Opinion ID: 7120833
Heading Depth: 1
Heading Rank: 2

Heading: Errors relied upon for reversal necessary to be considered are:

Text: (1) That the court erred in striking the amendment to the amended and substituted answer, for the reason that counsel for defendant had no knowledge of the facts there alleged, until the beginning of the trial; that the rights of plaintiff would not have been prejudiced by permitting the amendment to stand; that the defenses pleaded in the amendment were in the interest of justice; that plaintiff’s interests could have been protected by granting a continuance. (2) That the court erred in directing the verdict, for the following reasons: (a) That said note was obtained by deception and fraud of the payee; (b) that the noro was without consideration; (c) that the record shows want of good faith on the part of the payee in obtaining said note and in transferring the note to plaintiff; (d) that the record shows that plaintiff accepted said note with knowledge of fraud of the Land Corporation in obtaining said note; (e) that the record shows that plaintiff and its officers were warned of the bad faith of the payee in procuring said note, before the purchase of said note; and (f) that the whole record shows that defendant was entitled to have his defense submitted to the jury. Other assignments of error relate to rulings excluding testimony offered by appellant. VII. Considering the ruling complained of in striking the amendment to the amended and substituted answer: The case was commenced on March 29, 1919; an answer was filed September 26, 1919; an amendment to original answer was filed November 26, 1919; and an amen(je(j ail¿ substituted answer was filed on April 6, 1920. The case was noticed for trial by plaintiff for the September term, 1919, for the November term, 1919, for the February term, 1920, and- the April term, 1920. The case came on for trial at the September, 1920, term, and the trial of the case was begun on September 30, 1920. On the second day of the trial, October 1, 1920, appellant filed the amendment to the amended and substituted answer which was stricken by' the court, of which ruling appellant complains. Above, in Division 5, we have set out the allegations of said amendment. Entirely new issues of fact laid in the state of Texas, of additional fraudulent acts by the payee of the note, were alleged in the amendment offered. About a year and a half had been consumed in making up the issues as they stood at the time the trial was commenced. The allowance of amendment to pleadings rests in the sound discretion of the trial court. Phillips v. Van Schaick, 37 Iowa 229; Emerson & Co. v. Converse, 106 Iowa 330; Allen v. Methodist Episcopal Church, 127 Iowa 96. Under the situation of pleadings presented by the record, we are constrained to hold that striking the amendment was not error. VIII. We come now to consider the ruling of the court in directing verdict for the plaintiff. At the close of defendant’s testimony, plaintiff moved to take the defense from the consideration of the jury, and directed the jury to return a verdict for the plaintiff on several grounds. Only one ground of the motion need be considered, which is: “Because, under the law, a vendee of real estate claiming fraud or misrepresentation in the sale of land has two remedies only: that of retaining the land and suing for damages, or recoup for damages against the purchase price; and second, the right to rescind the contract for alleged fraud. The defendant has wholly failed to show the rescinding of the contract on his part, and has not shown that he has elected to retain the land and recoup for damages. He could not recoup agaifist this plaintiff, and therefore he has not elected to pursue either of the remedies that the law gives him in such a case.” We believe it is the universal rule — certainly it is the rule in this state — that a party claiming fraud in a contract has one of two remedies only: either to rescind the contract and tender back the property received thereunder, or to affirm the contract and recoup in damages. In the instant case, appellant has not rescinded, and he does not seek to recoup in damages. There are many cases holding that one defrauded in a transaction may rescind or seek recompense in-damages. Among them are Rose v. Eggers, 148 Iowa 306; Lake v. Dredge, 158 Iowa 725; Kuehl v. Parmenter, 195 Iowa 497. Appellant, to avail himself of the fraud pleaded as a complete defense, was required to plead and prove a rescission of his contract of purchase of the Texas land, and failure to so do was fatal. Cox v. Cline, 147 Iowa 353; Geddes v. McElroy, 171 Iowa 633. If it had been established by the evidence that the land was entirely valueless at the time the contract of purchase was entered into, rescission of the contract would not have been necessary ; for in that case, there would have been nothing of value to return. But in the instant case; defendant testified that, at the time he purchased the land, it was worth $10 an acre. The land having some value, according to the testimony of defendant himself, rescission of the contract was a condition precedent to maintaining the defense based on fraud. Kuehl v. Parmenter, supra. Appellant not having pleaded or attempted to plead and prove rescission of Ms contract of purchase, and not having sought to recoup in damages, his defense must, therefore, fail. It was not error to direct a verdict in favor of appellee. The judgment of the trial court must be and is — Affirmed. Weaver, Evans, Stevens, Faville, and De Graef, JJ., concur.