Woolcock v. Beartooth Ranch

637 P.2d 520, 196 Mont. 65, 1981 Mont. LEXIS 908
CourtMontana Supreme Court
DecidedDecember 10, 1981
Docket81-255
StatusPublished
Cited by7 cases

This text of 637 P.2d 520 (Woolcock v. Beartooth Ranch) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woolcock v. Beartooth Ranch, 637 P.2d 520, 196 Mont. 65, 1981 Mont. LEXIS 908 (Mo. 1981).

Opinion

MR. JUSTICE DALY

delivered the opinion of the Court.

This is an appeal from a ruling in the District Court of the Eighth Judicial District of the State of Montana, in and for the County of Cascade, where the court granted defendants’ motion for change of venue and moved the action from Cascade County to Stillwater County.

Plaintiff and appellant, Russell Woolcock, d/b/a Spring Mountain Ranch, filed a complaint in Cascade County seeking both compensatory and punitive damages. In his complaint, Woolcock alleged that the defendants intentionally, falsely and fraudulently made representations regarding a bull named Negotiator 510L. The complaint further alleges that Woolcock relied on these misrepresentations and purchased the bull at an auction held by the Beartooth Ranch on October 10 and 11, 1979.

The defendants moved for a change of place of trial from Cascade County to Stillwater County. The District Court granted the motion on the grounds that Stillwater County was the residence and principal place of business of the defendants, was the place of the contract’s performance, and was the place of the occurrence of the alleged torts. Plaintiff and appellant appeals the order changing the place of trial and presents the following issues:

*67 1. Does the complaint state a contract claim or a tort claim?

2. Is Stillwater County the proper place for trial if the action is in tort?

3. Was sufficient evidence presented to the District Court to support the change of venue motion?

Appellant contends that his action is in tort, and, consequently, the contract venue statute is inapplicable. Appellant supports this contention by referring to specific language used in the complaint, such as: “.. . the representations alleged in paragraph III hereof were intentionally, falsely and fraudulently made for the purpose of causing plaintiff and the public to believe . . . that Negotiator 510L was the sole and only progeny of Justamere RN890C . . .” According to appellant, this language, coupled with the fact that there has been no action to rescind the contract, is sufficient to support an action in tort.

In State ex rel. Dimler v. District Court (1976), 170 Mont. 77, 550 P.2d 917, this Court stated:

“. . . Here, plaintiffs chose to affirm the contract and sue for fraudulent representations preceding the contract, representations which plaintiffs alleged induced them to sign the contract for purchase of defendants’ home.
“That such course of action is permissible and in fact is not a contract action has long been recognized in the law. 37 Am. Jur.2d, Fraud and Deceit, § 332, p. 439, states in pertinent part:
“A traditional remedy ordinarily available to a person who has parted with something of value as a result of a contract or transaction induced by fraud is that he may retain what he has received and bring an action at law to recover the damages sustained. Thus, a person who has been injured by the fraud of another or others, by either a party or parties to a transaction or a third party or third parties committing fraudulent acts involving or bringing about the negotiation of a transaction, such transaction usually but not necessarily involving business or commercial dealings, may maintain an action at law in tort to recover damages for the injury received from the fraud and deceit perpetrated by such other or others. The foundation of the action is not contract, hut tort . . .’ [Emphasis in Dimler.]
*68 . . 37 Am.Jur.2d, Fraud and Deceit, § 333, p. 442, continues the discussion:
“In accordance with the right to bring an action for deceit generally, a buyer who has been induced by the fraud of the seller to purchase real or personal property may ordinarily maintain an action for, or in the nature of, deceit to recover damages resulting from the fraud...’ [Emphasis in Dimler.]
ÍÍ
“Applying the authorities discussed to plaintiffs’ allegations of misrepresentation on the part of defendants, these conclusions can be made as to plaintiffs’ cause of action in the instant case: The cause of action arises from representations which plaintiffs claim induced the execution of the contract, section 13-308, R.C.M. 1947. Such representations necessarily contain an obligation to act in good faith. Such representations if knowingly false, as alleged, would be a “breach of obligation’ as contemplated by section 17-208. Additionally, a cause of action for fraudulent inducement can be in tort and thus independent of the contract and therefore affirmance of the contract does not automatically preclude suit in tort for fraud. Since plaintiffs’ cause of action for fraud is based in tort, not contract, section 17-208, R.C.M. 1947, is not controlling and plaintiffs can properly pray for punitive damages.” 550 P.2d at 920-921.

Here, the appellant has also chosen to affirm the contract and sue for fraudulent misrepresentations. Accordingly, the action is one in tort, and section 25-2-102, MCA, applies. That statute provides: “Actions for torts may be tried in the county where the tort was committed, subject, however, to the power of the court to change the place of trial as provided in this code.”

Appellant contends the tort was continuous in nature and that, therefore, according to section 25-2-102, MCA, Stillwater County is not the proper place for trial.

The general rule of venue has been reiterated numerous times by this Court. In Foley v. General Motors Corporation (1972), 159 Mont. 469, 499 P.2d 774, 775-776, we held:

“Thus the general rule governing venue of civil actions is that the action shall be tried in the county in which the defen *69 dants or any one of them reside at the commencement of the action.
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“In order to maintain suit in another county than that of defendant’s residence, plaintiff must clearly show facts relied upon to bring the cause within one of the exceptions to the general rule. Hidden Hollow Ranch v. Collins, 146 Mont. 321, 406 P.2d 365; Rapp v. Graham, 145 Mont. 371, 401 P.2d 579.” (Emphasis added.) Also, in Rapp v. Graham (1965), 145 Mont. 371, 373-374, 401 P.2d 579, 581, this Court emphasized that, “[statutory provisions creating exceptions to the general rule recognizing a defendant’s privilege to be sued in his own county will not be given a strained or doubtful construction”. From the authority cited above, it is apparent the general rule of venue shall be applied unless a clear reason for an exception appears.

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Cite This Page — Counsel Stack

Bluebook (online)
637 P.2d 520, 196 Mont. 65, 1981 Mont. LEXIS 908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woolcock-v-beartooth-ranch-mont-1981.