ROBERT K. BASNETT AND BARBARA L. BASNETT, APPELLANTS,
v.
MERLE E. BESETT, IRENE D. BESETT AND C. JOE CZERWINSKI, APPELLEES

Fla. 2d DCA | 1979-06-06
No. 78-1503
GRIMES, C. J., and OTT, J., concur.
371 So. 2d 705 Florida District Court of Appeal, Second District (1979) Positive Treatment
Cited by 4 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

The Basnetts purchased a fishing lodge for $300,000 and sued the sellers and real estate agent for fraud and misrepresentation, alleging the property was misrepresented as 5.5 acres when it was actually 1.44 acres. The trial court dismissed both the fraud claim and the reformation/abatement claim, but the appellate court reversed, holding that a buyer need not investigate independently when specific false statements are knowingly made and reasonably relied upon.


Holding

The court held that when a specific false statement is knowingly made and reasonably relied upon, the buyer is not precluded from recovery simply because he failed to make an independent investigation of the statement's veracity. Both the fraud count and the reformation/abatement count stated valid causes of action and should not have been dismissed.


Headnotes

[1] A party alleging fraud and misrepresentation may recover damages even if they failed to conduct an independent investigation, provided the false statement was knowingly m…

[2] A complaint alleging fraud and misrepresentation is sufficient to state a cause of action if it asserts that false statements were knowingly made to induce a purchase and…

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Key Quotes

“when a specific false statement is knowingly made and reasonably relied upon, the representee is not precluded from recovery simply because he failed to make an independent investigation of the veracity of the statement”

Establishes the core legal principle that a buyer can recover for fraud without having investigated, if the misstatement was specific and reasonably relied upon.

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Facts & Procedural History

The Basnetts purchased a fishing lodge for $300,000 from the Besetts and Czerwinski. The sellers and real estate agent allegedly represented that the …

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Opinion of the Court
DANAHY, Judge.-

DANAHY, Judge.-

After purchasing a fishing lodge for $300,000, appellants brought this suit against the sellers and the real estate agent who handled the transaction (appellees) asking in count one of their complaint for damages based on fraud and misrepresentation, and in count two for reformation of the contract of sale and abatement of the purchase price because of a mutual mistake of fact concerning the size of the property purchased. The trial judge dismissed both counts with prejudice. We reverse.

In count one, appellants alleged that appellees falsely represented certain facts concerning the property, most notably that the size of the property was 5*A acres when in fact its size was 1.44 acres. Appellants alleged that these misrepresentations were knowingly made in order to induce appellants to make the purchase and that appellants relied upon them. However, appellants did not allege that they made efforts to investigate the facts as represented, nor did they allege any circumstances excusing or explaining their failure to investigate.

Appellees argue that appellants’ count one allegations fail to state a cause of action because they reveal that appellants could have learned the truth by the exercise of ordinary care. Appellees point out, for example, the listing of the property described it as 16 specific lots plus Va acre of submerged land, gave book and page number, and advised “see plat.” Had appellants simply consulted the recorded plat and calculated the total square feet of the lots, appellees observe, they could readily have ascertained that the size of the property was much less than the hxh acres it was represented to be.

We reject appellees’ argument on the authority of our recent decision in Upledger v. Vilanor, Incorporated, 369 So. 2d 427 (Fla. 2d DCA 1978). In that case we held that when a specific false statement is knowingly made and reasonably relied upon, the representee is not precluded from recovery simply because he failed to make an independent investigation of the veracity of the statement. In this case, as in the Upledger case, it cannot be said as a matter of law that appellants must be denied recovery for failure to ascertain the correct size of the property and the truth of the other facts represented to them. None of the alleged misrepresentations can be described as “puffing,” patently incredible, or obviously false. Appellants were entitled to rely upon them.

Appellants’ count two contains sufficient allegations to state a cause of action for reformation of the contract of sale and abatement of the purchase price. Accordingly, we hold that the trial judge erred in dismissing that count as well as count one.

Reversed and remanded with instructions to reinstate counts one and two of the complaint and for further proceedings not inconsistent with this opinion.

GRIMES, C. J., and OTT, J., concur.


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Citator

Cited By

  • Besett v. Basnett, 389 So. 2d 995 (Fla. 1980)
    …ALDERMAN, Justice. The petitioners, Mr. and Mrs. Besett and Mr. Czerwinski, the appellees in the district court and the defendants in the trial court, seek review of the district court’s decision in Basnett v. Besett, 371 So. 2d 705 (Fla.2d DCA 1979). In this case, the district court found that a fraudulent misrepresentation complaint stated a cause of action even though the plaintiffs failed to allege that they had investigated the truth of the defendants’ misrepresentations.…
  • Eytan Gold v. Perry, 456 So. 2d 1197 (Fla. 4th DCA 1984)
    …independent investigation he is charged with knowledge of all facts he might have ascertained by making a reasonably thorough investigation. The Supreme Court heard Besett because the Second District Court of Appeal’s decision in Basnett v. Besett, 371 So. 2d 705 (Fla.2d DCA 1979), was in conflict with the above mentioned Potakar v. Hurtak, 82 So. 2d 502 (Fla.1955). The Supreme Court upheld the decision of the district court, receding from Potakar. Potakar had held a person to whom false representations have…

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