Peardon v. Markley

195 P. 70, 50 Cal. App. 257, 1920 Cal. App. LEXIS 48
CourtCalifornia Court of Appeal
DecidedDecember 3, 1920
DocketCiv. No. 2154.
StatusPublished
Cited by7 cases

This text of 195 P. 70 (Peardon v. Markley) 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
Peardon v. Markley, 195 P. 70, 50 Cal. App. 257, 1920 Cal. App. LEXIS 48 (Cal. Ct. App. 1920).

Opinion

BURNETT, J.

The action was for rescission, on the ground of mistake and failure of consideration, and plaintiff prevailed in the court below.

After alleging that plaintiff desired to purchase a tract of land for grazing purposes, and entered into negotiations with defendant to buy 160 acres, describing it, the complaint proceeds: “And thereupon at defendant’s request plaintiff went to the vicinity of said land and defendant pointed out to plaintiff a tract of land adjoining said land above described upon which there was and is a spring of living water flowing each and every year not less than five inches measured under a four inch pressure during the dry season of each and every year, and defendant then and there positively stated to plaintiff that said lands so pointed out containing said spring aforesaid was the land above described and was the land then owned by defendant. Plaintiff had no means of knowing the location of defendant’s said lands other than said information imparted to him by defendant as aforesaid. And thereafter, on the ninth day of July, 1917, and relying entirely upon said statement made by defendant as aforesaid, and solely because thereof, plaintiff did purchase said lands and premises above described from defendant and did receive the deed therefor, and did then and ' there on said date last named pay to defendant for said lands and premises the sum of sixteen hundred dollars, fully believing that the said lands and premises pointed out to plaintiff as aforesaid contained said spring of living water.

“Said lands were purchased by plaintiff solely for grazing purposes and without living water thereon plaintiff would not have purchased said lands.

“After the purchase of said lands plaintiff continued to believe they were the identical lands pointed out to him as aforesaid and continued in such belief until on or about the 12th of January, 1918, when . . . for the first time he *259 learned that the lands and premises pointed out to him by defendant as aforesaid were not the lands above described and were not the lands which he believed he purchased at the time of the execution of said deed aforesaid but were lands adjoining the same; and he then and there learned that the lands hereinbefore mentioned and which were described in and granted by said deed aforesaid did not and do not contain any spring or any living water at all, and as a matter of fact during the dry season of each and every year said lands above described are entirely dry, devoid of living water, and entirely unfit for grazing or any other useful purposes and of no value to plaintiff, and of very little, if any value at all.” Then follows an allegation that after said discovery plaintiff offered to re-transfer the property to defendant and demanded a return of the sixteen hundred dollars paid as aforesaid.

A general demurrer to the complaint was interposed and overruled. It was submitted without argument. Probably appellant had little faith in his position or he would have tried to convince the court that there was merit in the demurrer. He has apparently acquired more confidence, as he makes in this court elaborate contention that the complaint does not state a cause of action. His attack, however, is based upon the hypothesis that plaintiff sought relief on the ground of fraud, and the burden of appellant’s criticism is that the complaint is fatally defective because there is no allegation that the representation was made with knowledge that it was false or that there was an intent to deceive. No doubt, appellant is right in his theory of the material averments of a complaint to set aside a transaction for the reason that it has been induced by fraud. But respondent bases his action upon the ground of mistake and failure of consideration. It is really an action under section 1689 of the Civil Code for rescission, providing that, “a party to a contract may rescind the'same ... : 1. If the consent of the party rescinding . . . was given by mistake ... ; 2. If through the fault of the party as to whom he rescinds the consideration for his obligation fails, in whole or in part.” The allegations of the complaint are sufficient to show the existence of these two conditions. The pleading might have been more explicit as to the material mistake that was made. But in the absence of an express *260 averment that the representation as to the spring was made in good faith, such would be the presumption, as dishonesty would not be imputed to the defendant. That plaintiff was materially misled by the statement of defendant does very clearly appear, and that an important part of the consideration for the purchase was the transfer of the spring does not admit of doubt. The case made by the complaint is substantially this: Plaintiff negotiated with defendant for the purchase of a stock ranch; defendant represented that a certain valuable spring was a part of said ranch; plaintiff relied upon said representation and would not have purchased the property without said spring; shortly after the sale plaintiff ascertained that defendant did not own the spring, and the place not being adapted to his use without said water, he immediately proceeded to rescind the contract. Such facts ought to be sufficient to justify a court in granting relief and we have no doubt they are. Similar cases have been passed upon by the courts and we may refer to two of these.

In Johnson v. Withers, 9 Cal. App. 52, [98 Pac. 42], it was held that a contract to sell and purchase mineral land may be rescinded by the purchaser and a deposit recovered back promptly upon the discovery of a material mistake of fact as to the quantity of mineral in place, the mistake having arisen from a wrong calculation of an expert. The court said: “Plaintiffs dealt with defendants upon the truth of this statement, and it was incorrect. It was the one estimate of quantity, the one concrete fact, upon which they relied in making the purchase. It was such a material mistake as courts of equity will relieve from.”

In Taber v. Piedmont Heights Bldg. Co., 25 Cal. App. 222, [143 Pac. 319], the intending purchasers visited certain premises with the vendor’s agent and indicated to the latter the particular parcel they would buy and also the land they did not desire to purchase, and upon his mistaken statement that the property they desired was lot No. 35, they purchased the lot bearing that number, when as a matter of fact it included a portion of the land which they had rejected. It was held that the purchasers were entitled to rescind upon the ground of mistake.

It is also true that the vendee had a right to rely upon the representations of the vendor. The latter was *261 presumed to know the extent of his property, and the former-was not required to make further inquiry at his peril. Of course, if it had been apparent that the spring was not included within the boundaries of the proposed purchase, the folly of the vendee in rejecting the testimony of his own senses would prevent relief, but such is not this case. His attention was not directed to any fact or circumstance inconsistent with the representations of the vendor. It is no excuse that the vendee by an independent investigation might have ascertained that the spring did not belong to the vendor and that it was not included in the deed of conveyance.

In Quarg

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Bluebook (online)
195 P. 70, 50 Cal. App. 257, 1920 Cal. App. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peardon-v-markley-calctapp-1920.