Keidatz v. Albany

Keidatz (plaintiff) previously sued Albany (defendant) to rescind a property-purchase contract due to construction defects, but that case was dismissed after Keidatz's second amended complaint failed to allege he sought rescission promptly enough — a demurrer was sustained and, when he did not amend further, judgment was entered for Albany. Keidatz then brought this new action alleging fraud, claiming Albany knowingly misrepresented the property's value to induce the purchase — a new allegation not included in the earlier rescission suit, which had never asserted the property was worth less than the price paid. Albany moved for summary judgment, arguing the prior demurrer judgment precluded this new suit; the trial court agreed, and Keidatz appealed.