Agnew v. Foell

MOORE, P. J.

Appellant is displeased with a judgment denying her relief in an action for damages resulting from respondents’ alleged misstatements which she asserts induced her to sell certain realty at less than its reasonable market value.

The property involved is on Ramage Street in West Hollywood. Appellant completed the purchase thereof early in 1943 for a total cash outlay of $5,000, assuming a mortgage of $2,500. At that time she had known Messrs. Foell and Ralston about six years. The former was a licensed real estate broker; the latter was manager of a branch bank in Hollywood

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where for some years appellant had done her banking. After a long and protracted discussion of the sale of the property, on her own volition she finally on July 22, 1943, decided to list it with Foell for sale at $12,000. On receipt of her letter he replied that it would be “well sold if we could get $12,000.” A sale was made on August 14, 1943, and an escrow was opened with another branch of the same bank. It was promptly advertised by the buyer who resold it for $13,500. Appellant at once concluded that she had been swindled and sought the advice of Ralston as to whether she could get released from the transaction. She testified that he advised her she would have to complete the sale; that if she tried to withdraw she would be sued. However, she had already signed amended escrow instructions and the sale was on its way to final consummation.

Appellant deems herself aggrieved, claiming that (1) Mr. Foell was her confidential agent, (2) he and Mrs. Foell told her the value of income-bearing real estate is ascertained by multiplying the gross income by “four and not over five”; (3) they had full knowledge of the properties on Ramage Street and the fair market value for her place was $12,000; (4) it could not be sold for more than that sum and it would be for her best interest to sell for $12,000. She made similar charges against Ralston who, she claims, was subservient to Foell for the purpose of gaining the latter’s assistance in selling certain properties. Other alleged misrepresentations attributed to Ralston are: (1) it would be to appellant’s best interest to give Mr. Foell an exclusive agency to sell at $12,000; (2) income from a trust deed at 6 per cent would be better than ownership of the realty.