Opinion ID: 1755829
Heading Depth: 2
Heading Rank: 4

Heading: The MPA Claim Should be Remanded for Consideration of its Merits.

Text: The final issue is the nature and scope of remand on the MPA claim. Chase argues that if this Court finds that the trial court erred in dismissing Hess' MPA claim, it should remand for a new trial on both liability and damages. Hess argues that the elements necessary to prove his claim under the MPA are subsumed within the facts the jury necessarily found in his favor in finding for him on the fraud claim. Therefore, Hess contends the issue of liability is moot and this Court should remand with instructions to enter a directed verdict in his favor on the MPA claim and to hold a trial on his actual damages and attorneys' fees. [10] In order for liability to be moot on remand, it is essential that the jury at the first trial necessarily decide each and every fact essential to liability in their verdict. Dhyne, 188 S.W.3d at 456 (submissible case requires evidence of all facts essential to liability). Determining whether the jury found each and every fact essential to liability under the MPA claim in deciding the fraud claim in Hess' favor requires a comparison of the elements of the common law fraud claim submitted in the first trial, set out earlier, with the elements of Hess' MPA claim. Section 407.025 sets out the elements of a private right of action for MPA violations. It states in relevant part: Any person who purchases or leases merchandise primarily for personal, family or household purposes and thereby suffers an ascertainable loss of money or property, real or personal, as a result of the use or employment by another person of a method, act or practice declared unlawful by section 407.020, may bring a private civil action . . . Sec. 407.025.1. In this case, Hess must prove that he has: (1) purchased real estate; (2) for personal, family, or household purposes; and (3) suffered an ascertainable loss of money or property; (4) as a result of an act declared unlawful by section 407.020. Section 407.020 bars a variety of conduct, including concealment, suppression or omission of any material fact in connection with the sale of merchandise, which includes real estate. In finding for Hess on his fraud claim against Chase, the jury necessarily found that Hess satisfied the first and third elements just listed. In addition, reviewing the pertinent regulations the attorney general promulgated under the MPA, sec. 407.145, reveals that Hess' proof that Chase committed common law fraud was sufficient to prove the fourth element of Hess' MPA claim: that Chase engaged in unlawful conduct under the MPA when it concealed, suppressed or omitted a material fact in connection with the sale. Sec. 407.020.1. [11] MPA regulations define material fact, in pertinent part, as any fact which a reasonable consumer would likely consider to be important in making a purchasing decision . . .. 15 C.S.R. 60-9.010(1)(C). This definition of material is broader than the materiality requirement of common law fraud. See Carnahan v. American Family Mut. Ins. Co., 723 S.W.2d 612, 615 (Mo.App. E.D.1987) (holding that materiality for fraud purposes requires that the ultimate result would not have followed if there had been no representation). The regulations under the MPA further define omission of a material fact as any failure by a person to disclose material facts known to him/her, or upon reasonable inquiry would be known to him/her. 15 C.S.R. 60-9.110(3). Again, this imposes a broader duty on sellers than the common law imposes for fraud liability, as a fraud claim requires the seller to have actual knowledge of the material facts. See State ex rel. PaineWebber, Inc. v. Voorhees, 891 S.W.2d 126, 128 (Mo. banc 1995) (holding that speaker must have knowledge of its falsity or ignorance of its truth). Moreover, a fraud claim requires both proof of reliance and intent to induce reliance; the MPA claim expressly does not. Compare Voorhees, 891 S.W.2d at 128 (requiring intent to induce reliance, plaintiffs' reliance and right to rely to prove fraud) with 15 C.S.R. 60-9.110(4) (Reliance and intent that others rely upon such concealment, suppression or omission are not elements of concealment, suppression or omission as used in section 407.020.1). Proof of omission or concealment of a material fact under the MPA, therefore, plainly requires less proof than was required to prove the comparable elements of Hess' common law fraud claim. The jury's verdict in Hess' favor on the fraud claim establishes that Chase failed to disclose material facts for purposes of the MPA claim. There remains one element that was not submitted to the jury that Hess must prove to establish his MPA claim: that he purchased the real estate primarily for personal, family or household purposes. Sec. 407.025.1. Hess asserts that this element is uncontested, noting that uncontroverted trial testimony establishes that he built a home for his family on the property. Because the MPA claim had been dismissed prior to trial, and because the use for which Hess purchased the property was not necessary to prove his fraud claim, Chase had no reason to contest this issue. Chase states in this Court that it disputes the purpose for which the property was purchased and intends to contest the issue on remand. Because no record has been developed on the one unproven element, this Court cannot resolve whether any controverted facts preclude entry of judgment against Chase on Hess' MPA claim. On remand, following such discovery as may be appropriate on this issue, the trial court may determine whether this issue is truly controverted. If so, then Chase is entitled to a trial on its liability on Hess' MPA claim and on damages, though the parties are bound by law of the case on the three already proven issues. If not, then the parties are entitled to a trial on damages for the MPA violation. See Scott v. Blue Springs Ford Sales, Inc., 176 S.W.3d 140, 143 (Mo. banc 2005).