and notified defendant and his agent that he would not invest. Shortly thereafter defendant went to Iowa, found plaintiff in his home, and persuaded him to buy the farm. A contract evidencing the terms of sale was executed, it bears date October 36, 1915. Therein it was agreed that $34,000 should be paid for the farm, $3,000 of which was to be paid upon the execution of the contract and $31,000 on or before March 1, 1936; with interest at 5 per cent, payable annually. It was also provided that in case plaintiff failed to make the payments the contract might be terminated at the election of defendant, in which ease the payments made thereunder should be retained by defendant in satisfaction of the damages sustained by the breach. Plaintiff paid the $3,000 as agreed.

The misrepresentation pleaded and submitted, to the jury related to the number of acres under cultivation; the distance to the schoolhouse; the worth of the farm as compared with others in Brown county, and the promise that, in case plaintiff could not make a success of farming the land the first year, the $3,000 paid with interest should be refunded. These issues were submitted in a clear, concise and legally accurate charge which is not challenged. But by motion for judgment notwithstanding the verdict, and by proper objections and motions to strike out testimony 'bearing upon the different misrepresentations alleged, except the one whether the farm was as good as others in the county, and exceptions taken to the rulings, defendant preserved his right'to assign errors thereon in this court.

That the motion for judgment notwithstanding the verdict was rightly dented will appear from the conclusions reached upon the errors assigned on the rulings at the trial.

We are of opinion that the evidence upon the alleged misrepresentation of the acreage under cultivation in the 130-acre tract lying north of the road passing through the farm, made a fair question for the jury. Although plaintiff had been upon the land three times before the con[304]*304tract was'made, and admitted that he could fairly well judge acreage, it is to be remembered that at neither of the times when he visited the farm did he entertain any marked intention to buy. Therefore when he came to the point of buying, and not being where he could again make an investigation as to matters appearing of importance to him, it is not to be wondered at that he was uncertain as to the area of plow land and should make inquiry. Nor is it unreasonable that he should then have a right to rely upon statements of defendant, the owner, in reference thereto. That there was about 40 acres less plowland in the 120 acre tract than represented was certainly a material misrepresentation. We are not inclined to follow Van Horn v. O’Connor, 42 Wash. 513, 85 Pac. 260, it not being in accord with our own decisions of Steams v. Kennedy, 94 Minn. 439, 103 N. W. 212; Lang v. Merbach, 96 Minn. 431, 105 N. W. 415.

What has been said concerning the representations in relation to the acreage of the plow land, applies to those relating to the distance to the school. It- was for the jury to determine whether plaintiff understood, and had the right to understand, that the distance stated was from the dwelling house to the sehoolhouse; if not, there was no misrepresentation in this respect.

No assignment of error directly questions the propriety of submitting to the jury whether defendant represented the farm to be as good as any in Brown county. Upon this issue it cannot be held that samples of the soil from the farm were erroneously received. The same may be said as to the evidence of value. It is plain that the representation related to the worth and adaptation of the land for farming purposes — that it was as good for general farming as that of other farms in the county.' As bearing on the truth or falsity of that proposition, the kind of soil and subsoil was important. And the market value, in the opinion of those qualified to judge and having knowledge of soil conditions, tends to prove whether this farm was as good as other farms. ■ It was for the jury to say, under all the circumstances, whether -this alleged misrepresentation was mere trade talk, or- made and understood as a material statement upon which plaintiff could rely in entering the contract.

The chief attack upon the rulings of the trial court arises out of a refusal to sustain objections to evidence tending to establish fraudulent [305]*305promissory statements and not granting defendant’s motion to strike out the testimony received upon that issue. As a general rule unfulfilled promises as to future acts or events support neither an action for deceit nor avail as grounds for rescinding a contract induced by such promises. But there is ample authority to sustain the proposition that a promise as to a future act, made with nó intention of keeping it, and solely to induce another person to enter a contract, is a legal fraud which gives such person the right to rescind. See cases cited in note to Cerny v. Paxton & Gallagher Co. 10 L.R.A.(N.S.) 640; Mutual Reserve Life Ins. Co. v. Seidel, 52 Tex. Civ. App. 278, 113 S. W. 945; Braddy v. Elliott, 146 N. C. 578, 60 S. E. 507, 16 L.R.A.(N.S.) 1121, 125 Am. St. 523. This is the rule in this state. Albitz v. Minneapolis & Pac. Ry. Co. 40 Minn. 476, 42 N. W. 394; Hodsden v. Hodsden, 69 Minn. 486, 72 N. W. 562; McElrath v. Electric Inv. Co. 114 Minn. 358,, 131 N. W. 380; Cox v. Edwards, 120 Minn. 512, 139 N. W. 1070; Edward Thompson Co. v. Schroeder, 131 Minn. 125, 154 N. W. 792.

In the Albitz case the promissory representation upon which the decision was rested contradicted no provision in the contract, while here it is claimed that the promise to pay back the $3,000 with interest is inconsistent with the written stipulation .'that any payments made should be retained by defendant in ease plaintiff defaulted. But the rule of .evidence that parol testimony may not be received to contradict a written agreement, or to add to or modify its terms, is subject to the exception that, where the fraudulent or false representation of the one party procured the other party’s signature, the representation may be proven for the purpose of annulling or rescinding the contract, no matter how variant with its terms. In Edward Thompson Co. v. Schroeder, supra, the Chief Justice said: “The point that defendant is precluded from showing the fraud by reason of the clause in the contract that no representatións had been made except as stated in the contract is disposed of by the case of General Electric Co. v. O’Connell, 118 Minn. 53, 136 N. W.

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Bluebook (online)
166 N.W. 347, 139 Minn. 301, 1918 Minn. LEXIS 473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-berkner-minn-1918.