Willmschen v. Meeker

750 P.2d 669, 1988 Wyo. LEXIS 17, 1988 WL 11703
CourtWyoming Supreme Court
DecidedFebruary 18, 1988
Docket87-83, 87-84
StatusPublished
Cited by18 cases

This text of 750 P.2d 669 (Willmschen v. Meeker) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willmschen v. Meeker, 750 P.2d 669, 1988 Wyo. LEXIS 17, 1988 WL 11703 (Wyo. 1988).

Opinion

URBIGKIT, Justice.

Cross appeals are presented, derived from consecutive installment-contract land sales, with buyer suing the real estate broker for land title and encumbrance misrepresentation as a fraud action, and the broker counterclaiming for a resale commission on a part of the purchased property. *670 Both litigants were unsuccessful in trial court, and we affirm, to their equal sufferance in denial.

We address the Willmschens’ appeal by affirming the trial court on disposition under stated Issue IV of their brief:

“WHETHER THE APPELLANTS WERE DAMAGED AS A RESULT OF THE FRAUDULENT MISREPRESENTATIONS OF THE APPELLEE,”

and as restated by appellee broker Meeker in his brief as Issue I:

“WHETHER PLAINTIFFS FAILED TO PROVE A PRIMA FACIE CASE OF DAMAGES AS A RESULT OF AN ALLEGED FRAUDULENT MISREPRESENTATION? (i.e. Whether the Appellants were damaged as a result of an ‘alleged’ fraudulent misrepresentation of the Appellee — ISSUE IV of Appellants’ brief).” 1

FACTS

This case involves consecutive sales of portions of a 320-acre parcel of land in Big Horn County, Wyoming. The first transaction occurred on May 1, 1981, when Larry W. Ellis and Janis M. Ellis sold the entire tract to Darrel R. Wagner and Teresa P. Wagner by a contract for deed. This contract required the escrow of a warranty deed from sellers to buyers; the escrow of a quitclaim deed from the buyers to the sellers; retention of the deeds by the escrow agent; and the sellers to consent to any whole or partial sale of the property by the buyers. A notice document of the existence of the sale was filed with the county clerk as the real estate transaction office of record. On October 7, 1981, the Wag- *671 ners assigned their acquisition interest (equitable estate) in the property to the Wyoming Production Credit Association of Cas-per (PCA), as a separate transaction loan security, by execution of an escrowed security transaction quitclaim deed and a recorded (April 9,1982) Notice of Assignment of Agreement.

On January 11, 1983, the Wagners listed the property for sale with Wes Meeker, d/b/a Meeker Agency. The listing agreement drafted by the agency real estate agent, Mr. Gifford, listed the only encumbrance as a “Mortgage to Larry Ellis.” A Meeker Agency representative subsequently went to the PCA office and was advised that the PCA would be willing to do anything it could to help accomplish resale of the property as would include security assignment release upon proportional payments to PCA for application on its loan to Wagners.

At this point in the title, the appellants, LeTisha and Stanley Willmschen, enter the picture by contacting the Meeker Agency about a land purchase, and were directed to an 80-acre parcel to be divided from the original 320 acres, and for which a purchase agreement was struck. An attorney was asked by Meeker to prepare a contract for deed, deeds, and escrow instructions for the transaction suitable for sale closing. A title insurance commitment was ordered for this transaction, and appellants, in mid-March of 1983, took possession of the 80 acres, subsequently closing on April 4,1983 and thus ending the first chapter of this saga when, by installment contract underlying the original sales installment contract, they had purchased 80 of the total 320 acres originally sold to Wagners. In essence, Wagners had undersold their purchase equity subject to agreed right of partial release of assignment debt encumbrance.

The following spring, appellants decided to resell the property, again splitting to create a 60-acre parcel and a 20-acre parcel. The 60-acre parcel was purchased by Dennis and Val Jean Beech through Meeker, who arranged for the sale documents to be prepared. This was done by the same attorney, who, aware of the PCA assignment, protectively provided not only that the contract for deed contain specific references to the prior agreements for deed, but also that a deed from Ellises to Wagners, and deed from Wagners to the appellants, as well as deed from appellants to Beeches should be placed in escrow.

