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Snyder v. Rhoads

Oregon Court of Appeals
615 P.2d 1058 (1980)


Facts

Laurence Snyder (plaintiff) sold two laundry businesses to Elvin Rhoads (defendant). Prior to buying the businesses, Rhoads saw Snyder’s listing agreement indicating that the businesses were operating at a profit. Shortly after purchasing the businesses, however, Rhoads learned that the stores had actually been operating at a loss. Nevertheless, Rhoads continued running the businesses and kept making payments to Snyder under the purchase agreement. A year and a half later, Rhoads stopped running the businesses because they were not profitable. Snyder took back the businesses under the contract’s security agreement. Snyder then sued Rhoads to recover what remained of the purchase price. In response, Rhoads brought counterclaims for either: (1) rescission of the contract or (2) affirmance of the contract with damages for Snyder using fraud to get Rhoads to buy the businesses. The trial court dismissed these counterclaims, and the case went to the jury on just Snyder’s claims. The jury ruled in favor of Snyder. Rhoads appealed.

Rule of Law

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Issue

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Holding and Reasoning (Thornton, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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