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Neves v. Wright
Utah Supreme Court
638 P.2d 1195 (1981)
Wilford and Gloria Neves (plaintiffs) entered a contract to buy a house from Bruce and Shonnie Wright (defendants). Under the contract, the Neveses would make payments on the house over time. Once the Neveses had paid the full purchase price plus interest, then the Wrights would sign over the deed. However, a week before selling the house to the Neveses, the Wrights had transferred the house’s title to Bruce’s parents to keep Bruce’s creditors from getting it. After the Neveses moved in, they learned about this transfer and told the Wrights that they were rejecting the contract as a fraud. The Neveses left the house and demanded the return of all money they had already paid. The Neveses sued the Wrights, asking the court to rescind the contract and order the Wrights to give back the money paid on the house. The Wrights countersued the Neveses for damages. Prior to trial, Bruce’s creditors’ case was dismissed, and Bruce’s parents gave back the property title. The trial court ruled in favor of the Neveses and dismissed the Wrights’ damages claim. The Wrights appealed.
Rule of Law
Holding and Reasoning (Stewart, J.)
Concurrence (Oaks, J.)
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