TARNOWSKI V. RESOP
236 Minn 33, 51 N.W.2d 801 (1952)
NATURE OF THE CASE: Resop (D) sought review of the judgment in favor of Tarnowski (P),
business purchaser, in P's actions that sought to recover an alleged secret commission that
was obtained by D and to recover damages against D.
FACTS: Tarnowski (P) engaged Resop (D) as his agent to investigate and negotiate for the
purchase of a route of coin-operated music machines. On 6/2/1947, relying on D's advice and
investigation, P purchased such a business. D alleged that there were 75 locations in the
operation with one or more machines at each location, that the equipment was not more than 6
months old and that the gross income from all locations was more than $3,000 per month. P
was to pay $30,620. He paid $11,000 down. In 6 weeks from purchase, P discovered that D's
representations were false. There were no more than 47 locations and some of them had no
machines. Those that did had machines older than 6 months. Moreover, gross income was much
lower than described. Upon discovery, P rescinded the sale. He offered to return what he
received, but seller refused to give him the money back. P brought a suit which resulted in
a verdict of $10,000 for the P. The seller paid $9,500 and the action was dismissed. In this
action, P alleges that D, who acting as his agent received a secret commission, which P
wants to recover. He also seeks to recover: (1) losses suffered in operating the route; (2)
loss of time devoted; (3) expenses for rescission and investigation; (4) nontaxable expanses
in connection with prosecution of the suit against the seller; and (5) attorney's fees. P
recovered a verdict of $5200 and this is an appeal.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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