Tarnowski v. Resop
Minnesota Supreme Court
51 N.W.2d 801 (1952)
Resop (defendant) agreed to act as an agent for Tarnowski (plaintiff) in a deal to purchase a coin-operated music machine business. Resop recommended that Tarnowski purchase Philllip Loechler and Lyle Mayer’s business. Resop did not investigate the business and instead presented the sellers’ fraudulent claims about the business to Tarnowski. Resop accepted a secret $2,000 commission from the sellers in exchange for making the recommendation. When Tarnowski discovered the fraud, he rescinded the contract and sued the sellers in the District Court of Olmstead County. The sellers paid $9,500 to settle the claim. Tarnowski then sued Resop to recover profits Resop made in brokering the deal and expenses and attorneys fees Tarnowski incurred as a result of the sale. The jury awarded Tarnowski $5,200. Resop appealed to the Minnesota Supreme Court.
Rule of Law
Holding and Reasoning (Knutson, J.)