Powell v. Oak Ridge Orchards Co.

258 P. 636, 84 Cal. App. 714, 1927 Cal. App. LEXIS 385
CourtCalifornia Court of Appeal
DecidedAugust 4, 1927
DocketDocket No. 5208.
StatusPublished
Cited by12 cases

This text of 258 P. 636 (Powell v. Oak Ridge Orchards Co.) 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
Powell v. Oak Ridge Orchards Co., 258 P. 636, 84 Cal. App. 714, 1927 Cal. App. LEXIS 385 (Cal. Ct. App. 1927).

Opinion

KNIGHT, J.

The defendant appeals from an adverse judgment in an action for the rescission of a contract for the sale of land, and for the recovery of certain payments made thereunder, one of the grounds of appeal being insufficiency of the evidence to sustain the findings.

On January 3, 1921, plaintiffs entered into the contract in question for the purchase of ten' acres of land in San Luis Obispo County belonging to defendant, for the sum of $4,500. An initial payment of $1,125 was made at the time the contract was executed, and it was agreed that the balance should be paid on or before January 3, 1926. The property was set out to young orchard, plaintiffs taking immediate possession and thereafter expending the sum of $215 in caring for and cultivating the same. On February 15, 1923, plaintiffs rescinded the contract upon the ground of fraud, and on April 21, 1923, commenced the within action. Subsequently and on May 15, 1923, defendant served plaintiffs with notice to pay the taxes and the interest on deferred payments as required by the terms of said contract, or that in default thereof defendant would elect to declare immediately due the unpaid portion of the principal sum, together with interest, taxes, and other charges, and thereupon would institute suit for the recovery of the same. Answering the complaint, defendant, besides denying the allegations of fraud, filed a cross-complaint to recover the balance due under said contract.

Upon the issue of fraud the court found, in conformity with the averments of the complaint, that plaintiffs were induced to enter into said contract as a result of fraudulent representations made by defendant to the effect that said property “was of the reasonable value of $4,500.00, and that the same was free from hardpan and that there was no hardpan under or near the surface of said land, nor any hardpan in the district in which said land was situated, and that said land was particularly productive *717 and was the hest orchard and farm land, and that the soil thereof was particularly adapted to the raising of fruit.” It further found that said representations were false, and that the same were fraudulently made for the purpose of deceiving plaintiffs and of inducing them to enter into said contract; that said property was in fact “entirely underlaid with hardpan from eight to fourteen inches below the surface of the land, which hardpan was of varying thicknesses and impervious to water; that said land was situated in a district where hardpan generally existed; that the top soil of said land was mixed with boulders and rock and that very little if any of said land was, or is suitable at all for raising fruit; that said land was not worth more than $1,500.00 at the time defendant represented it to be worth $4,500.00.” Furthermore, the court found that plaintiffs had no previous experience as orehardists or farmers, nor did they have any knowledge as to the value or character of land, nor any experience in buying such property; and that in entering into said contract they relied wholly upon the representations made to them by defendant.

In our opinion the evidence supports the foregoing findings, some of the essential facts established thereby being as follows: At the time this transaction occurred and for several years prior thereto Powell was employed as agent for the Santa Fe Railroad Company at Hanford, California. He had been engaged in the railroad business practically all his life, and knew nothing of fruit raising or the productivity or fertility of soil. Anticipating retirement from the railroad service he concluded to buy and operate a small fruit ranch, and with that purpose in view, and accompanied by his wife and son, he visited the property in question, where he met Fred Sehutte, the superintendent of defendant’s properties, who lived upon or near the properties and was authorized by defendant to make sales thereof on a commission basis. All of the business connected with the sale of the property in question to Powell was transacted with Sehutte, who went over the property with Powell, and during the tour of inspection, made the representations set forth in the findings, upon which, Powell claims, he wholly relied in buying the property. In July, 1922, which was approximately a year *718 and a half after plaintiffs had taken possession, they observed that the fruit trees were dying, whereupon Powell, assisted by his son and certain soil experts, made an examination of the soil with an auger, with the result that, after the auger had passed through about twelve or fifteen inches of top soil, they struck hard-pan of solid clay formation. Before the end of the next month, August, 1922, there were 250 dead prune trees in that section of the orchard. In addition to the evidence mentioned testimony of a number of witnesses was offered tending to prove that the property was of little, if any, value as orchard land; that it was not adapted to the raising of fruit. Circumstances were also established from which it may be reasonably concluded that the value of the property was no more than the amount stated by the court in its findings.

With reference to the representations that the land was productive, free from hard-pan, and adapted to fruit raising, the circumstances of the present case are substantially the same as those of the case of Dickey v. Dunn, 80 Cal. App. 724 [252 Pac. 770], recently decided by this court, the land involved being a part of the identical tract, the sale thereof being negotiated by the same agent, and, regarding the issues of fraud, similar legal contentions were made. In ruling adversely upon these contentions the court said: “The evidence shows that the plaintiff who was by trade a watch maker, had no knowledge of the soil conditions and was without sufficient experience to determine the truth of the representations. Where a purchaser is justified in relying, and in fact does rely, upon false representations his right of action is not destroyed because means of knowledge were open to him (Teague v. Hall, 171 Cal. 668 [154 Pac. 851]), and while it appears that the plaintiff visited the property before the transfer was made, the evidence sufficiently supports the finding that he relied upon the representations both as to its value and character. The statements as to the character of the soil and as to the water supply . were clearly misrepresentations of facts (French v. Freeman, 191 Cal. 579 [217 Pac. 515]; Stone v. McCarty, 64 Cal. App. 158 [220 Pac. 690]). A statement as to value is not always made as a mere expression of opinion. It may be a positive affirmation of a fact, intended as such by the party making it, and reasonably regarded *719 as such by the party to whom it was made; and when it is such it is like any other representation of fact, and may be fraudulent representations warranting rescission (Crandall v. Parks, 152 Cal. 772 [93 Pac. 1018]). Where there is a doubt as to whether or not such representation was intended and understood as the expression of an opinion or a statement of fact the question is one for determination by the trial court (French v. Freeman, supra; Stockton v. Hind, 51 Cal. App. 131 [196 Pac.

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258 P. 636, 84 Cal. App. 714, 1927 Cal. App. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-oak-ridge-orchards-co-calctapp-1927.