Keidatz v. Albany
Supreme Court of California
249 P.2d 264 (1952)
Keidatz (plaintiff) entered into a contract with Albany (defendant) for the purchase of certain property. In a prior action, Keidatz brought suit against Albany to rescind the contract because of defects in construction. In that action, the court sustained a demurrer to the second amended complaint and gave Keidatz leave to amend. Keidatz failed to amend the complaint. As a result, judgment was entered in favor of Albany. Thereafter, Keidatz brought this action against Albany seeking damages for fraud, alleging that Albany knowingly made false representations regarding the value of the property to induce Keidatz to purchase the property. Albany moved for summary judgment on the grounds that the judgment entered on demurrer in the prior rescission action precluded this action. At trial, the court granted Albany’s motion for summary judgment. Keidatz appealed.
Rule of Law
Holding and Reasoning (Traynor, J.)