Fox v. Ferguson

765 S.W.2d 689, 1989 Mo. App. LEXIS 196, 1989 WL 11631
CourtMissouri Court of Appeals
DecidedFebruary 14, 1989
Docket54642
StatusPublished
Cited by10 cases

This text of 765 S.W.2d 689 (Fox v. Ferguson) 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
Fox v. Ferguson, 765 S.W.2d 689, 1989 Mo. App. LEXIS 196, 1989 WL 11631 (Mo. Ct. App. 1989).

Opinion

KAROHL, Judge.

On December 1,1983, the Fergusons sold their residence, located in Poplar Bluff, Missouri, to John and Georganne Fox. Sometime in April or May, 1984, the shake shingle roof began to leak badly throughout the house. The Foxes sued the Fergu-sons on the theory defendants fraudulently misrepresented the sound condition of the roof. The primary defense offered by the Fergusons was that the Foxes did not rely on any representations regarding the roof because the plaintiffs hired an engineer who examined the roof and issued a report to the Foxes before closing the sale. Plaintiffs’ engineer reported the roof was sound. The jury found for defendants Ferguson. Plaintiffs Fox filed a motion for new trial alleging eight grounds of error. The trial court sustained plaintiffs’ motion for new trial solely on the ground that it erred in overruling plaintiffs’ objection to defendants’ closing argument that plaintiffs had lost their right to say they relied on any statements of the Fergusons because they hired the engineer. The issue on defendants’ appeal is whether the court erred in sustaining the motion for new trial.

The Foxes, as buyers and plaintiffs, filed a cross appeal. They claim that if they were not entitled to a new trial on the specific ground adopted by the trial court, then they were entitled to a new trial on other grounds alleged in their motion for new trial. Because it is presumed the trial court denied the motion on grounds not mentioned, plaintiffs are entitled to justify the granting of a new trial on other grounds. Benscoter v. Williams, 600 S.W.2d 217, 221 (Mo.App.1980).

We find the court properly granted a new trial on the specified ground that the court erred in overruling an objection to closing argument of defendants because the argument constituted a misstatement of law. The issue involves a legal question and not a question of fact. Accordingly, we review the award of a new trial on a question of law, not on a question of fact, and the decision does not depend upon a matter of trial court discretion. The grant of a new trial is discretionary only on questions of fact and matters affecting the determination of issues of fact. “There is no discretion in the law of a case, nor can there be an exercise of sound discretion as to the law of a case.” State ex rel. State Highway Commission v. Nickerson & Nickerson, Inc., 494 S.W.2d 344, 346 (Mo. 1973).

The law of Missouri recognizes nine elements of fraud, two of which relate to reliance. The hearer must have a right to rely and rely on the representation being true. Sofka v. Thal, 662 S.W.2d 502, 506 (Mo. banc 1983). The Fergusons denied any misrepresentations. However, they tried the case on the theory that the Foxes did not rely on any representations regarding the roof, but rather relied on an engineers report. The Foxes hired an engineer, received a report from the engineer approving the roof, waived inspection provisions contained in the real estate sale contract and closed on the sale contract. In that regard they argued to the jury:

*691 You gotta find for the defendants on that, more importantly if you move on down the road when they hired the engineer they lose their right to say we relied on what these folks told us or didn’t tell. us.

Plaintiffs immediately objected on the ground that the argument was a misstatement of the law. The court overruled the objection. This argument was the last substantive statement in defendants’ closing argument.

The trial court is required to prohibit or promptly correct misstatements of the law which occur in closing argument. White v. Gallion, 532 S.W.2d 769, 771 (Mo. App.1975). Where a misstatement is contrary to the law as submitted in the court’s instructions, and the court permits the misstatement by overruling an objection to it, “reversible error is almost inevitable.” Halford v. Yandell, 558 S.W.2d 400, 412 (Mo.App.1977). Both parties recognize these rules of law. The Fergusons contend that even if the argument misstates the law no prejudice resulted and this case should be considered as an exception allowed by the language “almost (but not always) inevitable.” We reject this claim of exception because the argument “they lose their right to say we relied” is an argument of law and a misstatement of law. The Foxes, plaintiffs, were entitled to rely on both the representations of the Fergusons regarding a sound roof and the report of the engineer they hired.

An independent investigation does not remove the legal right to rely on prior misrepresentations where the parties do not stand on an equal footing. See, Iota Management Corp. v. Boulevard Investment Co., 731 S.W.2d 399, 413-14 (Mo.App. 1987). The prerequisite for the right to continue to rely on the representations made before an independent investigation depends upon distinct and specific representations. Id. at 413. The hearer is entitled to rely on specific representations even if the parties have equal means of knowledge or the hearer conducts his own investigation but nevertheless does not stand on equal footing with the speaker and relies on the speaker’s representations. Id. at 413-14. “ ‘[T]he doctrine of notice and means of knowledge has no application where distinct and positive representations of fact have been made, have been relied upon and have induced action.’ ” Tietjens v. General Motors Corp., 418 S.W.2d 75, 82 (Mo.1967), (quoting Cantley v. Plattner, 228 Mo.App. 411,-67 S.W.2d 125, 130-31 (Mo.App.1934)).

In the present case, the Fergusons have not contested factual support for a finding of specific representations of the condition of the roof. They denied making the representations but the Foxes so testified. Further, the point on appeal is presented only as a question of law, and does not dispute the requisite evidentiary facts to support a determination that when plaintiffs hired an engineer, they did not lose their right to also rely on specific representations about a condition known to the sellers and not discoverable by the engineer.

The Fergusons reliance on Consumers Cooperative Association v. McMahan, 393 S.W.2d 552 (Mo.1965) is misplaced. The court there said:

Where the parties are on equal footing and the means of knowledge is equally available to both parties, a misrepresentation or erroneous statement of fact is not actionable.

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Bluebook (online)
765 S.W.2d 689, 1989 Mo. App. LEXIS 196, 1989 WL 11631, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-ferguson-moctapp-1989.