Sacramento Suburban Fruit Lands Co. v. McKew

36 F.2d 917, 1929 U.S. App. LEXIS 2285
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 17, 1929
DocketNo. 5656
StatusPublished

This text of 36 F.2d 917 (Sacramento Suburban Fruit Lands Co. v. McKew) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sacramento Suburban Fruit Lands Co. v. McKew, 36 F.2d 917, 1929 U.S. App. LEXIS 2285 (9th Cir. 1929).

Opinion

DIETRICH, Circuit Judge.

This is one of-a group of cases submitted together here in which the plaintiffs recovered judgments for alleged fraudulent representations made by appellant to induce them severally to purchase divers tracts of land in the Rio Linda district or project near Sacramento, Cal. In its background and some of its aspects the case is very similar to that of Sacramento Suburban Fruit Lands Co. v. Melin (No. 5671, decision, filed Dec. 17, 1929) 36 F.(2d) 907. Below there was a judgment on the verdict .against the defendant company, from which it prosecutes this appeal. It assigns twelve errors, some of which are ruled by the Melin Case, and some, for want of appropriate exceptions, we cannot consider. We deem it necessary .to1 discuss but two, both of which involve the charge to the jury.

Plaintiffs are husband and wife, and, at the time they entered into the contract to purchase one of the small tracts from defendant, they resided at Winnipeg, Canada. In their complaint they alleged that defendant, knowing of their ignorance of lands in California, and their value, and that they (plaintiffs) would be compelled to rely upon representations made to them, “falsely and fraudulently and with intent to cheat and defraud plaintiffs stated and represented to plaintiffs that all of the Sacramento County lands being sold by defendants were of the fair and reásonable market value of $350.00 per acre and upwards and that all of said lands and particularly the lands subsequently purchased by plaintiffs were rich and fertile, were capable of producing all sorts of farm crops and products; that ail of the land thereof was entirely free from all conditions and things injurious or harmful to the growth of fruit-trees; that said land was perfectly adapted to the raising of fruits of ail kinds and was capable of producing large crops of fruit of the finest quality.”

From their testimony it appears that, in some way coming into contact with them, Walter R. Eggertson, one of the defendant’s selling agents, who was promoting the project in Winnipeg, had conversations with them, and furnished to them printed literature put out by the defendant, with the result that they signed a contract for the purchase of one of the tracts and paid a part of the agreed price. Later they came to Sacramento, went over the project, and ultimately selected a tract other than the one originally described, paid the balance of the agreed purchase price, and took a deed.

It will be observed that, generally speaking, the allegation of fraud covers two subjects, one of the “fair and reasonable market value” of the land and the other of its availability or suitability for agricultural purposes and particularly for the raising of deciduous fruits. With only the former are we presently concerned. To some extent in the Melin Case we discussed the question of whether a representation touching the value of land may constitute the basis of an action for fraud. The two eases are measurably different in point of fact. The plaintiffs here had had no experience in farming or fruit raising, knew nothing about California lands generally, or these lands particularly, before they visited California, and hence while in Canada they were without available means of information. It may well be, therefore, if the averments of their complaint which fully disclose these and other conditions are true, their charge of misrepresentation touching value states a case of actionable fraud.

When we resort to the testimony, however, we find the evidence upon the subject fails to measure up to the charge. Mr.' MeKew did not testify that any representation touching value was made in Canada. After he and his wife came to Sacramento and expressed dissatisfaction with the tract described in their contract, they were given the privilege of another choice, and they selected lot 44. In respect to this Mr. McKew testified : “Subsequently we took Lot No. 44, the north eight acres. He (not Eggertson but another agent who went about with them) said it was valued at $400 an acre. That is what we paid for it.” That is his only testimony on the subject. Referring to conversations with the agent, Eggertson, in Winnipeg, Mrs. McKew’s only testimony on the point was: “As to the value of the land, he said it was $350 an acre up, and was advancing in price all the time, and we would have to hurry or else all the choice locations would be taken.” While the consideration is not of vital importance, we are inclined to think that the testimony of both witnesses means nothing more than that the agents [919]*919thus gave them the prices or values at which the company was offering the land for sale.

Eggertson’s deposition was introduced in evidence by defendant. Presumably it was taken before the trial and before either the defendant or he could know just what the plaintiffs’ testimony would be; and it is to be assumed that in interrogating him counsel for the company used as a basis for his questions the averments of the complaint. He testified: “I did not tell Mr. McKew at any time that all of the Sacramento County lands being sold by the Sacramento Suburban Fruit Lands Company were of the fair and reasonable market value of three hundred and fifty dollars per acre. Concerning the price of the land I referred him to our price list. I did discuss with him the question of whether or not other lands in the vicinity of Rio Linda could be purchased at a greater or less price than three hundred fifty dollars per acre. The question of market value was not discussed between me and Mr. McKew at all."

We find no other evidence upon the subject, but in its instructions to the jury the court said:

“Now, as to the representation as to value: Both plaintiffs testified that the agent, Eggertson, represented to them that the land was worth $400 an acre, that its value was worth $400 an acre. Eggertson, in his deposition, denies' it. There is a clear conflict in the evidence. It yviH be for you to determine who you will believe, the plaintiffs, who say that Eggertson did advise them the land was of the value of $400 an acre, or Eggertson, who says that he did not say that. You may ask yourselves which is more reasonable. It was selling the land to them for $400 an acre. Is it unreasonable that an agent should then say, ‘Not only am I selling it to you for $400 an acre, but its value is that much.’ You are supposed, Gentlemen, .in a bargain, to give value for value, and if he was getting $400 an acre from plaintiffs, is it unlikely that he told them, as they said he did, that its value was $400 an acre?
“Now, Gentlemen of the Jury, as matter of law, if the land was represented to these plaintiffs as of the value of $400 an acre, in the circumstances, that was not an expression of opinion, but is a statement of fact, and if it is false then the two would be sufficient to entitle the plaintiffs, if the other conditions are satisfied, to recover in this action.”

The better view, we think, is that there is no necessary conflict in the testimony and that the plaintiffs testified only that the agents advised them of the price for which the company would sell. But, if possibly it is susceptible to a different construction, the question was one for the jury and not for the court.

Aside from that consideration, we think the last part of the instruction was erroneous.

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Bluebook (online)
36 F.2d 917, 1929 U.S. App. LEXIS 2285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sacramento-suburban-fruit-lands-co-v-mckew-ca9-1929.