Carlson v. Chain

490 N.W.2d 469
CourtNebraska Court of Appeals
DecidedSeptember 29, 1992
DocketA-92-042
StatusPublished
Cited by2 cases

This text of 490 N.W.2d 469 (Carlson v. Chain) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlson v. Chain, 490 N.W.2d 469 (Neb. Ct. App. 1992).

Opinion

490 N.W.2d 469 (1992)

Jim R. CARLSON, Appellant,
v.
John H. CHAIN, also known as Jack Chain, also known as J.H. Chain, Individually and as President of Chain Oil, Inc., and Chain Oil, Inc., Appellees.

No. A-92-042.

Court of Appeals of Nebraska.

September 29, 1992.

*471 Dorothy A. Walker, of Mowbray & Walker, P.C., Lincoln, for appellant.

Paul E. Hofmeister, of Van Steenberg, Chaloupka, Mullin, Holyoke, Pahlke, Smith, Snyder & Hofmeister, P.C., and James L. Zimmerman, of Atkins, Ferguson, Zimmerman & Carney, Scottsbluff, for appellees.

SIEVERS, Chief Judge, and CONNOLLY and MILLER-LERMAN, Judges.

CONNOLLY, Judge.

This appeal arises from an order sustaining a demurrer. Jim R. Carlson brought suit against John H. Chain (Chain) and Chain Oil, Inc. (Chain Oil), alleging that Chain fraudulently misrepresented his relationship with Carlson's wife, intentionally inflicted emotional distress on Carlson, invaded Carlson's privacy, and cast Carlson in a false light. Chain's demurrer to Carlson's second amended petition was based on the ground that it failed to state facts sufficient to constitute a cause of action, pursuant to Neb.Rev.Stat. § 25-806(6) (Reissue 1989). Carlson assigns as error that the district court erred in sustaining a demurrer to his second amended petition and in dismissing the action. We affirm.

Carlson's second amended petition generally alleges that in September 1970, Chain and Chain Oil hired Carlson's wife, Sandra Sue Carlson, to be the sole office staff for Chain Oil. At the time, Carlson and his wife enjoyed good marital relations. Carlson frequently visited Chain's office, and during such visits, Chain sought Carlson's advice for starting a cattle feeding business. During these visits, Chain gave no indication that he had a sexual interest in Carlson's wife.

On July 25, 1990, Sandra Sue Carlson's employment with Chain Oil was terminated when Chain had her arrested for embezzlement in Denver, Colorado, as she returned from a trip to Japan.

In 1990, Gering State Bank forced Carlson to dissolve his livestock feeding business. In 1991, Carlson declared bankruptcy.

The second amended petition contained three theories of recovery. The alleged operative facts are as follows: Carlson alleged that Chain had fraudulently misrepresented Chain's relationship with Carlson's wife so that Carlson believed his wife was employed by Chain to serve as office staff, whereas Chain had sexually assaulted, molested, and harassed Carlson's wife over a period of 17 years in the course of her employment. Said sexual conduct caused Carlson's wife to develop posttraumatic stress disorder (PTSD). As a result of the alleged PTSD, the wife was psychologically and physically impaired and was unable to disclose Chain's alleged sexual assault of her to her husband, the appellant. Further, she was unable to respond sexually and emotionally to Carlson. Carlson further alleged that Chain had intentionally inflicted emotional distress on Carlson when Carlson learned of Chain's sexual conduct toward Carlson's wife. Carlson alleged that Chain's conduct was outrageous in character and extreme in degree. Finally, Carlson alleged that Chain had invaded Carlson's privacy and depicted Carlson in a false light when Chain informed the Gering State Bank that Carlson had embezzled funds, thereby causing Carlson's business to fail.

In reviewing an order sustaining a demurrer, an appellate court accepts the truth of facts well pled and the factual and legal inferences which may reasonably be deduced from those facts, but does not accept conclusions of the pleader. Balfany v. Balfany, 239 Neb. 391, 476 N.W.2d 681 (1991). For the purpose of this appeal, we assume the facts pled are true, and we must determine whether any cause of action has been properly pled.

Carlson's second amended petition stated three theories of recovery, which the petition labeled as three "causes of action." At this point, we mention the fact that *472 there were not three causes of action alleged. In reality, Carlson alleged two causes of action. The first cause of action consisted of facts alleged to support recovery for both fraudulent misrepresentation and intentional infliction of emotional distress. The second cause of action consisted of facts alleged to support recovery for invasion of privacy and presentation in a false light. ` " `[A] cause of action consists of the set of facts on which a recovery may be had.'"' Lewis v. Poduska, 240 Neb. 312, 316, 481 N.W.2d 898, 901 (1992) (quoting Lewis v. Craig, 236 Neb. 602, 463 N.W.2d 318 (1990)). Carlson's second amended petition alleges two sets of operative facts.

FRAUDULENT MISREPRESENTATION

For his first theory of recovery, Carlson alleged fraudulent misrepresentation. The question on appeal is whether Carlson has pled a cause of action to support recovery under a theory of fraudulent misrepresentation.

We assume as a basic fact that Chain spoke to Carlson on one or more occasions. We also assume for purposes of this appeal only that Chain sexually assaulted, molested, and harassed Sandra Sue Carlson. The question is whether the facts pled show that Chain fraudulently misrepresented his sexual relationship with Carlson's wife.

The Nebraska Supreme Court set forth the elements of fraudulent misrepresentation in Dammann v. Litty, 234 Neb. 664, 672, 452 N.W.2d 522, 528 (1990), as follows:

"To recover in an action for fraud based on a misrepresentation of fact, a plaintiff must prove that (1) the defendant made a representation of a material fact; (2) the representation was false; (3) the representation, when made, was known to be false or was made recklessly as a positive assertion without knowledge concerning the truth of the representation; (4) the representation was made with the intention that the plaintiff would rely on it; (5) the plaintiff reasonably relied on the representation; and (6) as the result of such reliance, the plaintiff suffered damage."

In his second amended petition, Carlson does not allege any representations which Chain made to him concerning his wife's employment. Counsel for Carlson admitted at oral argument that there were no such representations. Since Carlson has not alleged any representation, let alone a false representation, concerning the material fact of his wife's employment, Carlson has failed to allege a cause of action.

It is evident from Carlson's second amended petition that all damages that he seeks under this theory of recovery stem from loss of consortium with his wife. Since he is not in any way seeking recompense for any personal injury to his body or psyche, the averments in Carlson's second amended petition appear to state a cause of action for alienation of affections. "Alienation of affections consists of a third person's wrongful conduct intruding upon or interfering with the marital relationship between husband and wife and causing a loss of consortium." Creason v. Myers, 217 Neb. 551, 553, 350 N.W.2d 526, 527 (1984). The cause of action for alienation of affections was abolished by the Legislature in 1986. See Neb.Rev.Stat.

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490 N.W.2d 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlson-v-chain-nebctapp-1992.