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Isaacs v. Bishop
Texas Court of Appeals
249 S.W.3d 100 (2008)
Bishop bought a racetrack from Isaacs. Isaacs financed the sale, and Isaacs’s attorney drafted a promissory note containing Bishop’s payment obligation. Isaacs’s attorney inserted an automatic-default provision in the note. Bishop had the chance to, but did not, read the note. The racetrack became profitable, at which point Isaacs sought to oust Bishop by using the default provision. Isaacs began foreclosure proceedings. A jury found that Isaacs committed fraud by inserting the default provision. Bishop sought to rescind the purchase because of this fraud. The jury, however, found that Isaacs was only 70 percent at fault. The jury found that Bishop was 30 percent at fault due to his negligence in not reading the fraudulently added provision. The trial court thus denied Bishop’s request for rescission. Bishop appealed.
Rule of Law
Holding and Reasoning (Morriss, C.J.)
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