L & N Grove, Inc. v. Chapman

Facts

D, who was an active real estate broker with offices in Orlando, contacted P concerning the purchase of a 10-acre tract of land. The property is situated north of and contiguous to a 22-acre tract that D had purchased previously. Both parcels of land are located on U.S. Highway 27 near what was designated as State Road #530, now U.S. Highway 192. P is also a real estate broker with offices in St. Petersburg and was a member of the partnership that owned the subject property and spokesman for the partnership in this transaction. P agreed to sell the land to D. The buyer designated in the contract was Paul L. Curtis (D), or assigns. The purchase price agreed upon was $47,500, which appears to have been one and one half times the then market value of the land for grove purposes. P would maintain the grove and be entitled to the fruit crop under the conditions set forth in 'SCHEDULE 'A'' which was attached to the said contract. In August 1966, D formed L & N Grove, Inc. The corporation was organized for the purpose of acquiring title to the real property involved here and the 22-acre tract of land referred to above. The corporation was dissolved on August 20, 1970. The warranty deed, mortgage, and note were recorded among the public records of Lake County on December 14, 1966. L & N Grove, Inc. was the grantee named in the deed. The mortgage and note were signed by D as president of the corporation. In 1965, Walt Disney announced his intention to build a new theme park near Orlando, Florida on Highway Route 27. D made a guess where the Park’s main entrance would be and he guessed right. It was the land P sold to D. P sued Ds for rescission. The trial court found that D had knowledge of the impact that Walt Disney World would have on the value of the property and that D failed to disclose that fact to P. The court imposed a constructive trust on the land in favor of P. D appealed. 

Issues

Rule of Law

Holding and Decision

Legal Analysis

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