Ferron

In the first of the cases entitled above, plaintiff sought a rescission of an agreement of purchase and sale, with damages, on the ground of fraud. In the second action the plaintiffs, who were the vendors, sought to foreclose a chattel mortgage given to secure the payment of a portion of the purchase price under the same transaction set up in the first case. While there was no consolidation in the court below, yet the main issue in both cases was the same, and it was stipulated that the testimony and evidence adduced in one case be considered in the other, without repetition. By stipulation the appeals in both cases are presented here on the same record. The appellant in both cases is the same, and therefore, the reference to the parties will be merely as appellant and respondent.

Appellant purchased from respondents a theatre located in Los Angeles County. Por the purposes hereof it may be stated to be beyond dispute that the entire transaction was based specifically on respondent’s statement to appellant, in writing, that the average gross income for the twelve months preceding was not less than $1100 per week, exclusive of “Lenten Season”. Both parties concede the making of…