Warne v. Finseth

195 N.W. 573, 50 N.D. 347, 1923 N.D. LEXIS 99
CourtNorth Dakota Supreme Court
DecidedOctober 26, 1923
StatusPublished
Cited by9 cases

This text of 195 N.W. 573 (Warne v. Finseth) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warne v. Finseth, 195 N.W. 573, 50 N.D. 347, 1923 N.D. LEXIS 99 (N.D. 1923).

Opinion

Christianson, J.

Tliis is an action for fraud and deceit. In liis complaint the plaintiff alleges that on or about December 17th, 1918, he entered into a written contract with the defendant, by the terms of which the plaintiff agreed to purchase from the defendant a certain one hundred and sixty acre tract of land in Burleigh county in this state, and to pay therefor the sum of $4,000; that the plaintiff paid to the defendant under said contract, as and for the purchase price of said laud, sums aggregating $896.34, paid taxes in the sum of $61.94, and expended the sum of $323.85 in making necessary improvements on the land. The plaintiff further alleges that he was induced to enter into said contract of purchase by reason of certain false and fraudulent representations made to him by the defendant; that among other things, the defendant represented to the plaintiff that the land was free from stone, and could all be cultivated; that said representation was false, and known to the defendant so to be at the time it was -made; that in truth and in fact the land was not free from stone, but was thickly covered with stone and could not be cultivated. Plaintiff demanded judgment for the aggregate of the sums paid to the defendant, and expended for taxes and improvements.

The answer admits that the plaintiff and defendant entered into the contract for the purchase and sale of the land described in the complaint; also that the plaintiff made the payments alleged in the complaint. The answer, however, denies. that the defendant made any false or fraudulent representations, whatsoever. The answer further alleges that the contract was cancelled by the defendant, on November 25th, 1921, on account of the failure of the plaintiff to make the payments stipulated in the contract. The case was tried to the jury upon the issues framed by the complaint and the answer. The jury returned a verdict in favor of the plaintiff for $800. Judgment was entered pursuant to the verdict. Thereafter defendant moved for judgment, notwithstanding the verdict or for a new trial. The motion was denied [352]*352aud lie lias appealed from the judgment aud from the order denying his motion for judgment notwithstanding the verdict or for a new trial.

The principal questions raised by the defendant on this appeal relate to aud involve a consideration of the sufficiency of the evidence to sustain the verdict.

The evidence adduced by the plaintiff is to the effect that on or about December 17th, 1918; he accompanied the defendant to the land in controversy; that they traveled in an automobile furnished or driven by tlae defendant; that they examined the buildings on the land. The plaintiff further testified that it was a foggy day; that the car was enclosed — that is, that the top and side curtains were up; that the ground was covered with two or three inches of snow; that he observed a small pile of scattered stones “along-side” the highway running on one side of the land; that he thereupon inquired whether the land was stony and that the defendant assured him that the land was free from stone. On that same afternoon after returning to town the contract of purchase was executed and the plaintiff paid defendant $50 on the purchase price. Shortly thereafter the plaintiff returned to his home in Canada. It appears that on December 29th, 1918, the plaintiff wrote to the defendant suggesting that a payment of $750 (which the contract stipulated should he paid on or before January 15th, 1919) be deferred and an extension granted until plaintiff arrived in the spring- so that he could examine the land. This letter is not in the record. The reply written by the defendant, however, is in the record. This bears date January 2d, 1919. In this letter the defendant insists that payment be made according to the terms of tbe contract. Thereafter the plaintiff remitted $750 to the defendant. Plaintiff arrived from Canada some time in February 1919. According to his testimony he shortly thereafter discovered that the land was very stony and that lie at once made complaint to the defendant. And it appears that certain discussion was had with respect to the plaintiff taking-some other tract of land in place of the land involved in this suit, but that nothing came of such proposed arrangement. The evidence adduced by the plaintiff further shows that in addition to the two payments of $50 and $750 respectively, he later made one payment of $96.34 and also paid taxes in the amount of $61.94 and expended certain sums in making repairs of the buildings on the land. The [353]*353defendant also testified. He denied that he made the representations claimed by the plaintiff. He further denied that the plaintiff ever made any complaint- of the quality or character of the land or ever claimed that the alleged representations had been made. lie further testified that when they drove over and onto the land on December iTtli, 191S, that the stony character of the land was clearly visible, and hence that the plaintiff well knew that the land was stony at the time he purchased it. ’

Defendant contends that inasmuch as plaintiff went upon the land and examined, or had an opportunity to examine, it before making the purchase that he is not in position to claim that he was misled by flic representations as to the character of the land. In our opinion the contention is without merit. The plaintiff testified positively that he did not know that the land was stony; that while he was on the land it was covered with snow so that he could not see the stones; that he relied on the representations of the defendant that the land was free from stone and could be cultivated, and that he would not have purchased it at all if he had known the stony character of the land. If the jury believed plaintiff’s story, there can, we think, be no doubt but that they were entirely justified in finding that the plaintiff was induced to purchase, and did purchase, the land in reliance upon the representations made by the defendant; that he paid the $800 to the defendant in the belief that such representations were true; that the representations so made were untrue, and that plaintiff was damaged as a result of his reliance thereon.

“Ordinarily, one who buys properly has a right implicitly to rely upon representations of the seller; and, if they were false and made with intent to deceive the purchaser, the seller will not he allowed to urge that the buyer, by investigation, could have discovered their falsity.” Fargo Gas & Coke Co. v. Fargo Gas & E. Co. 4 N. D. 219, 37 L.R.A. 593, 59 N. W. 1066; Guild v. More, 32 N. D. 432, 155 N. W. 44.

Defendant further contends that the plaintiff, by entering into possession of the land in the spring of 1919, and remaining in possession thereof after discovery of the alleged misrepresentations and subsequently paying taxes and, also, interest on tbe purchase price, ratified and affirmed tbe transaction and thereby waived all right to recover [354]*354damages for the alleged misrepresentations made at and prior to the time, of the execution of the contract.

Those various contentions are, we believe, wholly without merit. “A cause of action in deceit accrues immediately upon the successful consummation of the fraud, provided the fraud results in injury to the plaintiff. 20 Cyc. 90. He is not required either to complete or perform the contract (20 Cyc. 92), or tender a return of the property received under' the contract, but is entitled to retain what he received, and sue for the damages caused by the fraud. 20 Cyc. 91.

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Bluebook (online)
195 N.W. 573, 50 N.D. 347, 1923 N.D. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warne-v-finseth-nd-1923.