Delta School of Commerce, Inc. v. Wood

766 S.W.2d 424, 298 Ark. 195, 85 A.L.R. 4th 1069, 1989 Ark. LEXIS 111
CourtSupreme Court of Arkansas
DecidedMarch 13, 1989
Docket88-276
StatusPublished
Cited by37 cases

This text of 766 S.W.2d 424 (Delta School of Commerce, Inc. v. Wood) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delta School of Commerce, Inc. v. Wood, 766 S.W.2d 424, 298 Ark. 195, 85 A.L.R. 4th 1069, 1989 Ark. LEXIS 111 (Ark. 1989).

Opinions

Jack Holt, Jr., Chief Justice.

Appellee Earlene Wood (Wood) filed suit against appellants Delta School of Commerce, Inc. (Delta), and Steve McCray (McCray), alleging that they fraudulently induced her to enter a course in nursing by making false representations that the course would lead her to a position of employment similar to that of a Licensed Practical Nurse. Delta and McCray denied making any false statements or fraudulently inducing Wood to enter a course of study. The jury found in favor of Wood and assessed compensatory damages of $3,064.00 and punitive damages of $50,000.00 against Delta and McCray. The trial court entered judgment accordingly. From this order, Delta and McCray appeal. We find no error and affirm.

Wood testified that in May or June of 1986, she read a newspaper article concerning a course of study at Delta leading to a diploma as a nursing assistant. Shortly thereafter, she made an appointment to talk with McCray, president of Delta, concerning the program. During their meeting, she asked him if a nursing assistant was the same thing as a nurse’s aide. McCray replied that it was not. He also told her that “they are phasing out the LPNs” and that “she would not get rich as a nursing assistant but that the pay would be comparable to that of an LPN.” Based upon these statements, she enrolled at Delta the next day. In addition, she got a student loan for $3,064.00. After completing seven months of the eight or nine-month program, she dropped out because she discovered she was studying to be a nurse’s aide. Wood further testified that the training for nursing assistants and LPNs is quite different: Nursing assistants learn to make beds, empty bed pans, and take vital signs; LPNs learn to assist in surgery and give medication and injections.

Although McCray denied that he told Wood “they are phasing out LPNs in the State of Arkansas, so the nursing assistants will be taking the place of the LPNs,” he acknowledged an awareness of the issue by stating that “the question that keeps coming up, whether or not LPN’s are being phased out, I’ve heard before.” Maxine Ottey, Director of Nursing Practice with the Arkansas Board of Nursing, testified that “a nursing assistant certainly cannot and does not take the place of an LPN.”

EXCLUSION OF EVIDENCE

The appellants contend that the trial court erred in excluding nursing magazine and journal articles concerning a debate in the nursing profession on phasing out the existing levels of entry into nursing practice (Registered Nurse, Licensed Practical Nurse, and nurse’s aide) and replacing them with two levels of entry into practice: professional nurse, which would contain persons entitled Registered Nurse, and technical nurse, which would contain persons entitled associate nurse or registered associate nurse. These articles were tendered at the close of the trial for the limited purpose of “showing the credibility” of Wood, “that the statements she relied on may have come from others and not Delta Career College.” After an exchange with appellants’ and appellee’s counsel, the court refused to admit the articles into evidence, stating in part that “the authenticity of a statement he never stated would not seem to be relevant.”1

The appellants apparently have abándoned their “credibility” argument made to the trial court as they now contend on appeal that by excluding these relevant articles, the trial court denied them the opportunity to present their theory of the case that the representations were true and that McCray did not know the representations were false.

As enunciated in Grendell v. Kiehl, 291 Ark. 228, 723 S.W.2d 830 (1987), see also McWilliams v. Zedlitz, 294 Ark. 336, 742 S.W.2d 929 (1988), the essential elements of an action for deceit are as follows:

(1) a false, material representation (ordinarily of fact) made by the defendant;
(2) scienter — knowledge by the defendant that the representation is false, or an assertion of fact which he does not know to be true;
(3) an intention that the plaintiff should act on such representation;
(4) justifiable reliance by the plaintiff on the representation; and
(5) damage to the plaintiff resulting from such reliance.

Contrary to the assumption made by appellants’ counsel, the articles in question contain nothing showing that the representations made by McCray were true. They merely show that there is a debate in the nursing profession concerning phasing out the existing levels of entry — professional and technical nurses. Furthermore, the theory of appellants’ case at trial was not, as they now allege on appeal, that the representations were true or that McCray believed them to be true, but rather that he did not make the representations. In fact, his testimony at trial (as well as in a pre-trial deposition) indicates he did not know whether LPNs are being phased out in Arkansas or what the future is for LPNs.

The admissibility of evidence is a matter within the sound discretion of the trial court. Missouri Pacific R.R. v. Mackey, 297 Ark. 137, 760 S.W.2d 59 (1988). Under the circumstances, we find no abuse of discretion by the trial court in excluding the articles.

EXPRESSIONS OF OPINION/PREDICTIONS OF FUTURE EVENTS

The appellants argue that the representations in question were expressions of opinion and predictions of future events, not representations of fact, and therefore not actionable. We disagree.

In general, an expression of opinion, i.e., a statement concerning a matter not susceptible of accurate knowledge, cannot furnish the basis for a cause of action for deceit or fraud. Grendell, supra. See also Vickers v. Gifford-Hill & Co., Inc., 534 F.2d 1311 (8th Cir. 1976); St.Paul Fire and Marine Insurance Co. v. Hundley, 354 F. Supp. 655 (E.D. Ark. 1973); Ryan v. Batchelor, 95 Ark. 375, 129 S.W. 787 (1910). However, an expression of opinion that is false and known to be false at the time it is made is actionable. Horn v. Ray E. Friedman & Co., 776 F.2d 777 (8th Cir. 1985). The general rule only applies where the person expressing his or her opinion does so in good faith. Anthony v. First National Bank of Magnolia, 244 Ark. 1015, 431 S.W.2d 267 (1968).

In Grendell, supra, we held that statements by the defendant that an oil investment was a “good thing” and would “make money” and that the wells would pump “fifty barrels a day” were in the nature of puffing and constituted mere expressions of opinion. In Cannaday v. Cossey, 228 Ark. 1119, 312 S.W.2d 442

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Bluebook (online)
766 S.W.2d 424, 298 Ark. 195, 85 A.L.R. 4th 1069, 1989 Ark. LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/delta-school-of-commerce-inc-v-wood-ark-1989.