United Investment Co. v. Los Angeles Interurban Railway Co.

This action was brought to enjoin the delivery of three deeds of right of way deposited in escrow by the plaintiff, to rescind the escrow and for the return of the deeds, upon the ground that the execution and deposit of the deeds were procured by false and fraudulent representations made by one of the defendants. The condition of the escrow was the construction of a railroad from the city of Los Angeles to the city of Covina over the right of way conveyed by said deeds.

The misrepresentations as alleged in the original complaint were: (1) That the defendant Lahee had represented to A. W. Rhodes, the secretary and manager of the plaintiff, that C. H. Ruddock, the predecessor in title of plaintiff, and the owner of more than forty per cent of the stock of that corporation, had agreed to give the strip of land, covered by said deeds, for railroad purposes without any compensation therefor, whereas, in fact, Ruddock had agreed to give the right of way upon condition that he be paid the sum of $2,157.50, and that Lahee knew this fact and concealed it from Rhodes, to whom it was unknown at the time of the making of the deeds; (2) that Rhodes, on behalf of plaintiff, informed Lahee…