See Barke v Grand Mobile Homes Sales, 6 Mich. App. 386, 390-391; 149 N.W.2d 236 (1967), and cases cited therein. See also Mock v Duke, 20 Mich. App. 453, 455; 174 N.W.2d 161 (1969). In view of the circumstances present in this case, and in light of the principles discussed in the above authorities, we find that the instant suit was properly tried before a jury.
While defendants emphasize the basic repugnance of allowing plaintiff to "blow hot and cold" at the same time, the inconsistency only involves legal theories of recovery. Under rescission plaintiff would be required to restore all benefits received and would be entitled to the purchase price of the restaurant and consequential damages, Mock v Duke, 20 Mich. App. 453; 174 N.W.2d 161 (1969), whereas his actual damages, which are the same regardless of which defendant committed the fraud upon him, consist of plaintiff's loss of the bargain measured by the difference between the actual value of the property and its value if it had been as represented. Hubert v Joslin, 285 Mich. 337, 346; 280 N.W. 780 (1938); Barker v Fordville Land Co, 264 Mich. 95, 96-97; 249 N.W. 491 (1933).
While defendants emphasize the basic repugnance of allowing plaintiff to "blow hot and cold" at the same time, the inconsistency only involves legal theories of recovery. Under rescission plaintiff would be required to restore all benefits received and would be entitled to the purchase price of the restaurant and consequential damages, Mock v Duke, 20 Mich. App. 453; 174 N.W.2d 161 (1969), whereas his actual damages, which are the same regardless of which defendant committed the fraud upon him, consist of plaintiff's loss of the bargain measured by the difference between the actual value of the property and its value if it had been as represented. Hubert v Joslin, 285 Mich. 337, 346; 280 N.W. 780 (1938); Barker v Fordville Land Co, 264 Mich. 95, 96-97; 249 N.W. 491 (1933).
Several other states allow the recovery of restitutionary damages along with rescission when fraud or misrepresentations is the cause of the claim. Lobdell v. Miller, 114 Cal.App.2d 328, 250 P.2d 357 (1952); Bernofsky v. Schwartz, 370 So.2d 590 (La.App. 1979); Mock v. Duke, 20 Mich. App. 453, 174 N.W.2d 161 (1969); Sawyer v. Pierce, 580 S.W.2d 117 (Tex.Civ.App. 1979); N.Y. Civ Prac. Law 3002(e) (McKinney). We believe that restitutionary damages conform with the purpose of rescission, which is to put the defrauded party back in as good a position as he occupied before entering the contract. Consequently, we hold that such damages may be awarded along with rescission.
As to plaintiffs' damages, the law in Michigan is that, if the plaintiff "proceeds under a theory of rescission, he may also recover damages for losses sustained as the direct result of the misrepresentation". Mock v Duke, 20 Mich. App. 453, 455; 174 N.W.2d 161 (1969). Thus, to the extent that plaintiffs have established any consequential damages arising from the fraud, such may be awarded.
Several other states allow the recovery of restitutionary damages along with rescission when fraud or misrepresentations is the cause of the claim. Lobdell v. Miller, 114 Cal.App.2d 328, 250 P.2d 357 (1952); Bernofsky v. Schwartz, 370 So.2d 590 (La.App. 1979); Mock v. Duke, 20 Mich. App. 453, 174 N.W.2d 161 (1969); Sawyer v. Pierce, 580 S.W.2d 117 (Tex.Civ.App. 1979); N.Y.Civ.Prac.Law 3002(e) (McKinney). We believe that restitutionary damages conform with the purpose of rescission, which is to put the defrauded party back in as good a position as he occupied before entering the contract. Consequently, we hold that such damages may be awarded along with rescission.