Kelly v. Merritt
Kelly v. Merritt
Opinion of the Court
This action was brought to recover damages against the defendants on account of alleged false and fraudulent representations in the sale of an apartment house. Upon issues joined, the case was tried to the court and a jury, and resulted in a verdict and judgment in favor of the plaintiffs for $1,500. The defendants have appealed.
Since the case was tried to a jury and a verdict returned in favor of- the plaintiffs, we must assume, for the purpose of this appeal, that the facts as stated by the appellants are true. These facts are in substance as follows: In March, 1918, the respondents were desirous of purchasing a lease running from three to five years on an apartment house. They applied to the appellants, who were acting as real estate brokers in the city of Seattle, and were introduced to a Mr.' Arnold, who was then -in the employ of the appellants. Mr. Arnold showed the respondents several apartment houses which were not suitable. He also showed to the respondents an apartment house known as- the “Oleta.” He stated to the respondents .that this .apartment house had a short time lease, but that the' owner' of the house would make a new lease of from' three 'to five years at an advanced rental. The lease' in effect at that time expired in September, 1918, and-carried a- monthly rental of $350. Mr. Arnold stated that the owner had been seen and that -a three to five, year lease could be procured upon, this apartment ■ at about $500 per month after the expiration of the-short term lease. He advised respondents to take' ah assign-
At the time the respondents agreed to purchase the lease, Mr. Arnold, who represented the appellants, stated to them that he had seen the owner of the property and the owner had agreed to extend the lease from three to five years at an additional rental after the expiration of the lease then in force. “When requested by the respondents to see the owner and interview him, Mr. Arnold stated that they could see the . owner when the final papers were prepared. Thereafter Mr.. Merritt, one of the appellants, stated to the respondents, in substance, that he was an attorney at law and that he would see that their interests were protected if they desired him to do so. On March 20, respondents were told that Mr. Hyland was the owner of the premises and that he had consented to a renewal of the original lease from three to five years and that they would go to his office and the papers
“The undersigned, Ivan L. Hyland, purchaser at sheriff’s sale of the above described premises under mortgage foreclosure against Huldia E. Johnston, do hereby consent to the foregoing assignment.
“Dated this 23d day of March, 1918.
“Ivan L. Hyland.”
The respondents went into possession of the building, and at the expiration of the short term lease in October, 1918, were ousted by Mrs. Johnston, who had redeemed from the foreclosure and refused to extend the lease.
Under the facts testified- to by the respondents, as stated above, we are satisfied there was no duty on the part of the respondents to inquire further whether Mr. Hyland was actually owner of the property or whether he would consent to a renewal of the lease. According to the respondents’ testimony, the appellants had sent an attorney along with the respondents, and this attorney was supposed to look out for the
“Ordinary prudence does not require a person to test the truthfulnessof representations made to him*431 by another as of his own knowledge with the intent that they shall be believed and acted upon, even though the party to whom such representations are made may have an opportunity to ascertain the truth for himself.”
See, also, Eyers v. Burbank Co., 97 Wash. 220, 166 Pac. 656.
When these respondents were taken into the office of Mr. Hyland, they were informed that he was the owner of the. apartment house. They clearly had a right to rely upon that information. According to their testimony, an attorney to represent them was sent along by the appellants. There was no statement and nothing said to lead the respondents to understand that Mr. Hyland was not the absolute owner, authorized not only to consent to the assignment of the short term lease, but authorized also to make a renewal lease at the expiration of the short term lease. The respondents were told in Mr. Hyland’s office that he had consented to make a renewal lease. Mr. Hyland had made no such promise. We are of the opinion that the respondents had a right to rely upon representations made with reference to the renewal of the lease, and when they were dispossessed at the expiration of the short term lease, had a right to recover damages against the appellants, who were responsible for the false representations. The trial court, therefore, did not err in refusing to grant the nonsuit or in refusing to grant a judgment notwithstanding the verdict.
Appellants assign error upon the refusal of the court to give certain requested instructions. No argument is made thereon except to say that their refusal was error and that the same points are not covered by the court in his instructions. We have examined the instructions given by the court. They are full and
Appellants also argue that the court erred in refusing to strike the testimony of a witness who testified in substance that a lease upon an apartment house is worth fifteen months’ profit. The witness, if we understand him correctly, was attempting to testify that it would take fifteen months’ profit of the business of an apartment house to pay for the lease. This witness was an experienced real estate man engaged for many years in buying and selling leases on apartment houses in Seattle. We are of the opinion that his evidence was entitled to consideration upon the question of damages recoverable in a case of this kind. At any rate, it was evidence that the jury might reasonably consider in determining the amount of damages. The court very properly instructed the jury that the measure of the damage was the difference between the value of the apartment as it actually was and what it would have been if the. lease could have been procured for three years at $500 per month.
We find no merit in any assignments of error. The judgment is therefore affirmed.
Holcomb, C. J., Fullerton, Tolman, and Bridges, JJ., concur.
Reference
- Full Case Name
- Violet M. Kelly v. Will H. Merritt
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- Published