H-D Irrigating, Inc. v. Kimble Properties, Inc.
Montana Supreme Court
8 P.3d 95 (2000)
- Written by Rose VanHofwegen, JD
Facts
H-D Irrigating, Inc., and its president, William Lane Jr. (collectively H-D) (plaintiffs) sued Lloyd Kimble and his two companies, Kimble Properties, Inc., and Hobble Diamond Cattle Company (Hobble) (defendants) after H-D bought land and a defective sprinkler system from Kimble’s two companies. H-D bought the land from Hobble for $1,650,000 and the irrigation equipment from Kimble Properties for $350,000. Kimble was president of both companies. Before the sale, Kimble told Lane that the irrigation equipment was in good working order, all the pivots could be used at the same time, the system provided enough water for the acreage, and Kimble knew of no irrigation-system deficiencies. However, Kimble failed to disclose an eroded pivot that no longer worked. The trial court found the omission a material misrepresentation and held Kimble and both his companies liable for the omission without distinguishing between the three of them. Kimble and his companies appealed, arguing that if any party was responsible for constructive fraud, it was Hobble alone, not Kimble or Kimble Properties.
Rule of Law
Issue
Holding and Reasoning (Trieweiler, J.)
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