Lakshmi Grocery & Gas, Inc. v. GRJH, Inc.

Ravinder Sharma and Yosho Lakshmi (plaintiffs), building on a trusted prior business relationship with James and Alicia Metz of GRJH, Inc. (defendant), negotiated to lease a gas station and convenience store; in response to Sharma's repeated requests, Alicia emailed that the store made $22,000 in inside sales the prior August, but she'd actually mistakenly sent figures from a year earlier - the real prior-August sales were only $15,500. Sharma claimed he'd asked to see the actual sales records directly but was denied access, only allowed to visit as an anonymous customer, while Alicia denied he'd ever asked but confirmed it was company policy to keep prospective new lessees from talking to employees before a deal closed. Relying on the parties' history and the mistaken $22,000 figure, Sharma signed the lease, only learning the true numbers afterward; unable to renegotiate, Sharma and Lakshmi vacated and sued to rescind. The trial court found a substantial mutual mistake and rescinded the lease with damages, and GRJH appealed.