Hanks v. Nationwide Mutual Fire Insurance

ERWIN, Judge.

Plaintiffs Evidence

Ms. Hanks testified that on 21 December 1976, she and her brother, Bobbitt, bought all the stock and fixtures of Stop and Shop from Jimmy Akers for $10,000 in cash, although the bill of sale showed a purchase price of $8,500. No inventory was taken of the stock at the time of the sale. After the purchase, Bobbitt invested $7,000 in merchandise for the store. The building and land for the store were leased by plaintiffs.

After the purchase, Anderson tried to sell plaintiffs $50,000 to $60,000 worth of fire insurance on the store. Ms. Hanks finally purchased a…