Control Data Corp. v. Garrison

233 N.W.2d 740, 233 N.W.2d 736, 305 Minn. 347, 1975 Minn. LEXIS 1335
CourtSupreme Court of Minnesota
DecidedSeptember 19, 1975
Docket44928
StatusPublished
Cited by2 cases

This text of 233 N.W.2d 740 (Control Data Corp. v. Garrison) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Control Data Corp. v. Garrison, 233 N.W.2d 740, 233 N.W.2d 736, 305 Minn. 347, 1975 Minn. LEXIS 1335 (Mich. 1975).

Opinion

Sheran, Chief Justice.

Appeal from a judgment in favor of plaintiff and against defendant and from prejudgment orders of the district court. We affirm.

The appeal follows an action instituted by Control Data Corporation (CDC) against Allan Garrison, individually and doing business as Garrison Construction Company, for damages which resulted when a commercial building constructed by Garrison and thereafter acquired by CDC proved defective.

Garrison owned and was in possession of the building site during construction. CDC took possession of the building originally as a tenant and acquired title approximately 8 months later, on October 1,1969. Within a year, the northwest corner of the building had settled so much that this part of the structure was unsafe for occupancy and was evacuated to permit necessary reconstruction.

At the conclusion of the trial, the jury returned a special verdict, reading in part as follows:

“Question 1: Did defendant Garrison represent to plaintiff Control Data, at the time of the events leading up to the sale here involved, that the office portion of the building in question was structurally sound?
*349 “Answer: Yes
Yes or No
“Question 2: If you ans-wer Question 1 ‘Yes’, then answer this question: Was that representation false?
“Answer: Yes
Yes or No
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“Question 3: Did that representation have to do with a past or present fact?
“Answer: Yes
Yes or No
“Question 4: Was the fact material?
“Answer: Yes
Yes or No
“Question 5: Was that fact susceptible of knowledge?
“Answer: No
Yes or No
“Question 6: Did defendant Garrison know that representation to be false, or in the alternative, assert it as of his or its own knowledge without knowing whether it was true or false?
“Answer: Yes
Yes or No
“Question 7: Did defendant Garrison intend to have the plaintiff induced to act, or justified in acting upon it?
“Answer: Yes
Yes or No
“Question 8: Was plaintiff Control Data induced to act or justified in so acting?
“Answer : Yes
Yes or No
“Question 9: Did plaintiff Control Data act in reliance upon that representation?
“Answer: Yes
Yes or No
“Question 10: Did plaintiff Control Data suffer damage?
*350 “Answer : Yes
Yes or No
“Question 11: Was damage attributable to the misrepresentation so as to be the proximate cause of the damage ?
“Answer: Yes
Yes or No”

Damages in the amount of $106,000 were awarded to plaintiff.

The trial court directed that judgment be entered for plaintiff in the amount of $106,000. Defendant then moved for an order vacating and setting aside the special verdict and for an order granting judgment notwithstanding the verdict in favor of defendant or, in the alternative, for a new trial. These motions were denied. Judgment was entered, and this appeal followed.

An essential element in an action for fraud is that the fact misrepresented must be “susceptible of knowledge.” Davis v. ReTrac Mfg. Corp. 276 Minn. 116, 117, 149 N. W. 2d 37, 39 (1967); Vandeputte v. Soderholm, 298 Minn. 505, 508, 216 N. W. 2d 144, 146 (1974); Hanson v. Ford Motor Co. 278 F. 2d 586, 591 (8 Cir. 1960); Clements Auto Co. v. Service Bureau Corp. 298 F. Supp. 115, 125, affirmed, 444 F. 2d 169 (8 Cir. 1971). The parties have not cited any authority dealing with the precise meaning of the quoted words. Webster’s New International Dictionary (2 ed. 1947) p. 2541, gives as the preferred meaning of the word “susceptible” this definition:

“* * * Of such a nature, character, or constitution as to admit or permit; capable of submitting successfully to the action, process, or operation; — with of, followed usually by an action noun (or, less often, a verbal noun); as, a theory susceptible of proof; a gem susceptible of a brilliant polish; a theme susceptible of being developed (or of development).”

The essential question on this appeal is whether the answer to special interrogatory No. 5 (asserting in effect that the unsound character of the construction was not susceptible of knowledge) can be reconciled with the answers to the other interroga *351 tories and with the entry of judgment in favor of plaintiff. We affirm because, in our view, the evidence in this case establishes as a matter of law that the representation found to have been made by the defendant, i.e. that the portion of the building in question was structurally sound, was susceptible of knowledge. See, Hill v. Wilmington Chemical Co. 279 Minn. 336, 156 N. W. 2d 898 (1968); Majerus v. Guelsow, 262 Minn. 1, 113 N. W. 2d 450 (1962).

Plaintiff advanced two factual theories in support of its claim that the building was not structurally sound, as Garrison represented it to be: (1) That the soil composition was such as to provide inadequate support for the structure; and (2) that pilings driven into the ground to give additional support for the structure may have been broken during the pile-driving process, making the pilings unsuitable for the purpose intended.

It is clear to us that the load-bearing capacity of the ground on which a structure is built is subject to scientific analysis by appropriate borings and tests. Where, as here, a building is constructed by the person who owns and is in possession of the land, in the absence of evidence of extraordinary circumstances, not present here, we hold that the capacity of the building site to bear the load placed on it is susceptible of knowledge. Further, the evidence is clear that defendant had preconstruction knowledge of the peculiarities of the soil at the construction site which could have caused “negative load,” a phenomenon which could explain the unusual deterioration of the foundation in the northwest section of the building.

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Bluebook (online)
233 N.W.2d 740, 233 N.W.2d 736, 305 Minn. 347, 1975 Minn. LEXIS 1335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/control-data-corp-v-garrison-minn-1975.