Kleist v. Priem
Kleist v. Priem
Opinion of the Court
Plaintiffs, husband and wife, brought this action against defendants, husband and wife, to recover damages alleged to have been sustained by the former in the sum of $11,360 as the result of an exchange of real properties by and between said parties induced by false and fraudulent representations made by defendant B. E. Priem, acting for himself and his said wife. The wives of the parties were made parties solely because of respective marital relations. This being so, reference will be made only to the principals.
The property parted with by plaintiff is situated in Douglas County, Oregon, and will be referred to as the Oregon property, while the property received by him from defendant, consisting of several lots, parcels, and tracts of land situate in the counties of San Francisco, Alameda, San Mateo, Contra Costa, and Napa, in this state, will be referred to as the California properties.
The gravamen of the action is to be found in the allegations of the amended complaint charging false and fraudulent representations made by defendant as to the values of the several lots or tracts of the California properties, the state of improvements thereon and subsisting liens standing against the same.
Defendant denied specifically all of the material allegations of the amended complaint and, in turn, by cross-complaint, charged plaintiff with falsely and fraudulently misrepresenting the value of the Oregon property to his damage in the sum of $11,000. At the close of plaintiff’s case the court granted defendant’s motion for nonsuit, and judgment was accordingly entered. Plaintiff appealed from said judgment and from an order denying his motion for a new trial.
A statement of the facts essential for an understanding of the orders appealed from, and the court’s decision, may be thus briefly made: Plaintiff was at the time of said exchange and for several years prior thereto had been a resident and owner of farm and orchard lands situate eight miles from the nearest town or village in Douglas County, Oregon, and engaged in conducting the same. His property consisted of seventy-five acres, fifty of which were planted to bearing fruit trees. The remaining twenty-five acres were used chiefly for growing grains. The improvements and equipment were modern and fully ample for the purposes *35 to which the land was devoted. The uneontradicted evidence is that the Oregon property, on the day of the exchange, was of the value of $18,000, but carried an encumbrance of $1,500.
Plaintiff and his wife had grown anxious to become residents of California, preferably San Francisco. It seems that the husband had fallen into conversation with one B. J. Sanford, “a neighbor,” whom he describes as having known for a- period of about one week. Sanford, having thus been made aware of plaintiff’s desires, represented that he was a real estate operator of thirty-five years’ activity and volunteered to go to San Francisco and obtain for him a “good trade.” This occurred during the latter days of September, 1917. Plaintiff furnished Sanford with a list of his property, together with photographic views, and the latter very shortly thereafter arrived in San Francisco and very promptly wrote to plaintiff that he had procured a good trade and advised him to make the exchange. The evidence indicated that upon arriving in San Francisco Sanford went direct to the offices of defendant B. B. Priem, who then had offices in the Phelan building. "Whether a prior acquaintance existed between the two does not appear.
On October 1, 1917, Sanford wrote a letter to plaintiff from San Francisco in which he inclosed a list of properties made out and offered by defendant Priem in exchange for his Oregon property. The list described in a general way several lots or “tracts” of land.
Closely folio wing, the Sanford letter, defendant Priem forwarded a second list to plaintiff. Sanford hurried back to Oregon and advised plaintiff to make the trade. At this juncture Sanford withdrew from the transaction as mysteriously as he had entered it. Plaintiff at once came to San Francisco. It was his first trip to this state and, consequently, he was a stranger. He went to Priem’s office, was entertained by him, and received his close personal attention throughout his stay. He seems to have had no independent advice or to have conversed or advised with anyone but defendant. He was hurriedly shown the several pieces of property afterward passed to Mm by the exchange, except the Napa City and Matthews lots, which he did not see. His visit to or examination of any one of said lots or tracts of land did not exceed five minutes and in some in *36 stances not more than one minute. The properties were quite widely separated, being in four counties. At the expiration of the third day of his visit plaintiff informed defendant that he had concluded not to make an exchange of properties and announced his intention of starting for his home. Defendant insisted on accompanying him, and did accompany him, to Oregon, stating that he wanted to see his “ranch anyway,’’ and also the country. After three or four days of negotiations at the Oregon ranch, defendant revised his property list by adding two Berkeley lots, and represented by positive statements that the properties listed, exclusive of said two Berkeley lots, were worth $18,000, and that said two lots were worth $2,500, less an $800 mortgage. This was sufficient to induce plaintiff, who had been theretofore in an uncertain frame of mind, to execute, on October 23, 1917, the contract of exchange. An exchange of deeds soon followed, both sides executing warranty deeds.
