Mahon v. Berg

The trial court found that defendants fraudulently induced plaintiffs to enter into an agreement for exchange of real property by gross overstatement of the income of the motel offered by defendants and by concealment of the existence of a deed of trust upon that property. This deed of trust, executed in favor of defendant husband’s brother 10 weeks before signature of the exchange agreement, was not recorded until close of escrow, at a time carefully contrived to precede recordation of defendants’ deed to plaintiffs. Judgment directed rescission of the exchange agreement, cancellation of…