Bibeau v. Ward

228 A.D.2d 943, 645 N.Y.2d 107, 645 N.Y.S.2d 107, 1996 N.Y. App. Div. LEXIS 7318
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 20, 1996
StatusPublished
Cited by18 cases

This text of 228 A.D.2d 943 (Bibeau v. Ward) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bibeau v. Ward, 228 A.D.2d 943, 645 N.Y.2d 107, 645 N.Y.S.2d 107, 1996 N.Y. App. Div. LEXIS 7318 (N.Y. Ct. App. 1996).

Opinion

Cardona, P. J.

On September 2, 1988, plaintiff entered into a contract with defendant by which the latter was to, inter alia, find and purchase horses suitable for training as jumping horses. The contract also required defendant to "sell said horses as soon as possible at a profit”. According to plaintiff, defendant failed to perform his obligations under the contract. In this action, plaintiff alleged breach of contract, fraud and negligence, and sought both compensatory and punitive damages. At the trial, Supreme Court found in favor of plaintiff and awarded compensatory damages of $132,460.25 as well as punitive damages of $100,000. Defendant appeals.

Supreme Court determined that defendant not only breached the contract but also fraudulently induced plaintiff to enter into the contract and was grossly negligent. Upon a review of the record, however, we are constrained to conclude that while the evidence supports the finding of a breach of contract, it is insufficient to warrant a finding of either gross negligence or fraud. In reaching this conclusion, we note that insofar as this was a nonjury trial, we may weigh the evidence and grant the judgment, which, in our view, should have been granted by the trial court (see, Wirth v State of New York, 161 AD2d 1042, appeal dismissed 76 NY2d 876, lv denied 77 NY2d 802; Jacobs v Facilities Dev. Corp., 118 AD2d 971, lv denied 68 NY2d 603).

Turning first to the fraud cause of action, we note that such a cause of action does not lie where, as here, the claim is based upon the same allegations contained in the breach of contract cause of action (see, Guerrero v Valiando, 197 AD2d 667). Furthermore, plaintiff’s allegations of scienter are not suf[944]*944ficient to transform what is essentially a breach of contract action into a claim of fraud where the fraud has to do with the breaching party’s abilities and intentions (see, Green v Dolphy Constr. Co., 187 AD2d 635). Plaintiff contends that his fraud claim is separate from the contract claim because defendant’s misrepresentation about where the horses were being purchased induced plaintiff to enter the agreement. We disagree. Even accepting that defendant made this misrepresentation, that does not save plaintiff’s fraud cause of action.

Initially, as Supreme Court noted, there was no provision in the contract about where the horses were to be purchased. In addition, the element of reliance needed to sustain a claim of fraud (see, Crafton Bldg. Corp. v St. James Constr. Corp., 221 AD2d 407) is lacking in this case. Plaintiff’s testimony indicated that he did not decide to invest with defendant on the basis that the horses were coming from Germany. We note that the horses actually came from Germany; it was only their date of arrival in this country that was allegedly misrepresented. Nor did plaintiff make out a claim of constructive fraud. Even accepting that a fiduciary relationship existed between the parties, that will substitute only for the element of scienter (see, Franco v English, 210 AD2d 630), not for reliance. Under these circumstances, plaintiff failed to sustain his claim of fraud.

In reference to the breach of contract claim, the contract provided that defendant was to select the horses and that plaintiff was to "acquire title to said horse or horses”. It was also specifically provided that defendant would train the horses and pay for their care, maintenance and boarding. The evidence revealed that none of the three horses purchased was ever titled in plaintiff’s name. Defendant also admitted that he placed the horses out on consignment and did not pay for their care or maintenance. We agree with Supreme Court’s conclusion that this conduct by defendant violated the terms of the contract. The evidence also supports the court’s conclusion that defendant never endeavored to sell the horses at a profit. The fact that the horses were sent out on consignment with only defendant’s instruction to sell them for a certain amount did not, in our view, satisfy defendant’s obligation to "endeav- or to sell [the] horses as soon as possible at a profit”. Based on this evidence and deferring to the trial court’s credibility assessments (see, J & J Structures v Callanan Indus., 215 AD2d 890, lv denied 86 NY2d 708), it cannot be said that Supreme [945]*945Court erred in concluding that defendant breached the contract.

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Bluebook (online)
228 A.D.2d 943, 645 N.Y.2d 107, 645 N.Y.S.2d 107, 1996 N.Y. App. Div. LEXIS 7318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bibeau-v-ward-nyappdiv-1996.