Clancy v. Becker-Arbuckle-Wright Corp.

SPENCE, J.

Plaintiff brought this action for the rescission of a contract to purchase real property and to recover the sum of $2,052.50 which had been paid under the terms thereof. Defendants’ motions for nonsuit were granted and from the judgments' of nonsuit plaintiff appeals.

Defendant Title Guarantee and Trust Company, hereinafter referred to as the owner, was the owner with which plaintiff entered into the written contract to purchase the land. Defendant Becker-Arbuckle-Wright Corporation, hereinafter referred to as the selling agent, was the broker or selling agent in charge of the sale of the entire tract of which the lot in question was a part. Defendant Commerce Casualty Company, hereinafter referred to as the surety, was the surety on the bond of the broker or selling agent filed pursuant to law with the real estate commissioner.

In January, 1930, plaintiff answered an advertisement and shortly thereafter accepted employment as a saleswoman for the selling agent on the tract in question. Said tract was known as the Toluca Lake tract and was located in the city of Los Angeles. About one month later plaintiff signed a contract dated February 15, 1930, for the purchase of the westerly half of lot number 11 in said tract. She continued in her said employment for five or six months thereafter. In February, 1932, being about two years after entering into said contract, she gave notice of rescission thereof and subsequently brought this action.

The complaint wras entitled “Complaint for Rescission”. It contained two counts. The first count purported to allege fraud and the second count purported to allege undue influence. The ground of undue influence was apparently abandoned by plaintiff on the trial and is not urged on this appeal. The alleged rescission upon which plaintiff based

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her claim of fraud may be summarized as follows: That defendants could and would resell her lot. at. a profit and could and would double her money on the same; that defendants would install certain improvements on said tract without, expense to plaintiff; that defendants would build bungalows, .apartments and residences on said tract of the best type and quality and thereby enhance the value of plaintiff’s lot; that the traffic plan commonly known as the “Five Finger Plan” would be installed at once by the city of Los Angeles connecting with said tract; that defendants had “inside information” on these traffic developments; that defendants “were making arrangements” whereby Riverside Drive would soon be a “Second Wilshire Boulevard” and trolley service and bus lines would soon be installed; that “within a short time Boeing Air Port would employ hundreds of persons who would live on and near said tract” and that other industries “would soon greatly enlarge their plants in that vicinity”; that defendants “were selling plaintiff a $4200.00 lot for $4000.00”. It was further alleged that said representations were false and fraudulent and that defendants’ promises regarding reselling her lot, and so forth, were made without any intention of performing them. The complaint also contained allegations relating to the execution and filing of the bond by the surety and to the terms of said bond. The prayer asked that the contract be declared rescinded and further asked for judgment for the amount paid by plaintiff, together with interest.