Upon what theory evidence of this character was excluded under the issues as framed does not clearly appear. Possibly it was excluded on the theory that plaintiff had full or equal opportunity with defendant to investigate for himself or that the representations as made were mere expressions of opinion rather than the affirmation of facts. Under *37 the facts and circumstances as disclosed hy the record of the case, these questions were matters of fact to be determined by the jury and not mere questions of law for decision by the court. The cross-examination of plaintiff on the subject of values seems to have been made on the theory that it afforded an opportunity of impeachment by a comparison of the allegations of the original complaint with the allegations of the amended complaint. Whatever the purpose may have been, the evidence was elicited, and under the rules governing motions for nonsuits it must be given its full probative effect. The cross-examination showed the actual values to be far below the values as represented.
It was the evidence that plaintiff had been a farmer practically the whole of his life, had had no previous real estate knowledge or business training and was wholly ignorant of California conditions and values, and therefore relied solely upon defendant’s statements of values. In fact, he had never seen the Napa City property. Defendant, on the other hand, was the owner of lands situate in several counties of the state, occupying a business office, and, doubtless, was well informed as to realty values. A fair inference from the facts stated would be that he was a real estate broker. His assertion, rather boastfully, was that he did not need an attorney to transact business for him.
It was while in Oregon, several hundreds of miles removed from the
situs
of the California properties, that plaintiff was induced to make the exchange. Whether plaintiff, judged from the circumstances of the situation, had reasonable means of investigating the question of values for himself and whether he relied upon the statements of value made by • defendant, were questions of fact that should have been submitted to the jury. There was no such acquaintance with, examination, or tests made by plaintiff of the properties received in exchange as is found in the eases cited by defendant.
It appears that the Burlingame property, which was warranted to be “free and clear of all encumbrances,” was subject to a lien for street improvement work in the sum of $110, which had not been wholly paid at the day of the trial. The Behrens tract was warranted by the agreement of exchange to be “free and clear of all encumbrances.” It subsequently developed that Mrs. J. M. Hamill held a contract for the purchase of said tract. As a part of the original agreement, defendant covenanted to clear the title either by obtaining á quitclaim deed from Mrs. Hamill or by the institution of an action to quiet title thereto. Neither was done. As an answer to plaintiff’s complaint for failure to comply with said covenant defendant at the trial of the case presented to plaintiff for the first time a quitclaim deed executed by Mrs. Hamill long after suit had been commenced asking damages be *39 cause of such failure. Surely, defendant should not be permitted to profit by such methods.
The Cortland Avenue lot, the most valuable of the listed properties, was shown to be materially less in area than it was represented to be. It was described as “seventy-five feet on Cortland Avenue.” Its full dimensions were at no time given, not even in the deed. As a matter of fact, it was of “flat-iron” shape, seventy-five feet on Cortland Avenue, and tapered down to a width of forty-seven feet at the rear. It was the testimony of plaintiff that this lot was represented to be seventy-five by seventy feet. Strange as it may appear, the complaint contains no allegation of damage because of such misrepresentation. The dimensions of the lot were admissable, however, as affecting value. The treatment of this lot throughout the transaction, whenever reference was made to it, was such as to leave room for an unwary person to be misled as to its actual size.
The case of Harding v. Robinson, 175 Cal. 534, [166 Pac. 808], relied upon by defendant, is not in conflict with *40 the rule that has always obtained in this state. It simply reaffirms the familiar rule that the terms of a written contract cannot be varied by parol evidence. By an agreement in writing, as stated in said eas'e, the vendor sold a tract of land by metes and bounds with no reference to acreage. Inasmuch as the contract described it as a sale in gross, parol evidence was not admissible to show that false representations were made as to its acreage. This principle of law has no application to the instant case. No attempt is made to vary the terms of a written agreement. The inquiry here is as to the means employed in procuring the execution of an instrument faultless on its face.
Not only the two lists sent to plaintiff from San Francisco, the second of which contained a brief description of each separate parcel of land offered and containing the words, “My price” (naming a stated sum), or statements as to its cost to defendant, or amounts expended by him for improvements, or prices which near-by lots had brought, were admissible in evidence, but also the oral representations made to plaintiff in Oregon to the effect that the property offered by him was of the value of $18,000. The acts and conduct of the parties are also important.
Applying the foregoing rules to the evidence, we think the judgment of nonsuit was erroneous. It was also error to exclude evidence as to the values of the properties passed by the deeds of exchange. The discussion of the evidence in this decision must be considered solely in reference to a motion for nonsuit.
In conclusion, it may be stated that the amended complaint is faulty both in substance and in form. The allegations as to value are weak and indirect, and those in reference to damages are somewhat vague and incomplete.
The judgment and order appealed from are reversed.
Richards, J., and Kerrigan, J., concurred.
Reference
- Full Case Name
- JOHN H. KLEIST Et Al., Appellants, v. B. E. PRIEM Et Al., Respondents
- Cited By
- 6 cases
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- Published