Messerall v. Rubin

WARNS, J. pro tem.* Plaintiffs brought this action for damages and for the rescission of a contract to exchange certain real and personal property. Plaintiffs in their complaint alleged that they were induced by fraud and false representation on the part of the defendant Rubin to enter into and consummate an exchange of business and rental property owned by them in Ventura County for Rubin’s ranch and certain personal property situate in Siskiyou County.

Plaintiffs recovered judgment rescinding the contract and awarding them damages and costs. The defendant Rubin appeals.

The ranch, together with the livestock and equipment thereon, was owned by Rubin and was at the time of the exchange estimated to be of the value of $140,000. Plaintiffs’ properties were estimated to be of equal value.

The trial court found, among other facts, that Rubin for the purpose of inducing the plaintiffs to enter into and consummate the exchange agreement falsely, knowingly and fraudulently represented to plaintiffs that the ranch could and would, within its confines, pasture and support on a year-round basis 500 head of cows and calves; that there were not less than 400 acres under cultivation, not less than 240 acres planted to irrigated pasture, and 12,000 acres of grazing land contiguous to Rubin’s property available for the exclusive use of plaintiffs; that there was a sufficient supply of water upon the lands to water at least 900 head of livestock; that the personal property to be exchanged by defendant Rubin was free and clear of liens and encumbrances and that said defendant would promptly furnish title to the plaintiffs, free and clear of all liens and encumbrances; that 450 ewes which were part of the consideration for the exchange of plaintiffs’ property were all capable of producing offspring, were of the highest quality, had been let to rams, and would produce at the proper season. There are findings of fact which support the damages awarded to the plaintiffs.

[500]Resolving all conflicts in favor of the prevailing parties (plaintiffs) and viewing the evidence in the light most favorable to them, as we must (O’Banion v. Borba, 32 Cal.2d 145, 147 [195 P.2d 10]), there is ample evidence in the record to sustain the trial court’s findings and the judgment.

The evidence shows that plaintiffs contacted the defendant Rubin on September 1, 1957; that the trade was made in December 1957; that during the negotiations for the exchange of the respective properties, plaintiff C. 0. Messerall spent five or six hours at Rubin's ranch touring the area and discussing with defendant Rubin the carrying capacity, the cultivated, irrigated and grazing acreages, the water supply and other matters pertaining to the ranch; that he casually inspected the sheep; and that he made limited inquiries of the farm adviser. The evidence also shows that for 12 years prior to the consummation of the contract for the exchange of the properties Mr. Messerall had been in the garage and implement business, but prior to that time he had been a “rancher by trade.”