Corder v. Laws

• Decision Date: 06 November 1961
• Docket Number: No. 19543,19543
• Citation: 148 Colo. 310,366 P.2d 369
• Parties: Lee CORDER, Plaintiff in Error, v. William C. LAWS, Lida Z. Laws, Robert R. Laws and John F. Pierce, as Administrator of the Estate of Florence Laws Pierce, Deceased, Defendants in Error.
• Court: Colorado Supreme Court

Page 369

366 P.2d 369

148 Colo. 310

Lee CORDER, Plaintiff in Error, v. William C. LAWS, Lida Z. Laws, Robert R. Laws and John F Pierce, as Administrator of the Estate of Florence Laws Pierce, Deceased, Defendants in Error.

No. 19543.

Supreme Court of Colorado, En Banc.

Nov. 6, 1961.

Rehearing Denied Dec. 4, 1961.

Bentley M. McMullin, Aurora, Albert H. Jewell, Denver, for plaintiff in error.

Fred L. Schwartz, Robert Meer, Denver, for defendants in error.

McWILLIAMS, Justice.

On or about December 30, 1957, William C. Laws, acting for himself and also for Lida Z. Laws, Robert R. Laws and Florence Laws Pierce, purchased from Lee Corder commercial property situate on South Broadway in Englewood, the purchase price for the property being $46,000. The present controversy stems from the events leading up to this transfer of real property.

The Laws subsequently brought an action against Corder charging him with fraud and deceit which allegedly induced them to purchase the subject property to their resultant damage. Corder admitted the sale of the property, but denied that he had in any way deceived the Laws.

Upon trial to a jury the trial court at the conclusion of all the evidence, after appropriate motion, directed the jury to return a verdict in favor of the Laws and submitted to the jury for its determination the one issue of damages. The jury assessed the damages in the amount of $5,200. By writ of error Corder here seeks reversal of the judgment entered on this verdict.

In his motion for a new trial, Corder suggests that the trial court committed error in some forth different ways, which may conveniently be grouped as follows: the trial court (1) erred in directing a verdict for the Laws; (2) erroneously instructed the jury on the measure of damages; and (3) erroneously excluded evidence sought to be introduced by Corder, and erroneously admitted evidence offered by the Laws.

The evidence adduced upon trial was not in conflict as to the material facts. In October, 1957, Corder determined to sell the property which is the subject of this litigation and he deputized one DeCamp to be his agent in the transaction. DeCamp in a comparatively short time succeeded in interesting the Laws in the property, which interest eventually ripened into their purchase of the property on December 30, 1957 for $46,000.

It is undisputed that Corder told DeCamp that the entire property was then under lease, and that the total monthly rental income was $725. Also, it was definitely established that Corder specifically advised DeCamp that the entire second floor was then under lease to a fraternal lodge at a monthly rental of $200, and that this lease, which was entered into on May 13, 1957, was for a term of five years. DeCamp relayed this information to William C. Laws, who handled this transaction for the Laws family.

Prior to the actual transfer of the property the Laws asked to see all leases on the various units of the property for the purpose of submitting them to their attorney for examination. Corder delivered all existing leases to William C. Laws, including the lease with the fraternal lodge which covered the entire second floor, called for monthly rent in the amount of $200, and by its terms was to run until May 13, 1962.

It was admitted by Corder that contrary to the terms of his written lease with the fraternal lodge, which lease he had exhibited 'without comment' to William C. Laws, he had a 'private understanding' with the lodge that it need pay no rent for the first six months of their tenancy. In this connection it was the intention of the lodge to remodel the second floor so as to better serve its fraternal purpose. However, this remodeling was never fully completed and in October, 1957, the officers of the lodge officially advised Corder that they were financially unable to go through with their transaction. No money rentals were ever paid Corder by the lodge. Notwithstanding the admitted knowledge of Corder that the lodge did not intent to occupy the second floor of the building and that it could not live up to its lease, he nevertheless, through his agent, advised William C. Laws that the total monthly rental income from the property was $725, which included $200 for rental of the second floor to the lodge, and thereafter upon request had his agent deliver to the Laws the five year lease with the fraternal lodge. The evidence strongly suggests that Corder not only permitted, but actually encouraged the lodge not to move out immediately, so that there would be no intimation to would-be purchasers that the second floor was in fact unoccupied.

The Laws had no knowledge of the true nature of the relationship between Corder and the lodge, and relied up the written lease as fully and accurately reflecting the true state of affairs.

Soon after the Laws acquired the property the fraternal lodge moved out what belongings it had in the building, and thereafter, for nearly two years the Laws tried without success to rent the second floor, but finally rented it for $160 per month.

Upon discovery that they had been deceived as to the rental status of the entire second floor of the building which they had just purchased, the Laws elected to affirm the transaction and thereafter promptly brought their action in fraud. In their complaint the Laws generally charged Corder with misrepresenting the monthly rental...