QUASI-CONTRACTS-RESCISSION FOR FRAUD-DEFRAUDING VENDEE\u27S RIGHT TO RECOVER FOR IMPROVEMENTS

Defendant fraudulently obtained a conveyance of land from plaintiff and while in possession of the tract made repairs and improvements to a building thereon. Upon discovery of the fraud plaintiff sued in equity to cancel the deeds involved, and tendered into court the consideration received from defendant. The lower court cancelled the deeds, returning the consideration to defendant, but refused to admit defendant\u27s evidence of repairs and improvements on the ground that equity will not allow a claim for the value of improvements when made by a defrauding party. Held, reversed in part. The evidence was admissible, and an accounting should be ordered for the value added to the land by improvements made in the bona fide belief that the title would stand. Walker v. Galt, (App. 5th, 1948) 171 F. (2d) 613