Dale A. Price, Plaintiff-Cross-Defendant-Appellant v. Thomas Seydel and Nalani Seydel, Husband and Wife, Defendants-Cross-Claimants-Appellees

Dale Price appeals the district court’s judgment in favor of defendants Thomas and Nalani Seydel in Price’s fraud action. Price alleges that the Seydels sold him a motel in Ontario, Oregon after misrepresenting its earning potential. We affirm in part, reverse in part, and remand for further proceedings.

FACTS

On December 4, 1981 the Seydels agreed to sell Price the Stampeder Motel in Ontario, Oregon. Apparently, the Stampeder’s performance was not what Price expected nor, he alleges, what the Seydels represented it would be.

Price filed a fraud action against the Seydels. He alleged that the Seydels kept two sets of books, one showing yearly net income of $90,000 and the other showing a net income of $140,000. The lower figure, Price alleges, represented the actual yearly income of the Stampeder and the inflated figure was used to make the property more attractive to potential buyers. Price purchased the property relying on the higher figure.

Price’s action against the Seydels did not proceed smoothly. He asserts that he was unable to locate them to serve process. He tried to find them in Bend, Oregon, where Thomas Seydel’s brother-in-law said they resided. The Bend post…