Jordanich v. Gerstbauer

287 N.E.2d 784, 153 Ind. App. 416, 1972 Ind. App. LEXIS 761
CourtIndiana Court of Appeals
DecidedOctober 4, 1972
Docket3-672A20
StatusPublished
Cited by23 cases

This text of 287 N.E.2d 784 (Jordanich v. Gerstbauer) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jordanich v. Gerstbauer, 287 N.E.2d 784, 153 Ind. App. 416, 1972 Ind. App. LEXIS 761 (Ind. Ct. App. 1972).

Opinion

Sharp, J.

On June 23, 1969 the Plaintiffs-Appellants filed a complaint against the Appellees in which it was alleged that Theckla Gerstbauer was the owner of certain real estate in St. Joseph County, Indiana located in the Ireland Hill Addition. Said complaint further alleged:

“2. That defendants Richard A. Gerstbauer and Joseph Gerstbauer acted as agents for and on behalf of said defendant Theckla Gerstbauer in respect to the sale of lots in Ireland Hills.
3. That plaintiffs were desirous of purchasing a lot upon which to construct a dwelling of which purpose defendants had knowledge.
4. That on or before April 12, 1966, plaintiffs and defendants entered into negotiations for the purchase by the plaintiffs of the aforesaid Lot 3.
5. That in the course of said negotiations, plaintiffs inquired of defendants Richard A. Gerstbauer and Joseph Gerstbauer as to the nature and causes of a depression located on the aforesaid Lot 3.
6. That defendants represented to the plaintiffs that the aforesaid depression resulted from the removal of gravel therefrom and that said depression was recovered with clean fill.
7. That defendants well knew that the representations as to the nature of the fill were false.
8. That said representations were made with the intent of deceive plaintiffs and to induce plaintiffs to act on said representations.
9. That plaintiffs believed said representations to be true and were ignorant of their falsity.
10. That plaintiffs relied upon said representations and were thereby induced to purchase from defendant Theckla E. Gerstbauer the aforesaid Lot 3.
*418 11. That in further reliance of said representations, plaintiffs caused a dwelling to be built on said Lot.
12. That said representations of defendants were false in that the aforesaid depression was filled not with clean fill dirt but with dirt mixed with wood, trash and other debris.
13. That be [sic] reason of the aforesaid facts, a corner of plaintiffs’ partially constructed house settled into said depression breaking and cracking the foundation and plaintiffs were required to remove said debris-ridden fill and replace said foundation at a cost to them of $5,280.95; plaintiffs were unable to occupy said house during said time and were required to pay rent for shelter in the sum of $875.00; plaintiffs were required to heat said house during said repairs to prevent freezing damage to said house; that by reason of the foregoing plaintiffs were damaged in the sum of $7,500.00.”

The Defendants-Appellees filed an answer in general admission and denial and the case was submitted on January 13, 1972 before the trial court sitting with a jury. At the end of the case submitted by the Plaintiffs-Appellants, DefendantsAppellees filed motion for judgment on the evidence under Trial Rule 50(A) (1). Subsequently a motion to correct errors was filed and overruled and the sole issue presented on this appeal is the correctness of the trial court’s judgment on the evidence.

Earlier case law on directed verdict is still applicable under a motion for judgment on the evidence under Trial Rule 50(A)(1). In Galbreath v. City of Logansport, (1972), 151 Ind. App. 291, 279 N. E. 2d 578, we analyzed Trial Rule 50 by reference to previous Indiana cases, to the comparable Federal Rule and cases thereunder and by reference to treatise authority on both the Indiana and Federal Rule. From an examination of Galbreath and its authorities it is apparent that the standard for directing a verdict at the end of the plaintiff’s case is substantially the same now as before the enactment of the new Trial Rule 50. See Rouch v. Bisig, (1970), 147 Ind. App. 142, 258 N. E. *419 2d 888 (trans. den.). Thus, when a judgment on the evidence is made at the end of plaintiff’s case, the trial court must draw all fair and rational inferences from the evidence in favor of the party opposing such motion and give to that party every favorable intendment of the evidence. Harvey, Indiana Practice, Vol. 3, § 50.3.

These cases demonstrate that the granting of a motion under Trial Rule 50(A) (1) is proper only when the evidence is without conflict and is susceptible of only one inference and that in favor of the moving party.

In order for the Appellants to withstand the motion for judgment on the evidence in this case there must be some evidence or a reasonable inference from some evidence to establish the existence of fraud.

In Gladis v. Melloh (1971), 149 Ind. App. 466, 273 N. E. 2d 767, 770 (trans. den.), we recently defined fraud as follows:

“Also, there is a multitude of authority in the case law defining fraud, and perhaps the most workable definition for our purposes here is found in § 471 of Restatement of Contracts which states:
“ ‘Fraud’ in the Restatement of this Subject unless accompanied by qualifying words, means
(a) misrepresentation known to be such, or
(b) concealment, or
(c) non-disclosure where it is not privileged, by any person intending or expecting thereby to cause a mistake by another to exist or to continue in order to induce the latter to enter into or refrain from entering into a transaction; except as this definition is qualified by the rules stated in § 474.’
In addition § 473 of the Restatement of Contracts states:
‘A contractual promise made with the undisclosed intention of not performing it is fraud.’ ”
Even under the practice in Indiana before January 1, 1970, it was not necessary to actually use the term ‘fraud’ in order to properly plead the same. It was enough if the facts averred showed fraud. In re Haas’ Will, 115 Ind. App. 1, 54 N. E. 2d 119 (1944); Automobile Underwriters, Inc. *420 v. Smith, 131 Ind. App. 454, 166 N. E. 2d 341, 167 N. E. 2d 882, 171 N. E. 2nd 823 (1960), and Gorney v. Gorney, 136 Ind. App. 96, 181 N. E. 2d 779 (1962).”

See also, General Electric Co. v. Dorr (1966), 140 Ind. App. 442, 219 N. E. 2d 206.

It is not necessary that fraud be proved by direct or positive evidence, but it will be sufficient if facts and circumstances be proved from which it can be fairly inferred. See Baker v. Meench (1949), 119 Ind. App. 154, 84 N. E. 2d 719.

The evidence in this case infers that Richard Gerstbauer and Joseph Gerstbauer acted as agents for Theckla Gerstbauer in the sale of lots in Ireland Hills Addition and that they knew that the Appellants wanted to buy a lot on which to build a home.

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Bluebook (online)
287 N.E.2d 784, 153 Ind. App. 416, 1972 Ind. App. LEXIS 761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jordanich-v-gerstbauer-indctapp-1972.