Mertens v. Coffman

OPINION

WOOD, Judge.

The trial court ruled that the seller’s fraud was a defense available to the buyer when a creditor of the seller sought to hold the buyer liable on the basis of the buyer’s assumption agreement. We discuss: (1) propriety of rescission because of the fraud; and (2) the seller’s fraud as a defense.

There were repeated sales of the personal property of the laundromat. Parthemore sold to Slater in 1976. Slater sold to Mertens in 1978. Mertens sold to Coffman in 1979. Coffman sold to Phillips (the three Phillips defendants) in 1980. This litigation is between Mertens and…