Freeman v. Myers

774 S.W.2d 892, 1989 Mo. App. LEXIS 1163, 1989 WL 90698
CourtMissouri Court of Appeals
DecidedAugust 15, 1989
DocketWD 41294
StatusPublished
Cited by20 cases

This text of 774 S.W.2d 892 (Freeman v. Myers) 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
Freeman v. Myers, 774 S.W.2d 892, 1989 Mo. App. LEXIS 1163, 1989 WL 90698 (Mo. Ct. App. 1989).

Opinion

KENNEDY, Judge.

Defendant Kyle Myers appeals from a judgment for $7,559.27 actual damages and $100,000 punitive damages in a jury-tried claim of fraudulent misrepresentation brought by Mary Freeman.

Mary Freeman and her husband on August 14, 1984, purchased a 1980 Ford LTD from Bannister Lincoln Mercury, Inc., for a purchase price of $6,105. The odometer showed mileage of 48,000-plus, and the Freemans were presented an odometer statement (see section 407.536, RSMo Supp. 1988) showing mileage of 48,452. The odometer statement was signed by plaintiff Mary Freeman. Mary Freeman’s husband, Sippeo, died four weeks after the purchase of the automobile.

The fact was the automobile had mileage of more than 125,000 at the time. The odometer had been rolled back by Bannister’s predecessor in title, defendant Kyle Myers, d/b/a Midway Truck and Auto Sales, from whom Bannister had purchased the automobile.

Mary Freeman testified that she relied upon the mileage shown on the odometer and the odometer statement and would not have purchased the car had she known it had been driven many thousands of miles more than the approximately 48,000-plus shown by the odometer and odometer statement.

Other evidence supported the verdict of the jury which found actual damages of $7,559.27 and there is no dispute about the evidentiary support for the amount of the actual damage verdict.

Myers, tacitly conceding the rolled back odometer and the odometer statement was a misrepresentation, see Jones v. West Side Buick Auto Co., 231 Mo.App. 187, 93 S.W.2d 1083, 1086 (1936), sets up as a defense to Freeman’s fraud claim the fact that Myers’ misrepresentation was not made directly to the Freemans. The jury was entitled to infer, however, that the representation implicit in Myers’ odometer rollback was intended or at least expected by him to extend to and be relied upon by a *894 retail purchaser of the car from the automobile dealership to whom Myers sold the car. The fact Myers' fraudulent statement was not made directly to the Freemans is not a defense to the Freemans’ damage claim against him. The rule is thus stated in Restatement (Second) of Torts § 533 (1977):

The maker of a fraudulent misrepresentation is subject to liability for pecuniary loss to another who acts in justifiable reliance upon it if the misrepresentation, although not made directly to the other, is made to a third person and the maker intends or has reason to expect that its terms will be repeated or its substance communicated to the other, and that it will influence his conduct in the transaction or type of transaction involved.

Wilson v. Murch, 354 S.W.2d 332, 337 (Mo.App.1962); Handy v. Beck, 282 Or. 653, 581 P.2d 68 (1978); 37 Am.Jur.2d Fraud and Deceit § 298 (1968).

Myers next claims that Freeman’s claim against him was released by Freeman’s pre-trial settlement with co-defendant Bannister Lincoln Mercury, Inc., and a release of Bannister Lincoln Mercury, Inc., for a payment to Freeman of $32,500.

The release executed by Mary H. Freeman, however, expressly reserves “any and all claims and causes of action against Kyle Myers, d/b/a Midway Truck and Auto Sales”. The “Stipulation for Dismissal with Prejudice” specifically stipulates that “Counts V, VI, VII, VIII and IX of Plaintiffs’ Amended Petition for Damages be dismissed with prejudice”. Those counts are against Bannister Lincoln Mercury, Inc. only, and are not against defendant Myers. There is nothing in the language of the release or the stipulation for dismissal which purports to acknowledge receipt of the $32,500 as full satisfaction of Freeman’s claim, and there is no merit to Myers’ argument that the release and the stipulation for dismissal discharged him from liability even as it discharged Bannister. Section 537.060, RSMo 1986; Manar v. Park Lane Medical Center, 753 S.W.2d 310, 312-13 (Mo.App.1988); Arana v. Koerner, 735 S.W.2d 729, 734-35 (Mo.App.1987).

Myers next claims that since Freeman received from Bannister Lincoln Mercury, Inc., for her release a settlement amount of $32,500, admittedly .well in excess of her actual damages, that the release extinguished her claim both for actual damages and punitive damages. Myers frankly says in his brief that there are no Missouri cases supporting this proposition, and he does not cite any cases from another jurisdiction. Myers cites only the well-known rule that a plaintiff is entitled to one satisfaction for injuries received, Haley v. Byers Transportation Company, 394 S.W.2d 412, 416 (Mo.1965). 1

A similar argument to defendant’s was rejected by the Court of Special Appeals of Maryland in Exxon Corporation v. Yarema, 516 A.2d 990 (Md.App.1986). In Exxon, plaintiff had settled with a co-defendant of Exxon for an amount exceeding the actual damages awarded to plaintiff upon trial against Exxon. The trial court reduced the actual damage award against Exxon to zero by the application of the amount plaintiff had received from the co-defendant in settlement. Exxon argued that since plaintiff had already received his actual damages by way of settlement, and since a plaintiff had to show actual damages before he could be entitled to punitive damages, the plaintiff was therefore not entitled to the punitive damages awarded to him in the trial against Exxon. The Maryland Court of Special Appeals rejected Exxon’s claim, holding that the jury’s award of compensatory damages to plaintiff, even though it was canceled by the trial court’s application of the settlement amount, satisfied the requirement of proof of compensatory damages before one could be entitled to punitive damages. The punitive damages award against Exxon was therefore affirmed.

*895 We reject Myers’ contention that plaintiff’s claim was extinguished by her settlement with Bannister Lincoln Mercury, Inc.

Plaintiff submitted her case to the jury by separate instructions on two theories—common law fraud and violation of federal odometer statutes, 15 U.S.C. § 1988, et seq., and a separate verdict form was submitted for each. The jury returned verdicts for the plaintiff on both theories. On the common law fraud submission the jury found actual damages of $7,559.27 and punitive damages of $100,000. On the federal odometer law submission the jury returned a verdict for plaintiff of actual damages of $107,559.27.

After the jury verdict the plaintiff elected to take the common law fraud verdict of $7,559.27 actual damages and $100,000 punitive damages, and judgment was entered accordingly.

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Bluebook (online)
774 S.W.2d 892, 1989 Mo. App. LEXIS 1163, 1989 WL 90698, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-myers-moctapp-1989.