May 4th - 2004

Merv's Column Farm Fraud

The sellers made several false representations when selling their ranch about the coverage of the irrigation pivots, the ton per acre production, the yield of calves and average weight and price,

The sellers made several false representations when selling their ranch about the coverage of the irrigation pivots, the ton per acre production, the yield of calves and average weight and price, the yield of hay and price per bale, the sales of calves and weight and price and the quality and usage of the irrigation well. When the buyers discovered that the irrigation pivot was incorrect the Realtor prepared some documents that purported to protect themselves and the sellers for that error. The buyers cancelled the transaction. Later they decided to put in another offer and a deal was made at $950,000.

After the buyers took possession they discovered that the other information was also not true. The well was 'salty' and the crop and animal sale information was grossly misrepresented. They sued the sellers for
fraudulent misrepresentation.

The sellers were shown to have known that the information was false. In fact, parts of the female seller's diaries clearly implicated them. She said, "I should have burned them." When the male seller was confronted with these false statements he told the buyers to sue his Realtors since they "should have checked" and "they have insurance."

The Judge was not impressed with the evidence of the sellers or of their expert witnesses and preferred the evidence of the buyers and their witnesses. The buyers overpaid for the ranch by $440,000 and had additional expenses of $90,000 and loss of profits of $500,000 for a total award of $1,030,000.

Wiebe v Gunderson 2003 BCSC 1282

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