Peterson v. Arellono

This is an action for fraud in the purchase of a food-processing business. The Municipal Court of Hennepin County awarded plaintiff damages in the sum of $2,000. The issues are whether defendant fraudulently concealed from plaintiff her inability to secure the renewal of a food license, and, if so, whether this suit was one for rescission over which the municipal court had no jurisdiction.

The contract out of which the dispute arose was entered on January 6, 1967, between defendant and plaintiff and a third party whose interest was later assigned to plaintiff. The contract provided that…