Nielson v. Flashberg

419 P.2d 514, 101 Ariz. 335, 1966 Ariz. LEXIS 341
CourtArizona Supreme Court
DecidedOctober 27, 1966
Docket8101
StatusPublished
Cited by99 cases

This text of 419 P.2d 514 (Nielson v. Flashberg) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nielson v. Flashberg, 419 P.2d 514, 101 Ariz. 335, 1966 Ariz. LEXIS 341 (Ark. 1966).

Opinion

McFarland, Justice:

F. P. Nielson, dba F. P. Nielson and Sons, hereinafter referred to as defendant, was sued by Jack Flashberg, hereinafter referred to as plaintiff, for fraudulent representations. The jury returned a verdict for plaintiff of $600.00 in actual damages and $5,000 punitive damages. Defendant appeals from the verdict and the amount of damages.

Plaintiff was engaged in the scrap iron business in Mesa, Arizona, at the time this cause of action arose. Scrap metals were purchased by plaintiff from various persons who usually delivered them to plaintiff’s place of business in truck or carloads. The purchase price was paid according to weight, and as plaintiff’s scale was of limited weighing capacity, large truck loads were sent to be weighed on the scales of defendant, a public weighmaster certified under A.R.S. §§ 44-2141 to 44-2145.

During the latter part of 1959 plaintiff commenced buying scrap metals from one Ramon Garcia, and in 1960 made regular purchases from him. On some thirty-seven occasions Garcia brought scrap metal to plaintiff’s yard in a truck and was sent to defendant’s public scale to have the truck *338 weighed while laden, and then again after unloading, so that the weight of the load might be properly determined. Defendant was fully aware of the fact that plaintiff paid his sellers, including Garcia, on a basis of so many dollars' per ton, and that plaintiff relied on defendant’s weight certificates in determining the price. On each occasion, defendant’s sons (who were partners in the business and generally acted in a managerial capacity) or the employees did the actual weighing and gave Garcia a weight certificate. These weight determinations took place over a period dating from December 31, 1959, to August 29, 1960. During this period, no question was raised as to the propriety of defendant’s performance of the weighing. Defendant billed plaintiff monthly, sending a statement of the weighing services performed. In late August or early September of 1960, plaintiff became suspicious upon examining defendant’s statement for the previous month, inasmuch as it showed Garcia’s truck to haye exactly the same unladen weight on several successive occasions. Plaintiff then caused one of his employees to accompany Garcia on his next trip to defendant’s scales. On that occasion the truck weighed 7300 pounds. The weight certificates from previous occasions had consistently shown the truck to weigh 4620 pounds.

At the trial plaintiff testified on cross-examination that Garcia had explained to him that defendant had not actually weighed the truck again after unloading, but that Garcia merely told defendant’s employees or sons the unladen weight and they entered it on the weight certificate, thereby saving themselves the trouble of weighing the truck twice. Garcia admitted to plaintiff that he had given defendant a false weight in order to receive a higher price per load, and in an effort to make recompense, Garcia had made payments to plaintiff of about $300.00 by the time of the trial.

Many of the material portions of plaintiff’s allegations were admitted by defendant or his son at the trial. They admitted knowing the nature of plaintiff’s business and that plaintiff relied on the weight certificates in computing payments to those from whom he was purchasing scrap. They also admitted there were times when Garcia’s truck was not weighed a second time, and there was no way plaintiff could ascertain this fact by looking at the weight certificate.

The complaint sought actual damages of $910.00 and asked punitive damages of $5,000. The jury was instructed they could set off any compensation plaintiff may have received from other sources, and a verdict was returned of $600.00 compensatory and $5000 punitive damages.

Defendant’s first assignment of error is predicated upon the trial court’s refusal to set aside the verdict and judgment and to enter judgment in accordance with defendant’s motion for a directed verdict for the reason that the elements of fraud were not established by clear and convincing proof, or at all.

We have held there is no actionable fraud without a concurrence of all the elements thereof. The elements of fraud have been established in this court by a long line of decisions. Wilson v. Byrd, 79 Ariz. 302, 288 P.2d 1079; Koen v. Cavanagh, 70 Ariz. 389, 222 P.2d 630; Rice v. Tissaw, 57 Ariz. 230, 112 P.2d 866; Waddell v. White, 56 Ariz. 420, 108 P.2d 565 (rehearing denied 56 Ariz. 525, 109 P.2d 843); Sims Printing Co. v. Kerby, 56 Ariz. 130, 106 P.2d 197; Stewart v. Phoenix National Bank, 49 Ariz. 34, 64 P.2d 101; Law v. Sidney, 47 Ariz. 1, 53 P.2d 64; Mutual Benefit H. & A. Ass’n v. Ferrell, 42 Ariz. 477, 27 P.2d 519; Moore v. Meyers, 31 Ariz. 347, 253 P. 626. As set forth in the case of Moore v. Meyers, supra, (rev. on other grounds), the elements are:

“* * * (1) A representation; (2) its falsity; (3) its materiality; (4) the speaker’s knowledge of its falsity or ignorance of its truth; (5) his intent that it should be acted upon by the person and in the manner reasonably contemplated; (6) the hearer’s ignorance of its *339 falsity; (7) his reliance on its truth; (8) his right to rely thereon; (9) his consequent and proximate injury. * * * ” 31 Ariz. at 354, 253 P. at 628.

With these principles in mind, we proceed to analyze the evidence to determine whether each of the elements are present. The elements which defendant claims were not present were:

(1) A representation. Defendant was a public weighmaster authorized and qualified under the provisions of A.R.S. § 44 — 2141. As authorized by this statute, he issued a certificate purporting to state the laden and unladen weight of the truck. The issuance of this certificate was a representation to plaintiff that defendant had weighed the truck while it was loaded, and again after it was unloaded.

(2) Its falsity. In an interrogatory, one of defendant’s sons admitted he believed there were occasions when the truck was not actually weighed after unloading. Plaintiff testified on cross-examination, without contradiction, that Garcia had admitted to him that he simply told the unladen weight and that was what was recorded. The evidence that the truck was not weighed after unloading is uncontradicted and certificates which represent that the truck was weighed twice are false.

(4) The speaker’s knowledge of its falsity or ignorance of its truth.

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Bluebook (online)
419 P.2d 514, 101 Ariz. 335, 1966 Ariz. LEXIS 341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nielson-v-flashberg-ariz-1966.