Beutel v. Fergusson
Appellant a real estate broker, was a dual agent for both the buyer and the seller in the sale of residential property in Carmel. Appellant subsequently acquired title to the property and sued the seller, for breach of contract and fraud due to alleged misrepresentations by Barker about the condition of the property. After Barker passed away, respondent, the executor of Barker’s estate, obtained summary judgment on the grounds that Beutel was not a party to the real estate contract between Barker and the buyer and that Barker did not make any representations that were intended to induce appellant, to buy the property. The court also awarded the executor $16,837.50 in attorney fees.
On appeal, appellant contends the court erred in granting summary adjudication of the fraud cause of action and hence the summary judgment because this case involves indirect fraud or deception, which does not require contractual privity. Appellant alleges that under the Restatement Second of Torts, section 533, he was not required to prove that Barker intended that her misrepresentations or concealment be relied on by Beutel. Court concluded that this is not a case of indirect deception within the meaning of section 533 and that the court did not err in granting summary judgment. Court also affirmed the trial court’s order awarding attorney fees to the executor.
Comments on Beutel v. Fergusson