Charles John Barkhorn, Jr. v. Adlib Associates, Inc., a Nevada Corporation

Charles John Barkhorn, Jr., brought this action against Adlib Associates, Inc. to recover the sum of $50,000 paid to defendant as the cash -consideration for a sixty-day option to lease, for fifty-five years, certain lands at Waikiki. Plaintiff also sought to recover the sum of $28,025.46 representing expenses allegedly incurred, in reliance upon the option, in planning for the development of the property. Plaintiff’s claims were premised on the theory that the option granted him for a lease of the property carried with it an implied warranty of title in the defendant; that the property was actually and prospectively encumbered and that the title was not clear; and that, therefore, plaintiff, without having attempted to exercise the option, but having given notice of purported cancellation thereof before expiration of the option, is entitled to recover the monies paid for the option and monies expended in reliance on the option.

After a trial to the court without a jury, the trial court rendered an opinion in favor of defendant. Barkhorn, Jr. v. Adlib Associates, Inc., D.Hawaii, 222 F. Supp. 339 . A judgment dismissing the action was thereupon entered. Plaintiff appealed. This…