Petitioner seller sought a writ of mandamus to dissolve an attachment order issued by the Superior Court of Imperial County (California), in connection with the rescission of a contract for the sale of real estate on the ground of fraud.

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Overview

The dispute arose over the sale of a grapefruit grove. Upon initiation of the action, a writ of attachment for the amount paid was procured upon an affidavit, and an attachment was levied upon certain property of the sellers. The lower court ordered restoration of the consideration paid, confirmed a rescission of the contract based upon fraudulent representations, enjoined enforcement of a promissory note, and restored title to the sellers. One of the sellers petitioned for mandamus relief from the order of attachment. The court held that an attachment was allowed under Cal. Code Civ. Proc. § 537 in all cases of implied contracts for the direct payment of money, defined to include all cases where at common law a contract was implied. Such an attachment, however, was permitted only where a defrauded buyer parted with money or with goods under fraudulent inducements and received nothing of value therefor. Hence, because the buyers had not made a showing that their security had no value, the petitioning seller was entitled to dissolve the attachment.

Outcome

The court issued a peremptory writ of mandate directing the court below to dissolve the attachment unless the buyers justified the attachment by a showing that the security held by them was or had become valueless.