First Western Mortgage Co. v. Hotel Gearhart, Inc.

Plaintiff filed this suit seeking a dissolution of its joint venture with defendant. Defendant filed an answer and cross complaint requesting a rescission of the joint venture on the grounds of fraud or mistake. The trial court entered a decree granting rescission in favor of defendant, and plaintiff appeals.

The defendant, Hotel Gearhart, Inc., owns and operates a hotel, motel, restaurant and condominium on the Oregon coast at Gearhart. The stock is equally divided between John Osburn, the secretary and active principal, and Marshall Leathers, the president. The defendant, desiring to expand…