Court Opinion

ID: 9543119
Source: CourtListenerOpinion
Date Created: 2023-08-07 16:42:19.50595+00
Date Added: 2024-06-11T15:09:44.267065
License: Public Domain

Williams, C.J.
(dissenting)—Each of the nine elements necessary to establish fraud must be shown by clear, cogent and convincing evidence. Beckendorf v. Beckendorf, 76 Wn.2d 457, 457 P.2d 603 (1969); Puget Sound Nat’l Bank v. McMahon, 53 Wn.2d 51, 330 P.2d 559 (1958). I do not believe that element eight—the right to rely—was established by evidence of that character because it is plainly shown on the face of the earnest money agreement that the Hopkes refused to adjust the price if there were more or less than 70 acres. The bold red lines striking out the sentence “Purchase price to be adjusted at the rate of $2200 per acre in the event survey reveals more or less than the 70 acres.” were initialed by the Hopkes and gave Myers fair notice that the Hopkes did not agree to make an adjust*359ment in price if a survey revealed that there were more or less than 70 acres in the tract.
In an arm’s-length transaction the defrauded party must exercise ordinary care for the protection of his own interests and is charged with knowledge of all facts which would have been discovered by a reasonable prudent person similarly situated. And a failure to exercise reasonable diligence is not excused by mere confidence in the honesty and integrity of the other party.
Courseview, Inc. v. Phillips Petroleum Co., 158 Tex. 397, 407, 312 S.W.2d 197 (1957). 12 S. Williston, Contracts § 1501 (3d ed. 1970).
When the Hopkes affirmatively refused to agree to adjust the price if there were more or less than 70 acres, prudence and due diligence required that Myers seek clarification of the true size of the property.
The judgment should be reversed, and the cause dismissed.
Petition for rehearing denied February 17, 1976.
Appealed to Supreme Court February 25, 1976.