Renner v. Kehl

722 P.2d 262 (1986)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

The Kehls (D) and Moyles were two couples that decided to sell their joint venture business in unimproved land near Yuma Arizona. They held leases on 2,262 acres from the State of Arizona. Renner (P) contracted to pay $220,000 for the leases. Before that purchase agreement, P made it clear to the sellers that he was interested in the property for a specific purpose, the cultivation of jojoba and that adequate water supplies were essential. From the look of things, the property appeared to be ideal for jojoba production. After drilling five wells, the buyers abandoned the project as none of the wells drilled produced water sufficient for jojoba production. Renner (P) then sued Ds for rescission. P had spent $229,000 developing the land. The trial court ordered Ds to reimburse Ps upon receiving a reassignment of the leases. The court based this decision on mutual mistake of fact and failure of consideration. D was ordered to pay P $309,849.84 for reimbursement of the down payment and the cost of developing the property along with costs and attorney’s fees. The Court of Appeals affirmed. D appealed.