Case Name: Frederick E. MORRIS, Plaintiff-Appellee Cross-Appellant, v. DODGE COUNTRY, INC., and New Mexico Leasing Company, a New Mexico corporation, and M. Hahn, Defendants-Appellants Cross-Appellees
Court: Court of Appeals of New Mexico
Jurisdiction: New Mexico
Decision Date: 1973-06-27
Citations: 85 N.M. 491
Docket Number: No. 1143
Parties: Frederick E. MORRIS, Plaintiff-Appellee Cross-Appellant, v. DODGE COUNTRY, INC., and New Mexico Leasing Company, a New Mexico corporation, and M. Hahn, Defendants-Appellants Cross-Appellees.
Judges: HERNANDEZ, J., concurs.
Reporter: New Mexico Reports
Volume: 85
Pages: 491–496

Head Matter:
513 P.2d 1273
Frederick E. MORRIS, Plaintiff-Appellee Cross-Appellant, v. DODGE COUNTRY, INC., and New Mexico Leasing Company, a New Mexico corporation, and M. Hahn, Defendants-Appellants Cross-Appellees.
No. 1143.
Court of Appeals of New Mexico.
June 27, 1973.
Rehearing Denied July 19, 1973.
Certiorari Denied Aug. 16, 1973.
Frank P. Dickson, Jr., Branch, Dickson & Dubois, P. A., Albuquerque, for defendants-appellants.
Joseph D. Beaty, Donald Klein, Jr., Albuquerque, for plaintiff-appellee.

Opinion:
OPINION
WOOD, Chief Judge.
This appeal involves an alleged conspiracy to defraud in connection with a car sold to plaintiff. The issues presented are: (1) evidence of a conspiracy; (2) an instruction as to how conspiracy may be proved; and (3) different jury verdicts against the alleged co-conspirators.
The car involved was obtained by Dodge (Dodge Country, Inc.) from the manufacturer. Dodge sold the car to Leasing (New Mexico Leasing Company). Leasing leased the car to a rental agency, who rented the car to its customers. Upon expiration of the lease, the rental agency returned the car to Leasing. Leasing then sold the car back to Dodge. Dodge, through its employee Hahn, sold the car to plaintiff. According to plaintiff, representations as to the car's history differed substantially from the history outlined in this paragraph. In addition, the mileage on the car was represented as 728 miles. The evidence is that the car's mileage was 9150 miles when sold to plaintiff.
Plaintiff sued for damages, alleging fraud on the part of Dodge and Hahn and a conspiracy to defraud on the part of all three defendants. The jury's verdict was in favor of Hahn. Its verdict was against Dodge and Leasing.
No question is raised in this appeal as to the existence of fraud; the issues raised go to the conspiracy aspect of the case.
Evidence of conspiracy.
For a conspiracy to exist there must be a common design or a mutually implied understanding; an agreement. First National Bank of Dodge City, Kansas v. Perschbacher, 335 F.2d 442 (10th Cir. 1964); Hedrick v. Perry, 102 F.2d 802 (10th Cir. 1939); State v. Deaton, 74 N.M. 87, 390 P.2d 966 (1964); State v. Farris, 81 N.M. 589, 470 P.2d 561 (Ct.App.1970). A conspiracy may be established by circumstantial evidence; generally, the agreement is a matter of inference from the facts and circumstances, including the acts of the persons alleged to be conspirators. State v. Deaton, supra. The question is whether the circumstances, considered as a whole, show that the parties united to accomplish the fraudulent scheme. Hedrick v. Perry, supra. In answering this question, we consider the evidence in a light most favorable to support the verdict, disregarding evidence and inferences to the contrary. Mascarenas v. Gonzales, 83 N.M. 749, 497 P.2d 751 (Ct.App.1972).
Leasing asserts there is no evidence that it was a part of any conspiracy to defraud. Plaintiff asserts the " . conspiracy . . . involved the common design of increased profits resulting from sale of an automobile misrepresented as to both prior use and true mileage . . . ." Plaintiff claims the evidence permits the inference that Leasing was a part of this conspiracy.
Plaintiff's theory of a common design is based on the relationship between Dodge, Leasing and Lloyd McKee. McKee was a stockholder and director of both Dodge and Leasing^ and an officer of Leasing. Leasing did a substantial amount of business purchasing cars from and selling cars back to both Dodge and McKee. There is evidence showing a very close relationship between Leasing and McKee. There is no evidence showing a similarly close relation ship between McKee and Dodge or between Dodge and Leasing. When Dodge went out of business, several of Dodge's employees went to work for McKee.
Thus, the evidence of conspiracy between Dodge and Leasing is three items: (1) McKee was a stockholder and director of both; (2) there were substantial business dealings between Dodge and Leasing; and (3) after Dodge went out of business, Dodge employees went to work for McKee.
From this evidence plaintiff asserts three inferences may be drawn:
1. Dodge and Leasing shared a motive to increase profit by lowering mileage on automobiles. Dodge and Leasing were separate businesses. Assuming both had a profit motive, that motive does not show an agreement as to how profit was to be increased. Further, this claim assumes mileage was lowered on more than one automobile. There is no evidence that mileage was lowered on any but the car purchased by plaintiff.
2. Leasing was aware of and participated in a scheme to increase the return from sale of its "used" cars by increasing attractiveness to buyers by lowering the odometer reading and disguising prior use. No such inference arises from the evidence. The only evidence is to the contrary. That evidence is that when Leasing resold the car to Dodge the odometer reading was correct and Leasing was paid wholesale value. There is no evidence that Leasing participated in any way from the proceeds of the sale by Dodge to plaintiff.
3. " . . . The nature of the acts done is such that a reasonable man could infer that all of the transactions involved were intended to increase profits and turn-over rate on these rental agency cars, for the benefit of the common owner of the corporations, Lloyd McKee . . . ." Again plaintiff assumes acts, in the plural, from the evidence of one act of mileage tampering. Again plaintiff would infer increased profits to Leasing as a result of mileage tampering when the only evidence is that the tampering occurred after Leasing resold the car to Dodge.
The evidence of conspiracy on the part of Leasing was insufficient to raise a jury question. Its motion for a directed verdict should have been granted.
Instruction as to how conspiracy may he proved.
Dodge and Leasing assert an instruction was erroneous which informed the jury how a conspiracy may be proved. Two objections presented to the trial court are argued here. The first is that there is no evidence of conspiracy on the part of Leasing. We agreed with this view in the first issue discussed. The second is that the instruction applied a "wrong rule" to conspiracy. Objections must be made to an instruction if error is to be preserved for appeal. Section 21-1-1(51) (1) (i), N. M.S.A. 1953 (Repl.Vol. 4). Further, the objection must specifically point out the claimed defect. Scott v. Brown, 76 N.M. 501, 416 P.2d 516 (1966); McBee v. Atchison, Topeka and Santa Fe Railway Co., 80 N.M. 468, 457 P.2d 987 (Ct.App.1969). The objection, "wrong rule," is similar to an objection that an instruction is an incorrect statement of the law. Such an objection is insufficient, no.t being specific. McBee, supra.
Different verdicts against alleged co-conspirators.
The verdicts against Dodge and Leasing differed in the amount of punitive damages awarded. By cross-appeal, plaintiff asserts the trial court should have granted its motion to combine the verdicts and enter one joint and several verdict against both Dodge and Leasing. We do not reach this question since there is no evidence to support any verdict against Leasing.
The judgment against Leasing is reversed. The judgment against Dodge is affirmed. The cause is remanded for further proceedings consistent with this opinion.
It is so ordered.
HERNANDEZ, J., concurs.
SUTIN, J., dissents.