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Estate of Nelson v. Rice

Court of Appeals of Arizona
12 P.3d 238 (Ariz. App. 2000)


Edward Franz and Kenneth Newman (plaintiffs), the representatives of Martha Nelson’s estate, held a public estate sale. The plaintiffs had hired Judith McKenzie-Larson to appraise Nelson’s personal property. McKenzie-Larson explicitly told the plaintiffs that she did not appraise fine art and that if she saw any they would have to hire a different appraiser. She did not mention any fine art in her report to the plaintiffs. At the public estate sale, Carl Rice (defendant) purchased two paintings for the asking price of $60. Rice had purchased some art in the past, but was not an experienced art dealer. The paintings turned out to be very valuable and Rice sold them at auction for over $1 million. The plaintiffs brought suit seeking to rescind the sale on the grounds of mutual mistake and unconscionability. Both parties moved for summary judgment. The trial court granted summary to Rice. The plaintiffs appealed.

Rule of Law


Holding and Reasoning (Espinosa, C.J.)

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