O'Connor v. Whitesitt

193 P.2d 365, 121 Mont. 257, 1948 Mont. LEXIS 28
CourtMontana Supreme Court
DecidedApril 7, 1948
DocketNo. 8773.
StatusPublished
Cited by1 cases

This text of 193 P.2d 365 (O'Connor v. Whitesitt) 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
O'Connor v. Whitesitt, 193 P.2d 365, 121 Mont. 257, 1948 Mont. LEXIS 28 (Mo. 1948).

Opinions

MR. JUSTICE CHOATE

delivered the opinion of the court.

This action is one for the rescission of a written agreement for the purchase of a five acre tract of land near Stevensville, Montana, and the recovery of the sum paid upon its purchase price.

Plaintiff’s complaint alleges that on July 11, 1946, the defendant, by an agreement in writing designated “Earnest Money Receipt,” agreed to convey to the plaintiff said tract of land for a total consideration of $5,800, payable $50 down, $2,500 July 16, 1946, and $3,250 August 16; 1946.

The execution of the agreement and the making of the first two payments totalling $2,550 are admitted. The complaint alleges that before the execution of said agreement plaintiff inspected the property and “was conducted on a tour of examina *259 tion of the property by defendant.” At this time it is alleged tbat the defendant represented to tbe plaintiff, (a) tbat tbe well on tbe property was a “good and sufficient well, capable of supplying an ample quantity of water at all times for domestic use”; (b) tbat a quantity of lumber, siding and composition shingles then piled on tbe premises would be included in tbe sale should plaintiff agree to purchase tbe property; (c) tbat defendant would furnish an abstract of title.

This agreement to furnish an abstract was later complied with and no reliance on tbe asserted failure to furnish same is now claimed. Tbe complaint further alleges tbat on or about July 20, 1946, plaintiff for tbe first time discovered a “concealed” ditch by which water from an irrigation ditch located near tbe property bad been conveyed to tbe well on said property, and that at said time plaintiff also discovered a bole which bad been made in tbe concrete lining of tbe well to permit discharge of irrigation water into said well; tbat at tbe time of tbe discovery of said “concealed” ditch its trough was still wet and damp but tbat a dam or closure bad been placed across said ditch to prevent tbe flow of irrigation water through tbe same. It is alleged tbat tbe water which bad been conveyed into said well through said ditch was harmful and totally unfit for domestic use. Also tbat said well goes dry for a considerable time each year and tbat defendant has often been required to haul water for domestic use. Plaintiff further alleges tbat when he took possession of the property tbe said lumber and building material which bad been pointed out to him as going with tbe land bad been removed by tbe defendant and returned to tbe lumber company from which they were originally purchased.

Tbe complaint further alleges tbat tbe defendant was in a position of advantage with respect to knowledge of tbe facts and tbat be made tbe representations above set forth knowing of their falsity and with intent to deceive and defraud plaintiff; tbat plaintiff relied on said representations, believing them to be true and was thereby induced to enter into tbe agreement for tbe purchase of said land.

*260 Defendant’s answer admits that he informed plaintiff that the well on the premises “was a good well capable of supplying an ample quantity of water at all times for domestic use.” As to the “concealed” ditch which plaintiff alleged had been used to carry water to the well on the premises, defendant admits that there was a small irrigation ditch located near the well on said land but denied that water carried in this ditch was discharged into the well. Defendant also denied that the hole in the concrete lining of the well had been made to permit irrigation water carried in said concealed ditch to enter the well. Defendant also denied the allegations as to the removal of the building materials from said premises.

Plaintiff’s claim of right to have a rescission of his contract because of defendant’s removal of about $75 worth of lumber and building materials from the premises for which plaintiff had contracted to pay $5,800 cannot be sustained. This breach of agreement by the defendant went to only a very small part of the consideration and could easily be compensated in damages. It cannot therefore constitute a ground for rescission of plaintiff’s contract.

In Johnson v. Meiers, Mont., 164 Pac. (2d) 1012, 1014, we quoted with approval the following from 12 Am. Jur., “Contracts,” section 440: “ ‘It is not every breach of a contract or failure exactly to perform' — certainly not every partial failure to perform — -that entitled the other party to rescind. A breach which goes to only a part of the consideration, is incidental and subordinate to the main purpose of the contract, and may be compensated in’ damages does not warrant a rescission of the contract; the injured party is still botmd to perform his part of the agreement, and his only remedy for the breach consists of the damages he has suffered therefrom. A rescission is not warranted by a mere breach of contract not so substantial and fundamental as to defeat the object of the parties in making the agreement. Before partial failure of performance of one party will give the other the right of rescission, the act failed to be performed must go to the root of the contract or the *261 failure to perform the contract must be in respect of matters which would render the performance of the remainder a thing different in substance from that which was contracted for.’ ” Eliminating the removal of the building material from consideration there remains the sole question whether rescission of said contract may be had because of defendant’s alleged fraudulent representations concerning the well on said premises. These representations were as follows: That the well was a “good well,” “100%,” and “was capable of supplying an ample quantity of water at all times for domestic use.”

To show the falsity of these representations plaintiff sought to establish the following facts: (1) That the well in question was not a “good well,” that its water was contaminated and rendered unfit for domestic use by reason of the fact that there was a “concealed ditch” leading to a hole in the concrete wall of the well through which the defendant ran water from an irrigation ditch into the well and that defendant had constructed this concealed ditch in order to fill the well with water from the irrigation system; (2) that the well goes dry for a considerable time during each year and that plaintiff has often had to haul water for domestic use.

As we have indicated, the record discloses without eontradiction that the defendant did make the above representations as to the quality and capacity of his well. We are of the opinion also that such representations were of matters peculiarly within the knowledge of the defendant and that plaintiff was entitled to rely on them.

The controlling question however is, were these representations false? Without attempting a summary of all the evidence presented in the 400 page transcript in regard to said alleged false representations, the following is its substance.

The Well and the Concealed Ditch. Plaintiff’s Case. Plaintiff testified that on the 10th of July he and his wife and Mr. and Mrs. Whitesitt looked over the Whitesitt property and Mr. Whitesitt took them over to the well. At that time the well was fully covered on top with planks. Plaintiff discovered a hole

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Bluebook (online)
193 P.2d 365, 121 Mont. 257, 1948 Mont. LEXIS 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconnor-v-whitesitt-mont-1948.