Dunn v. Security-First National Bank

[543]

THE COURT.

The action herein is one to rescind two contracts for the purchase of two lots from the defendant Security-First National Bank of Los Angeles, as trustee, and to recover from the defendants Flint, Jackstadt and others, as beneficiaries under the trust, the amounts paid by plaintiffs on said contracts, upon the ground that the defendants last named and their agents induced plaintiffs to purchase said lots by means of false and fraudulent representations. The trial court found in favor of plaintiffs on all issues, except the amount claimed to be due; and judgment was entered accordingly for the repayment to plaintiffs of the sum of $1966.30, interest and costs. From such judgments the defendants Flint and Jackstadt prosecute this appeal.

The lots were part of a subdivision situate near Point Fermín, Los Angeles County, and sales were being promoted through selling agents and lectures delivered in a tent near the subdivision. The respondents, Mrs. Dunn and Miss Marshall, formerly resided in Mississippi. They were in moderate financial circumstances and inexperienced in business. They arrived in Long Beach on June 10, 1927, and took accommodations at an apartment house. Within a few days after their arrival they met some of the selling agents of appellants’ subdivision, who were staying at the same apartment house, and said agents sought immediately to interest respondents in the purchase of some of the lots. After several interviews and during the latter part of the same month Mrs. Dunn was given employment by said agents to solicit prospective buyers to visit the subdivision and hear the addresses which were being delivered in the tent as to the future prospects of the property; and soon thereafter respondents were induced to enter into contracts for the purchase of two lots, one contract being executed on July 1, 1927, and the other on July 12, 1927. Among the representations made to them, and which the court found were false and fraudulent, were that the entire block immediately across the street from the lots which respondents were induced to purchase had already been sold, and the full purchase price paid therefor; that a hotel building was going to be built thereon in the near future; that the plans had been drawn, the financing had been completed and the

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