Botanicals on the Park, Inc. v. Microcode Corp.

7 S.W.3d 465, 1999 Mo. App. LEXIS 1974, 1999 WL 793799
CourtMissouri Court of Appeals
DecidedOctober 5, 1999
DocketED 75049
StatusPublished
Cited by15 cases

This text of 7 S.W.3d 465 (Botanicals on the Park, Inc. v. Microcode Corp.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Botanicals on the Park, Inc. v. Microcode Corp., 7 S.W.3d 465, 1999 Mo. App. LEXIS 1974, 1999 WL 793799 (Mo. Ct. App. 1999).

Opinion

ROBERT G. DOWD, Jr., Judge.

Microcode Corporation (Microcode) appeals from the judgment in a civil action for fraud in favor of Botanicals on the Park, Inc. (Botanicals) in the principal amount of $59,645, together with prejudgment interest and costs. Microcode argues the trial court erred (1) in denying directed verdicts in favor of Microcode because Botanicals failed to prove the requisite knowledge to establish fraud; (2) in submitting its fraud instruction to the jury; and (3) in entering judgment in the principal amount of $59,645, because the evidence does not support that amount. We affirm.

We view the facts in the light most favorable to the jury verdict. Botanicals, a retail flowers and household gifts store, entered into an agreement to purchase a software product called “Micro Florist” from Microcode. Botanicals purchased the software in reliance on a statement in Microcode’s advertisement which stated, “Micro Florist is fully compatible with Windows 95.” During a telephone conversation, Microcode further represented to Botanicals that the Micro Florist software was fully compatible with Windows 95 and could be utilized from multiple workstations simultaneously using Windows 95 with the capacity for high volume floral shops like Botanicals.

Botanicals spent a total of $59,645 in the purchase of the software and various installation expenses, including $32,648 on the purchase of new computer hardware. The hardware purchased from Cedar Computers was based on equipment specifications from Microcode. The hardware was installed into a network configuration, which allowed the computers to pass information between stations. The network and computers worked with Windows 95 prior to the installation of the Micro Florist software. After installation of Micro Florist, the system would not work with Windows 95. In addition, the system experienced “crashes” which would not allow employees to complete sales transactions through the system.

Botanicals filed suit against Microcode for fraudulent misrepresentation. Microcode moved for a directed verdict at the close of Botanicals’ evidence, and again after the close of all the evidence. The trial court denied both motions. After the trial by jury and its verdict of $59,645, the trial court entered judgment in favor of Botanicals in the amount of $72,617, which included the principal amount of $59,645 and $12,972 in prejudgment interest. The trial court denied Microcode’s post-trial motions for judgment notwithstanding the verdict, or in the alternatives, new trial or remittitur. This appeal follows.

In its first point, Microcode argues the trial court erred in denying its motions for directed verdict because Bo-tanicals failed to prove the requisite knowledge to establish fraud. Microcode specifically contends Botanicals failed to prove Microcode’s “consciousness that it was without knowledge as to the truth or falsity of its representation.” 1

In reviewing the denial of a motion for directed verdict, we view the evidence and all reasonable inferences therefrom in the light most favorable to the jury’s verdict, disregarding all evidence and inferences to the contrary. Skinner v. Thomas, 982 S.W.2d 698, 699 (Mo.App. E.D.1998). A jury verdict will not be overturned unless there is a complete absence *468 of probative facts to support the verdict. Id.

For Botanicals to make a sub-missible case for fraudulent misrepresentation, substantial evidence is required for each fact essential to liability. Blanke v. Hendrickson, 944 S.W.2d 943, 944 (Mo.App. E.D.1997). Substantial evidence is evidence which, if true, has probative force upon the issues and from which the trier of facts can reasonably decide a case. Id. The questions of whether evidence in a case is substantial and whether the inferences drawn are reasonable are questions of law. Id.

To recover for fraud, a plaintiff must prove: (1) a representation; (2) its falsity; (3) its materiality; (4) the speaker’s knowledge of its falsity or ignorance of the truth; (5) the speaker’s intent that the statement be acted upon; (6) the hearer’s ignorance of the falsity of the statement; (7) the hearer’s reliance on the truth of .the statement; (8) the hearer’s right to rely on the statement; and (9) the hearer’s consequent and proximate injuries. Cabinet Distributors, Inc. v. Redmond, 965 S.W.2d 309, 312 (Mo.App. E.D.1998). The key element Appellant disputes in this case is whether Microcode knew the representations to Botanicals were false or was ignorant of the truth when the representations were made.

Fraud is never presumed and when fraud is alleged, the burden of proof as to each element falls upon the party asserting the fraud. Blanke, 944 S.W.2d at 944. Failure to prove any of the requisite elements is fatal to a claim for fraud. Id. The truth or falsity of the representation is determined as of the time it was made and as of the time it was intended to be relied and acted upon. Id. Because fraud is rarely susceptible of direct proof, it may be proved by circumstantial evidence. Cabinet Distributors, Inc., 965 S.W.2d at 312.

Under our standard of review, we find substantial evidence to support the jury’s verdict. The president of Botanicals testified Microcode represented that Micro Florist was compatible with Windows 95 without any qualifications or disclosure of risks. Microcode’s interrogatory answers read to the jury stated that any representations would not have been made without substantial qualifications. Botanicals expert witness, Cliff Blake (Blake), testified that, in his expert opinion, Micro Florist was not ready for release as a Windows 95 product at the time Botanicals entered into the purchase agreement with Microcode. Blake testified the Micro Florist software was still a test product at the time of the representations to Botanicals. He further testified Microcode failed to exercise reasonable care in representing to Botanicals that Micro Florist was fully compatible with Windows 95. Blake further opined that Microcode had not tested the Micro Florist software on enough equipment at the time of its representation to Botani-cals. From this testimony, the jury could have inferred Microcode either knew its representations were false or was ignorant of the truth because of insufficient testing.

We find Botanicals produced substantial evidence to show that Microcode did not know whether the representations were true or false at the time they were made, thereby making a submissible case for fraudulent misrepresentation. Therefore, the trial court did not err in denying Microcode’s motions for directed verdict. Point denied.

In its second point, Microcode argues the trial court erred in its instruction for the jury. Although the instructions follow the form of MAI 23.05, Microcode contends the instruction does not properly set forth the element of scienter. Microcode specifically. objected to the instructions at the instruction conference and again in its motion for new trial. The instructions given by the court follow:

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7 S.W.3d 465, 1999 Mo. App. LEXIS 1974, 1999 WL 793799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/botanicals-on-the-park-inc-v-microcode-corp-moctapp-1999.