Sacramento Suburban Fruit Lands Co. v. Johnson

This is one of the Rio Linda or Sacramento Suburban Fruit Lands cases.

Upon the question of the statute of limitations (Code Civ. Proc. § 338, subd. 4) it is thought the complaint as amended was sufficient as against a demurrer on that ground, and no other serious question is raised by the demurrer; and, as against the motion for a directed verdict, we think the evidence was clearly such as to require submission of the issue to the jury. It is not the law, as in this and other cases of the group appellant seems to contend, that one who in good faith and reasonably contracts with another, in reliance upon the latter’s representations and assurances touching material facts, must thereupon proceed diligently to find out whether he has been defrauded. He has the right to proceed upon the assumption that he has been honestly dealt with until by reason of some occurrence, fact, circumstance, or condition coming to his knowledge, he has ground to suspeet he has been deceived. Of course he cannot close his eyes to that which is obvious or to easily observable conditions and so deny knowledge, but without something to arouse his suspicion he is not bound to make quest for a lurking…