Isaacs v. Cox

Decision Date21 June 1968
Citation431 S.W.2d 494
PartiesJames H. ISAACS et al., Appellants, v. Jimmie COX et al., Appellees.
CourtUnited States State Supreme Court — District of Kentucky

Harold K. Huddleston, Huddleston & Van Zant, Elizabethtown, for appellants.

Paul M. Lewis, Hatcher & Lewis, Elizabethtown, for appellees.

STEINFELD, Judge.

Appellants, James H. Isaacs and Rosie Isaacs, contracted with appellees, Jimmie Cox and Carolyn Cox, to purchase a house and lot in Hardin County, Kentucky, for $11,500.00. Pursuant to the contract the purchase price was paid, a deed was executed and the Isaacses took possession. They sued the Coxes for a rescission and damages or alternately for damages on the claim that the terms of the contract had been violated and there was fraud and misrepresentation in obtaining it. The Coxes moved that the action be dismissed. The court, apparently treating the motion as one for summary judgment pursuant to CR 56.03, entered a final judgment sustaining that motion. This appeal is from that judgment.

The complaint alleged that there were misrepresentations as to the water system, the construction of the house and that the Coxes represented 'that certain additional work and materials would be provided on the premises after the date of the deed and possession of the premises by the plaintiffs.' It also charged that 'the additional work agreed to and represented by defendants ha(d) not been performed.' It continued, 'By reason of said defects, misrepresentations, and refusal of defendants to perform the agreed work, the actual value of the property conveyed is Five Thousand ($5,000.00) less than the value would have been had said representations been true and correct and said work been performed.'

The contract which was filed pursuant to a motion of appellees, provided in part that:

'This offer includes that property to be completely finished, landscaped, seeded, water system installed, concrete floor in carport and walkway from front door to driveway. Drive way gravel. Two coats of paint on triming. Subject to purchaser inspection and approval.'

Depositions of Mr. and Mrs. Isaacs were taken and while there was equivocation as to certain facts there was testimony that some of the work which the contract provided would be done had not been performed. Also these parties deposed that representations later proved false had been made to them although it is not entirely clear from the testimony as to whether the representations were made by the Coxes or by their real estate listing broker and when made.

The trial court apparently construed this case as one based purely on misrepresentation. We do not so conceive it for it is our opinion that it is predicated both on alleged misrepresentation and a failure of performance of some of the terms of the written contract.

The Coxes erroneously claim that any representations made by the real estate broker cannot impose liability on them. The general rule is fully stated in 37 Am.Jur.2d 417, Fraud and Deceit, section 316, wherein it is said:

'The general rule is well settled that a principal is responsible for his agent's fraud in effecting a sale. * * * If the representations are made by the agent as a part of the negotiation for the purpose or bringing about the sale, and by means of this it is brought about, the conveyance made, and the proceeds of sale received, this brings the case within the general rule that a principal is responsible for such acts of his agent as are done within the scope of his authority, whether authorized or not, except by the general authority to do the principal act.'

This rule was approved in McGuffin v. Smith, et al., 215 Ky. 606, 286 S.W. 884 (1926).

Misrepresentations, if any, as to water quality or supply, were material. See cases involving wells or other...

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18 cases
  • Sanford Const. Co. v. S & H Contractors, Inc.
    • United States
    • United States State Supreme Court — District of Kentucky
    • June 6, 1969
    ... ... '* * * (F)raud in the inducement of or preliminary negotiations to a written contract is not ordinarily merged in the contract * * * to preclude an action for fraud.' 37 Am.Jur.2d 524, Fraud & Deceit, Sections 387--388. Cf. Isaacs v. Cox, Ky., 431 S.W.2d 494 (1968). Sanford contends that S & H made an examination of the site, after it '* * * had been afforded every opportunity to discover the truth * * *' therefore it '* * * could not be regarded as having relied on the * * * representations so as to be entitled to recover ... ...
  • Steelvest, Inc. v. Scansteel Service Center, Inc.
    • United States
    • United States State Supreme Court — District of Kentucky
    • April 11, 1991
    ... ... Under the Kentucky standard, we conclude that the movant should not succeed unless his right to judgment is shown with such clarity that there is no room left for controversy. See, Isaacs v. Cox, Ky., 431 S.W.2d 494 (1968). Only when it appears impossible for the nonmoving party to produce evidence at trial warranting a judgment in his favor should the motion for summary judgment be granted. See Harker v. Federal Land Bank of Louisville, Ky., 679 S.W.2d 226 (1984); Green v ... ...
  • Seigle v. Jasper
    • United States
    • Kentucky Court of Appeals
    • November 5, 1993
    ... ... Ehman, Ky., 394 S.W.2d 905 (1965); Rowland v. Miller's Adm'r, supra ...         Id. at 480 ... * * * * * * ... [T]he movant should not succeed unless his right to judgment is shown with such clarity that there is no room left for controversy. See Isaacs v. Cox, Ky., 431 S.W.2d 494 (1968). Only when it appears impossible for the nonmoving party to produce evidence at trial warranting a judgment in his favor should the motion for summary judgment be granted. See Harker v. Federal Land Bank of Louisville, Ky., 679 S.W.2d 226 (1984); Green v ... ...
  • Williams v. St. Claire Medical Center
    • United States
    • Kentucky Court of Appeals
    • October 7, 1983
    ... ... Claire Medical Center. The entry of summary judgment under CR 56.03 which is only proper in absence of a genuine issue of a material fact [Isaacs v. Cox, Ky., 431 S.W.2d 494 (1968), and Conley v. Hall, Ky., 395 S.W.2d 575 (1965) ] sets up two ultimate questions for our consideration: (1) Does a hospital owe a duty to private patients of staff physicians to enforce its published rules and regulations pertaining to patient care, the breach of ... ...
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