Ray v. Ponca/Universal Holdings, Inc.

913 P.2d 209, 22 Kan. App. 2d 47, 1995 Kan. App. LEXIS 188
CourtCourt of Appeals of Kansas
DecidedDecember 1, 1995
Docket73,427
StatusPublished
Cited by10 cases

This text of 913 P.2d 209 (Ray v. Ponca/Universal Holdings, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ray v. Ponca/Universal Holdings, Inc., 913 P.2d 209, 22 Kan. App. 2d 47, 1995 Kan. App. LEXIS 188 (kanctapp 1995).

Opinion

Green, J.:

Ponca/Universal Holdings, Inc., d/b/a Classic Cable (Classic Cable) appeals from a civil judgment under the Kansas Consumer Protection Act (KCPA), K.S.A. 50-623, et seq. Elva M. Ray sued Classic Cable, contending that Classic Cable reneged on an earlier promise to allow her to pay a reduced rate for cable service. The jury determined that Classic Cable committed a deceptive act or practice and awarded actual damages of $59.57. On appeal, Classic Cable contends (1) that the court erred in failing to instruct the jury that the deceptive act must be shown by clear and convincing evidence, (2) that the jury’s determination that Classic Cable committed a deceptive act is not supported by sub *48 stantial competent evidence, and (3) that the trial court abused its discretion in awarding a civil penalty of $2,742.

We conclude that the trial court properly instructed the jury, that the jury’s determination that Classic Cable committed a deceptive act is supported by substantial competent evidence, and that the trial court’s civil penalty award is reasonable. As a result, we affirm the judgment of the trial court.

Ray testified that she routinely paid for her cable service a year in advance because she received a reduced rate. When Ray received notice that the rates were going up, she phoned a representative of Classic Cable to ask if she could still receive a discount if she prepaid her cable charge. She testified that because the representative told her that she could receive 1 year’s service by paying $214.68, she sent a check to Classic Cable for that amount. The check included a notation that she was paying for a full year. In September, Classic Cable notified Ray that she owed $13.87. She was also charged for October and November. Ray then filed suit against Classic Cable under the KCPA. Instead of accepting the damage award of $59.57, Ray elected to accept a civil penalty. The trial court awarded a civil penalty of $2,742.

Classic Cable makes two arguments that the factual evidence was insufficient to sustain the juiy’s verdict. First, Classic Cable argues that the trial court should have instructed the jury that Ray had to present clear and convincing evidence of a deceptive practice to prevail. The jury was instructed as follows:

“Kansas law provides no supplier shall engage in any deceptive act or practice in connection with a consumer transaction. Deceptive acts and practices include, but are not limited to, the following, each of which is a violation [of] Kansas law, whether or not any consumer has in fact been misled:
1. Representations made knowingly or with reason to know that property or services have sponsorship, approval, accessories, characteristics, ingredients, uses, benefits or quantities that they do not have;
2. The willful use, in an oral or written representation, of exaggeration, falsehood, innuendo or ambiguity as to a material fact; and
3. The willful failure to state a material fact, or the willful concealment, suppression-or omission of a material fact.”

Ray’s brief points out that the instructions followed, almost verbatim, the wording of K.S.A. 50-626.

*49 Importantly, Classic Cable did not object to the jury instructions at trial. In holding that the failure to object to jury instructions precludes reversal on appeal unless the instruction was clearly erroneous, our Supreme Court stated:

“A party may not assign as error the giving or failure to give an instruction unless the party objects before the jury retires to consider its verdict. The objection must distinctly state the matter to which the party objects and the grounds for such objection unless the instruction is clearly erroneous. [Citation omitted.]” Bright v. Cargill, Inc., 251 Kan. 387, 409, 837 P.2d 348 (1992).

Classic Cable argues that the failure to give the clear and convincing instruction was clearly erroneous. Classic Cable reasons that a deceptive practice is “substantially the same” as fraud, which requires that the underlying facts be proven by clear and convincing evidence. However, Classic Cable cites no case law in support of this contention. We also found no case law or commentary which would indicate that the legislature intended to require the same or similar quality of proof in both fraud and deceptive practices. Indeed, the statute and the comments following the statute imply the opposite. K.S.A. 50-623 states:

“This act shall be construed liberally to promote the following policies:
(a) To simplify, clarify and modernize the law governing consumer transactions;
(b) to protect consumers from suppliers who commit deceptive and unconscionable practices;
(c) to protect consumers from unbargained for warranty disclaimers; and
(d) to provide consumers with a three-day cancellation period for door-to-door sales.”

Additionally, the KCPA specifically censures false or misleading representations regarding price reductions. Under K.S.A. 50-626(b)(7), deceptive acts and practices include

“making false or misleading representations, knowingly or with reason to know, of fact concerning the reason for, existence of or amounts of price reductions, or the price in comparison to prices of competitors or one’s own price at a past or future time.”

Finally, the liberal interpretation of the KCPA is further supported by a Washburn law review note entitled “A New Kansas Approach to an Old Fraud.” 14 Washburn L.J. 623 (1975). The note analyzes the KCPA and concludes that the legislature did not *50 intend to require that consumers prove ah the common-law elements of fraud.

“In determining the elements of proof required in a damage suit under the CPA proof of the ‘deceptive trade practice’ proscribed by the Act does not require proof of all the elements of a common law fraud. The word ‘fraud’ does not appear in the CPA; the Act does not mention any elements of common law such as scienter, reasonable reliance, material fact and resulting damage, except within a few of the listed per se violations. Further, the CPA's forerunners, Kansas misrepresentation case law and the BPA, did not require the plaintiff to prove all elements of common law fraud: Consumers cannot reasonably.be expected to bear a heavier burden of proof under an Act intended by the legislature to further advance Kansas consumer interests, than that required by its predecessors.” 14 Washburn L.J. at 635.

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Cite This Page — Counsel Stack

Bluebook (online)
913 P.2d 209, 22 Kan. App. 2d 47, 1995 Kan. App. LEXIS 188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ray-v-poncauniversal-holdings-inc-kanctapp-1995.