Schulte v. Westborough, Inc.

180 P.2d 278, 163 Kan. 111, 172 A.L.R. 259, 1947 Kan. LEXIS 234
CourtSupreme Court of Kansas
DecidedMay 3, 1947
DocketNo. 36,857; No. 36,858
StatusPublished
Cited by21 cases

This text of 180 P.2d 278 (Schulte v. Westborough, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schulte v. Westborough, Inc., 180 P.2d 278, 163 Kan. 111, 172 A.L.R. 259, 1947 Kan. LEXIS 234 (kan 1947).

Opinion

The opinion of the court was delivered by

Wedell, J.

These were two actions to recover damages on the theory plaintiffs were defrauded in the purchase of a dwelling house. The legal issue in the cases is identical. They were consolidated in the district court for the purpose of presenting demurrers to the respective petitions and are consolidated on appeal. The ruling on the demurrers in case No. 36,857, Schulte v. Westborough, Inc., et al., will control the ruling in case No. 36,858, Dennon v. Westborough, Inc., et al. The defendants Westborough, Inc., and The Rock Island Lumber Company appeal from orders overruling their demurrers to plaintiffs’ amended petition.

Appellees seek to have the appeals dismissed on technical grounds. We have concluded the request should be denied but shall briefly treat the point later.

The action was brought by appellees, purchasers of real estate, against a party named in the contract of purchase as the owner, a number of other appellants alleged to have been engaged in a joint enterprise with the owner, and with each other, in developing, building and selling the property and against a party claimed to have sold the property as the agent of all appellants. Only the alleged false and fraudulent representations pertaining to the basement floor of the dwelling are involved. They were:

“That in truth and in fact said representations were false in the following respects: That whereas the Federal Housing Administration specifications for the building of the basement floor in said dwelling house required a basement floor of four inches in thickness of concrete over the entire basement, the actual thickness of the basement floor of concrete of said dwelling house was as thin as from two and one-eighth (2%) inches to two and one-fourth (2%) inches [113]*113and was defective thereby and by reason thereof . . . the surface waters caused by the heavy rains of about April 24, 1944, did break and crack the basement floor of said dwelling house and admitted flood waters which have damaged said plaintiffs. . . .”

The fraudulent representations were alleged to have been made at the time the property was purchased February 9, 1942. The action was not filed until April 9, 1946. It will be observed the damage to the floor was alleged to have occurred April 24, 1944. Summons was served on all defendants by April 10, 1946, which was less than two years after the date of the damage. The answer day designated in the summons was May 9, 1946, which was more than two years after the date of the damage. The demurrers to the original petition were filed in time but more than two years after the date of the damage. Appellants filed a general demurrer and also demurred for the reason the petition disclosed on its face the cause of action was barred by the statute of limitations. On September 11, 1946, more than two years after the damage, appellees filed an amended petition alleging for the first time that “the said false and fraudulent representations were not discovered by plaintiffs until on or about the 24th day of April, 1944.” Appellants lodged the s|pe demurrers to the amended petition previously leveled against the original petition. The trial court ruled the neA’ allegation in the . amended petition was too late and would not be considered. From that adverse ruling against appellees they have not appealed although they might have done so under the provisions of our cross-appeal statute. (G. S. 1945 Supp., 60-3314; Walker v. S. H. Kress & Co., 147 Kan. 48, 75 P. 2d 820; Rusch v. Phillips Petroleum Co., ante, p. 11, this day decided.)

The trial court interpreted the amended petition, without the amendment, as disclosing the fraud was discovered April 24, 1944, and overruled the demurrers. From that ruling the appeal is taken.

An action for relief on the ground of fraud musí be commenced within two years from the time the cause of action accrues but such cause of action is not deemed to have accrued until the discovery of the fraud. (G. S. 1935, 60-306, Third.) Appellees cite cases in which it has been said that if the original petition, although informally and defectively, states facts wvhich aided by reasonable inference constitute a cause of action, an amendment only amplifying or making more specific the allegations in the petition will relate back to the beginning of the action. (Fox v. Turner, 85 Kan. 146, 116 Pac. [114]*114233; Ballard v. Railway Co., 95 Kan. 343, 148 Pac. 764; Kerr v. Carson, 133 Kan. 289, 299 Pac. 929, and other similar cases.) Assuming, without deciding, the amendment in the instant case had only that effect and should have been allowed, the fact remains the trial court refused to consider the amendment on the ground it was too late. Since appellees have not cross-appealed from that adverse ruling, the only order here for review is the order overruling appellants’ demurrers to the amended petition, absent the amendment.

The original petition, as previously stated, was not filed 'until four years after the fraudulent representations were alleged to have been made. In order to toll the statute of limitations it was, therefore, necessary to allege facts which clearly disclosed the fraud was first discovered at a time which was less than two years before the commencement of the action.. That fact could not be left open to conjecture. (Young v. Whittenhall, 15 Kan. 579; Doyle v. Doyle, 33 Kan. 721, 7 Pac. 615; Myers v. Center, 47 Kan. 324, 27 Pac. 978; McCalla v. Daugherty, 4 Kan. App. 410, 46 Pac. 30; Orozem v. McNeill, 103 Kan. 694, 176 Pac. 106; Manka v. Martin Metal Mfg. Co., 153 Kan. 811, 817, 113 P. 2d 1041.) Unless the petition clearly diclosed that fact no cause of action was stated. It was equivalent to no petition. (Cunningham v. Patterson, 89 Kan. 684, 685, 132 Pac. 198; Kerr v. Carson, 133 Kan. 289, 290, 299 Pac. 929; Bortko v. Polish National Alliance, 154 Kan. 533, 119 P. 2d 536; Waddell v. Woods, 160 Kan. 481, 163 P. 2d 438.)

Beginning with the early case of Young v. Whittenhall, supra, we adopted and have followed the view of the Supreme Court of California, that the discovery portion of our fraud statute is in the nature of an exception to the general rule in fraud cases and that in order to obtain relief under the exception it is necessary for a pleader to clearly bring himself within the exception. We shall not burden the opinion with numerous quotations from the cases previously cited and from others which might be added. For example, however, in Orozem v. McNeill, supra, it was said:

“An argument is made to the effect that the petition'should be interpreted as showing that the plaintiff did not at once learn of the falseness of the representations made to her. If she claimed that she did not learn the real facts until within two years before the commencement of the action, she could have set the matter at rest by so alleging. The case cited in the original opinion (Young v. Whittenhall, 15 Kan. 579) is decisive oí the proposition that such an allegation is necessary(p. 697.) (Italics burs.)

[115]*115The instant petition failed to so allege. We are convinced the established doctrine is a wholesome one and especially so with respect to the time element in actions founded on fraud. There was a time when the defense of the statute of limitations was.

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Cite This Page — Counsel Stack

Bluebook (online)
180 P.2d 278, 163 Kan. 111, 172 A.L.R. 259, 1947 Kan. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schulte-v-westborough-inc-kan-1947.