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INSURANCE COMPANY OF NORTH AMERICA v. BREHM

478 P.2d 387 (1970)

INSURANCE COMPANY OF NORTH AMERICA, a Pennsylvania Corporation, Respondent, v. Frederick W. BREHM and Anita M. Brehm, Husband and Wife, and Mary F. (Brehm) Brown and John W. Brown, Wife and Husband, Appellants.

Supreme Court of Oregon, Department 1.

Decided December 23, 1970.

Rehearing Denied January 19, 1971.

Attorney(s) appearing for the Case

James K. Gardner, Hillsboro, argued the cause and filed briefs for appellants.

James F. Spiekerman, Portland, argued the cause for respondent. With him on the brief were Souther, Spaulding, Kinsey, Williamson & Schwabe, Portland.

Before O'CONNELL, C.J., and McALLISTER, HOLMAN and HOWELL, JJ.

McALLISTER, Justice.

Insurance Company of North America brought this action to recover money alleged to be due under an indemnity agreement executed by defendants. Defendants denied liability and affirmatively alleged that they had rescinded the agreement because they had executed it in reliance on false representations. The trial court, sitting in equity, heard evidence on the rescission issue1 and entered its decree striking the affirmative...

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