Having completed the 60-acre sale to Beeches, the Willmschens, on May 16,1984, entered into a Deposit, Receipt, Offer and Acceptance typed agreement to sell the remaining 20-acre tract to Robert E. Claar, Carol A. Claar, and Robert E. Claar, Jr. Closing of the Claar sale for the 20 acres was to take place at a local bank. For reasons undisclosed in the record, the bank requested that the Willmschens leave the premises before the transaction could be closed, although the Claars as well as the Willmschens were present for that purpose. Nothing further was ever attempted or done thereafter to complete the transaction. Before the end of the month, the Willmschens vacated the 20-acre parcel, left the area, and discontinued payments to Wagners on the purchase obligation.

On December 16, 1985, the Willmschens filed suit against Wes Meeker, alleging three causes of action: (1) intentional misrepresentation (fraud); (2) punitive damages as a result of willful misrepresentation (fraud); and (3) violation of § 33-28-lll(a)(i), W.S.1977. 2 Appellee Wes Meeker filed a counterclaim for a $1,800 commission still due and owing on the Beech sale. The case was tried to the court starting October 15, 1986, and at the close of the case Meeker moved for a dí- *672 rected verdict 3 which was favored by dismissal of the complaint from which this appeal arrived. The trial was adjourned without defendant presenting his case on the counterclaim. That adverse court decision was followed by Willmschens’ motion for reconsideration, and objections to the defendant’s proposed order of dismissal. The saga ended January 27, 1987 when the trial court signed the Meeker order dismissing the Willmschens’ complaint but also dismissed the counterclaim to conclude the case by denied recovery to both parties.

PROOF OF DAMAGES

Although the facts in this case are complex, the law is not. Neither the Willmschens nor Meeker 4 proved their damages regardless of any fraud involved. 5 Generally, fraud without damage cannot serve as a foundation for an action of deceit. Gulke v. Brock, 222 Cal.App.2d 459, 35 Cal.Rptr. 200 (1963); 37 C.J.S. Fraud § 40 at 288. To hold a broker liable for fraud one must prove: (1) falsity of the representation; (2) guilty knowledge or scienter; (3) intent to deceive or cause someone to believe the falsehood; (4) reliance on the misrepresentation which induced the purchaser to act; (5) actual deception; and (6) injury or damage to the person dealing with the broker. Sanders v. Stevens, 23 Ariz. 370, 203 P. 1083 (1922); 12 C.J.S. Brokers § 107 at 308-309. The burden of proving the damages, beyond nominal ones, is upon the party seeking the recovery. Adel v. Parkhurst, Wyo., 681 P.2d 886, 892 (1984); State ex rel. Scholl v. Anselmi,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cottonwood Valley Ranch, Inc. v. Roberts
874 P.2d 897 (Wyoming Supreme Court, 1994)
Skane v. Star Valley Ranch Ass'n
826 P.2d 266 (Wyoming Supreme Court, 1992)
Brooks v. Zebre
792 P.2d 196 (Wyoming Supreme Court, 1990)
Britton v. Bill Anselmi Pontiac-Buick-GMC, Inc.
786 P.2d 855 (Wyoming Supreme Court, 1990)
Andersen v. Corbitt
777 P.2d 48 (Wyoming Supreme Court, 1989)
UNC Teton Exploration Drilling, Inc. v. Peyton
774 P.2d 584 (Wyoming Supreme Court, 1989)
Insurance Co. of North America v. Ventling
771 P.2d 388 (Wyoming Supreme Court, 1989)
Charter Thrift and Loan v. Cooke
766 P.2d 522 (Wyoming Supreme Court, 1988)
Ruby Drilling Co., Inc. v. TITLE GUAR. CO. OF WYO.
750 P.2d 674 (Wyoming Supreme Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
750 P.2d 669, 1988 Wyo. LEXIS 17, 1988 WL 11703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willmschen-v-meeker-wyo-1988.