Van Der Stok v. Van Voorhees

866 A.2d 972, 151 N.H. 679, 2005 N.H. LEXIS 8
CourtSupreme Court of New Hampshire
DecidedJanuary 24, 2005
DocketNo. 2004-231
StatusPublished
Cited by46 cases

This text of 866 A.2d 972 (Van Der Stok v. Van Voorhees) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Der Stok v. Van Voorhees, 866 A.2d 972, 151 N.H. 679, 2005 N.H. LEXIS 8 (N.H. 2005).

Opinion

Nadeau, J.

The plaintiff, Frank Van Der Stok, appeals the Trial Court’s (Vaughan, J.) rulings denying him summary judgment and awarding attorney’s fees and costs to the defendant, Wayne Van Voorhees. We affirm in part, vacate in part and remand.

The trial court noted the following facts in its order on summary judgment. This case arises out of a transaction for the sale of real estate in Hanover between the defendant as buyer and the plaintiff as seller. During negotiations, the defendant explained to the plaintiff that he wanted to build a seasonal home near Dartmouth-Hitchcock Medical Center, where his wife was receiving dialysis treatment. The defendant claims that the plaintiff represented to him that “he could build a house on the property.” In fact, the parties discussed the possibility of the plaintiff building the defendant’s house. They did not discuss, however, the fact that the plaintiff had previously applied to the Hanover Zoning Board to build a seasonal home on the property and the application had been denied.

The parties entered into a purchase and sale agreement. At the closing, the defendant tendered a check for the purchase price and was given a deed by the plaintiff. Subsequently, the defendant went to the Hanover [681]*681town offices to inquire about the property and was told of the plaintiffs denied application to build a seasonal home. The defendant then stopped payment on his check.

The plaintiff brought an action on the purchase and sale agreement and on the check as a negotiable instrument. He also brought a claim under the bad checks statute, RSA chapter 544-B. The defendant counterclaimed for fraud/misrepresentation and for abuse of process and malicious civil prosecution.

The plaintiff moved for summary judgment, arguing that the defendant could not have reasonably relied upon his statements or omissions regarding whether the lot was buildable. The court denied summary judgment and the case went to trial. The jury found against the plaintiff on his remaining claim and for the defendant on his counterclaims. The jury awarded the defendant no damages but did award him attorney’s fees. The plaintiff appealed.

The defendant argues that the plaintiffs appeal is untimely because it was filed more than thirty days after the denial of his motion for judgment notwithstanding the verdict and to set aside the verdict. See Sup. Ct. R. 7(1)(A), (C). The plaintiff counters that he properly waited for a final ruling on attorney’s fees before filing his notice of appeal. We agree with the plaintiff. “Generally, when a trial court issues an order that does not conclude the proceedings before it, for example, by deciding some but not all issues in the proceedings ... we consider any appeal from such an order to be interlocutory____” Germain v. Germain, 137 N.H. 82, 84 (1993). The plaintiff properly waited for all issues in the case to be finally decided before bringing his appeal.

The plaintiff first argues that the trial court erred in denying summary judgment. In reviewing a denial of summary judgment, “we consider the affidavits and other evidence, and all inferences properly drawn from them, in the light most favorable to the non-moving party.” Peerless Ins. v. Vt. Mut. Ins. Co., 151 N.H. 71, 72 (2004); see also Dwire v. Sullivan, 138 N.H. 428, 430 (1994). If no genuine issue of material fact existed, and the moving party was entitled to judgment as a matter of law, then summary judgment should have been granted. See RSA 491:8-a, III (1997).

The defendant raised fraud as a defense to the plaintiffs claims. We have held that fraud in the inducement is a valid defense in a contract action: “New Hampshire law recognizes that the procuring of a contract or conveyance by means of fraud or negligent misrepresentation is an actionable tort and hence can be raised as a defense to a claim based on the [682]*682agreement.” Nashua Trust Co. v. Weisman, 122 N.H. 397, 400 (1982) (citations omitted). The party seeking to prove fraud must establish that the other party “made a representation with knowledge of its falsity or with conscious indifference to its truth with the intention to cause another to rely upon it.” Snierson v. Scruton, 145 N.H. 73, 77 (2000). In addition, the party seeking to prove fraud “must demonstrate justifiable reliance.” Id.

The plaintiff contends that the defendant could not show reasonable reliance on the plaintiffs alleged misrepresentation. Specifically, he argues that any reliance could not be reasonable where the purchase and sale agreement provided that the “Seller makes no representations as to land use law or regulations.” We disagree.

We have held that neither a standard merger clause, see Colby v. Granite State Realty, Inc., 116 N.H. 690, 691 (1976), nor the parol evidence rule, see Goldstein v. Gilman, 93 N.H. 106, 109 (1944), bars an action for fraud. The plaintiff, however, asserts that a specific contractual disclaimer can negate any alleged reliance and cites cases from other jurisdictions to support his position. See LaFazia v. Howe, 575 A.2d 182, 185 (R.I. 1990); Danann Realty Corp. v. Harris, 157 N.E.2d 597, 599 (N.Y. 1959). In Danann Realty Corp., for instance, the court noted:

[P]laintiff has in the plainest language announced and stipulated that it is not relying on any representations as to the very matter as to which it now claims it was defrauded. Such a specific disclaimer destroys the allegations in plaintiffs complaint that the agreement was executed in reliance upon these contrary oral representations.

Danann Realty Corp., 157 N.E.2d at 599 (citation omitted).

We decline to adopt that reasoning here. First, we are not convinced that, as a matter of law, the disclaimer in this case that “Seller makes no representations as to land use law or regulations” would put a reasonable person on notice that he could not rely upon the specific representation made in this case that the particular lot he was buying was a buildable lot. Moreover, we agree with Judge Fuld, dissenting in Danann Realty Corp., that “the law does not temporize with trickery or duplicity,” id. at 601:

“The law should not, and does not, permit a covenant of immunity to be drawn that will protect a person against his own fraud. Such is not enforceable because of public policy. Language is not strong enough to write such a contract. Fraud destroys all [683]*683consent. It is the purpose of the law to shield only those whose armor embraces good faith.”

Id. at 604 (quoting Ganley Bros., Inc. v. Butler Bros. Bldg Co., 212 N.W. 602, 603 (Minn. 1927)) (citation omitted).

This approach comports with our case law. We long ago observed: “The principle of the common law is well and distinctly settled, that positive fraud vitiates every thing — contracts, obligations, deeds of conveyance, and even the records and judgments of courts, incontrovertible as they are on every other ground----” Jones v. Emery, 40 N.H. 348, 350 (1860). We have also stated that “courts do not lend their aid to enforce agreements against the principles or the policy of law, or having injustice or fraud for their object.” King v. Hutchins, 28 N.H. 561, 576 (1854).

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Bluebook (online)
866 A.2d 972, 151 N.H. 679, 2005 N.H. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-der-stok-v-van-voorhees-nh-2005.