Weisman v. Connors

547 A.2d 636, 76 Md. App. 488, 1988 Md. App. LEXIS 184
CourtCourt of Special Appeals of Maryland
DecidedSeptember 29, 1988
Docket522, September Term, 1986
StatusPublished
Cited by25 cases

This text of 547 A.2d 636 (Weisman v. Connors) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weisman v. Connors, 547 A.2d 636, 76 Md. App. 488, 1988 Md. App. LEXIS 184 (Md. Ct. App. 1988).

Opinion

WILNER, Judge.

Arthur Connors sued Frederick Weisman and Frederick Weisman Company (FWC), whom we shall sometimes collectively refer to as Weisman, in the Circuit Court for Anne Arundel County. The nature of the action is described in this Court’s Opinion in Weisman v. Connors, 69 Md.App. 732, 519 A.2d 795 (1987) and in the Opinion of the Court of Appeals in 312 Md. 428, 540 A.2d 783 (1988). Suffice it to say, for purposes of this proceeding, that (i) Frederick Weisman was the sole owner of FWC, a holding company whose chief component was a major Toyota distributorship known as Mid-Atlantic Toyota (MAT), (ii) in 1981, Mr. Weisman induced Connors, then a high-level executive with *491 Ford Motor Company, to leave Ford and accept employment with Weisman, (iii) Connors left Weisman’s employ after 27 months, believing that he had been constructively discharged, and (iv) he thereafter sued Weisman for breach of contract, negligent misrepresentation, and fraud.

The negligent misrepresentation and fraud counts were based on six alleged misrepresentations made by Weisman and relied upon by Connors, namely:

(1) that Connors would have broad executive responsibilities with regard to FWC in all aspects relating to the automobile business;
(2) that Connors would not be simply the general manager of MAT, which already had a general manager, one Robert McCurry;
(3) that FWC would replace a $200,000 life insurance policy that was being provided by Ford;
(4) that Connors would receive equity participation in all new FWC ventures relating to the automobile business and that the value of those interests would more than offset the benefits Connors would lose by leaving Ford;
(5) that FWC and MAT had a secure and stable franchise relationship with the Toyota organization; and
(6) that Weisman had a basically amicable relationship with MAT’S manager, Mr. McCurry—nothing more serious than a “communications problem.”

All three causes of action were submitted to a jury, which (i) found the defendants liable for breach of contract and negligent misrepresentation, (ii) awarded damages of $221,-900 and $2,705,961, respectively, on those causes, and (iii) found in favor of the defendants on the fraud count.

From the judgment entered on those verdicts, both sides appealed. Weisman complained principally, although not solely, about the action for negligent misrepresentation and the evidence and calculation of damages in that action. Connors complained about the court’s instructions on the fraud count and on certain aspects of the breach of contract *492 count. His complaint as to the fraud count was that the court effectively told the jury that the alleged fraud had to be proved beyond a reasonable doubt, rather than by the lesser standard of clear and convincing evidence. Because Connors was apparently satisfied with the net result of the verdict, however, he made clear to us at oral argument that his cross-appeal was merely a “protective” one—that if this Court was inclined to affirm the judgment entered by the Circuit Court on the breach of contract and negligent misrepresentation counts, he did not wish a reversal or new trial on the fraud count. See Weisman v. Connors, 69 Md.App. at 737 n. 1, 519 A.2d 795.

This Court did not set aside the favorable judgment but instead affirmed it. We therefore did not address any of the three issues raised in the cross-appeal.

Aggrieved by our decision, Weisman sought certiorari in the Court of Appeals, complaining principally about our affirmance of the judgment entered on the negligent misrepresentation count. 1 In a conditional cross-petition, Connors asked that, if the Court of Appeals decided to review any of the issues raised by Weisman, it also consider whether the trial court properly instructed the jury on the standard of proof for fraud.

The Court of Appeals granted Weisman’s petition to consider three issues: whether it is unnecessary to consider the question of duty as a prerequisite to liability in negligence for misrepresentation; whether a person could be liable for negligently but not fraudulently misstating his or her intentions; and what the appropriate measure of damages should be where one enters into a personal services *493 contract through misrepresentation. The Court denied Connors’ conditional cross-petition and thus declined to review the instructions on the fraud count.

In an Opinion filed in May, 1988, the Court of Appeals concluded, essentially, that (i) the tort of negligent misrepresentation is alive and well in Maryland, (ii) there was sufficient evidence in this case to permit the jury to find that Weisman had a duty to Connors not to make negligent misrepresentations of present or past facts about the position being offered to Connors, (iii) of the six representations complained of by Connors, the first four enumerated above constituted expressions of Weisman’s “present intention” that were not mistakenly made contrary to his actual then-present intention, and so those four representations could not serve as the basis of liability for negligent misrepresentation, and (iv) the other two representations constituted statements of present facts and could serve as the basis of liability, in that there was sufficient evidence that they were false, that they were negligently asserted, that Weisman intended for Connors to act on them and had reason to believe that Connors would rely on them, that Connors was justified in relying on them, and that he sustained damage as a result. Weisman v. Connors, 312 Md. 428, 540 A.2d 783 (1988).

Because the Court’s fourth conclusion required a retrial on the negligent misrepresentation count, the Court did not directly address the issue of damages, although, in a pregnant footnote, it cautioned the Circuit Court to be a bit careful in that regard.

The initial mandate appended to the Court’s Opinion read: “AS TO THE NEGLIGENT MISREPRESENTATION COUNT OF THE COMPLAINT: JUDGMENT OF THE COURT OF SPECIAL APPEAL REVERSED; CASE REMANDED TO THAT COURT WITH DIRECTIONS TO REMAND THE CASE TO THE CIRCUIT COURT FOR ANNE ARUNDEL COUNTY FOR A NEW TRIAL; COSTS TO ABIDE THE RESULT.”

*494 Connors quickly realized that this disposition left in limbo his complaint about the instructions on the fraud count. Neither this Court nor the Court of Appeals had addressed that complaint, although it had been properly raised and, in light of the ultimate reversal of the judgment on the negligent misrepresentation count, it had become “unmoot.” He therefore asked the Court of Appeals to clarify its mandate by directing this Court to consider that issue.

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Bluebook (online)
547 A.2d 636, 76 Md. App. 488, 1988 Md. App. LEXIS 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weisman-v-connors-mdctspecapp-1988.