Anderson Drive-In Theatre, Inc. v. Kirkpatrick

110 N.E.2d 506 (1953)

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Anderson Drive-In Theatre, Inc. v. Kirkpatrick

Indiana Court of Appeals
110 N.E.2d 506 (1953)

CS

Facts

Kirkpatrick (plaintiff) was a farmer who leased land under a 25-year lease to Anderson Drive-In Theatre, Inc. (Anderson) (defendant). After Anderson leased the land, it found that the land was boggy and not suitable for building a drive-in theater complex, which was the purpose for which Anderson had leased it. A dispute arose over the lease between Anderson and Kirkpatrick. Eventually Kirkpatrick sued Anderson for the rent under the terms of the lease. Anderson filed a cross-complaint, alleging that Kirkpatrick had known that the land was unsuitable for Anderson’s purpose, that this unsuitability was not readily apparent, and that Kirkpatrick’s failure to inform Anderson about this condition of the land amounted to a misrepresentation of material fact. Kirkpatrick filed a demurrer to Anderson’s cross-complaint, asserting that it did not state facts sufficient to support a cross-complaint, because the rule of caveat emptor applied to leases. The lower court sustained Kirkpatrick’s demurrer. Anderson appealed.

Rule of Law

Issue

Holding and Reasoning (Royse, C.J.)

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